Cyprus has always been an important international destination for tourism and business. The country’s success is determined by its geographical location, mild climate and hot sun. The nature of Cyprus is very diverse: there are long beaches, mountains and forests. Cyprus has a total of 53 beaches, awarded the prestigious “Blue flag” for compliance with international standards for cleanliness, safety and quality of infrastructure and service. Cyprus is a link for Europe, the Middle East and North Africa. The island’s air links with the mainland are excellent. Cyprus is a country rich in history, culture and hospitable people. The lowest crime rate in Europe makes the island even more attractive to foreign visitors. All these conditions create great potential for the development of tourism and the real estate market.
Property in Cyprus for almost twenty years is in stable demand among foreign citizens. At the same time to choose a property in Cyprus must be carefully. Already quite long time in the market there is a large number of not the most reliable offers on unfinished objects. Like many other European real estate markets, Cyprus suffered from the 2008 crisis. Since then, until 2015, housing prices have fallen by an average of 27%. At the end of 2015, the rate of decline in real estate prices has already slowed significantly. 2016 was a record year for the Cypriot tourism industry. The number of tourists visiting Cyprus, according to preliminary data exceeded 3,300,000 people, which is almost four times the population of Greek Cyprus.
After the deterioration of the situation in Turkey and Egypt, a significant part of the tourist flow from Russia and other countries switched from these countries to Cyprus. Accordingly, this has had a positive impact on the real estate market. Prices and rental rates have shown an increase or stabilization among all property options.
The following is the change in property prices, rents and yields on an annual basis
as of the end of 2016, the source - annual report on the situation in the economy and real estate in Cyprus for 2016 from the company Ressolut Asset Management
As for the General state of the economy, according to statistics of the European Commission (European Commission), in 2015 Cyprus GDP grew by 1.4%. According to forecasts of European officials, in 2016, the country's GDP increased by 1.5%, and in 2017 by 2%. For example, in the second quarter of 2017, GDP growth amounted to 3.6% year-on-year.
Key indicators of the economy of Cyprus, 2014-2017
Source: European Commission
GDP growth (% of the previous year)
Inflation (% to previous year)
Most indicators of market activity indicate that the Cyprus property market is entering a phase of recovery. According to the forecast Trading Economics, by 2020, property prices on the island will increase by 4.6% compared to September 2015.
As noted by local observers, the steady growth of the real estate market in Cyprus began after the withdrawal of Cyprus from the program of financial assistance. Recall that Cyprus received from the EU 10 billion euros in aid after the financial crisis of 2008. Successful completion of the banking sector reforms and withdrawal from the aid program have strengthened investor confidence in the Cyprus economy. Cyprus authorities are consistently simplifying taxation and doing business in the country.
Foreigners acquire every fourth property in Cyprus. The most active foreign investors come to the island from the UK and the CIS countries, especially Russia. The share of Chinese owners is growing every year.
Property in Limassol on average 20-30% more expensive than in Paphos and other areas on the coast of Cyprus. The reason is not only a resort town, but also a leading financial center in the country.
As for rent, the average monthly rent in Cyprus will cost 324 euros. The highest rental rates for apartments are fixed in Limassol and Nicosia (373 and 372 euros per month, respectively), and the lowest — in Paphos and Ayia NAPA (about 270 euros). Renting a house in Cyprus on average will cost 533 euros. The highest rates for rental houses in Limassol, where one month of living in a townhouse with three bedrooms will have to pay 631 euros. It is cheaper to rent the same house in Paralimni — 445 euros per month.
Simultaneous decrease in prices and rental rates on housing leads to stabilization of profitability. According to RICS, the average profitability of apartments in Cyprus is 3.9 %, and houses — 2.0%, which is approximately equal to the yield of similar objects in Europe.
Currently, Cyprus is beginning to actively develop the direction of construction of new hotels, as most hotels in Cyprus are outdated, and the flow of tourists is constantly growing by 10-20% per year.
Why for the acquisition of real estate is to contact us
Our company has access to 100% of the property sold in Cyprus, so if the client has time, we will be able to show absolutely all liquid objects of the island. Unfortunately, not all 100% of the property sold has a “clean” history and can be qualified for citizenship. The work of our company is to offer customers only those objects that have a “clean” history and are suitable for purchase. The cost of objects, their location, completeness, etc. – this is open and public information in Cyprus, which can always be verified by the buyer from open sources.
Obtaining Cyprus citizenship involves several very important stages that are interconnected and must work in full synchronization with each other. The need to link all the processes leading up to the acquisition of citizenship is key, since the failure or malfunction of one of the stages can lead to the impossibility of obtaining citizenship or create risks of its loss in the future. That is why our company provides a full range of services for obtaining Cyprus citizenship in order to eliminate any of the risks described above. Our company is responsible to the client and fulfills the terms of the contract in full.