Real estate investment in Cyprus
In a period of sustained economic growth and profound success for Cyprus, one of its biggest growth markets has been real estate. From the capital Nicosia to the smaller towns and cities, an increasing number of people are seeking to buy and invest in properties on the island.
Thanks to the recent boom, property investment is one of the most popular options when applying for the Cypriot Citizenship by Investment visa. Read below for more information on the Cypriot property market, and why now is a perfect time to invest in property and development projects.
History of real estate in Cyprus
While Cyprus has always been a popular destination for tourism and holiday homes, its property market has tended to ebb and flow with the state of the Cypriot economy. The early 2000s marked the biggest period of sustained growth following the country’s acceptance into the European Union, and the end of ongoing uncertainty over the security of the Republic.
The 2008 global financial crisis stymied this growth, as property markets crashed all around the world, and far less money was available for investment. This became a triple-blow with the combined effects of the 2011 naval base explosion and the 2012-13 Greek debt crisis, in which Cypriot banks suffered from their traditional ties to the country.
2017-18 however has marked a new high for the Cypriot property market, on the back of strong growth in Cyprus and across the Eurozone. Measures to increase property developments in town centres were initiated in 2013, attracting significant foreign investments. As a result of this and other schemes, Cyprus began to thrive, and was able to end its EU bailout early in 2016.
Why invest in Cypriot real estate?
While the measures taken by the Cypriot government have helped to encourage growth, there are numerous other reasons why you might choose to invest in Cypriot real estate. They include:
2017 saw the introduction of the Startup Visa scheme, providing 150 visas for innovative businesses from outside the EU. Cyprus is looking to attract these businesses as it believes they have a high potential for rapid growth and success. By providing land or facilities to these businesses over the short and long term, you might be able to capitalise on this growth yourself.
Cyprus may be experiencing a period of success, but it’s never stopped being an attractive destination. The island is perfectly situated between Europe’s Mediterranean, the African continent and the edge of Asia, making it a balmy and beautiful destination for a holiday home. It’s also perfectly positioned as a home for businesses looking to straddle three of the world’s largest continental markets.
While Cyprus has begun to attract more high-tech and innovative businesses, the key to its growth has been its existing industries. Tourism provides over 80% of the island’s GDP, and employs more than 70% of its workforce.
Shipping meanwhile is busier than ever, with most major companies holding offices and HQs in Cyprus. And the discovery of large natural gas reserves off the coast has put the focus on energy companies, helping the island become self-sufficient.
If you aren’t from an EU country, taking advantage of Cyprus’ Permanent Residence scheme will grant you the benefits of living in the EU, with a pathway to full citizenship after seven years. Alternatively, applicants for Cyprus’ Citizenship By Investment scheme can receive full Cypriot citizenship within months, gaining all of the rights and perks of an EU and Cypriot citizen.
As the spectre of the 2008-09 financial crisis disappears, economic growth is rising across the Eurozone. Businesses are beginning to prosper again, and individuals and companies have more money for investments and expansion. By getting in ahead of the curve, you can preempt further interest in Cyprus, and capitalise on real estate for businesses and second homes.
Investment visa applicants
Even if you are applying for an investor visa yourself, the continued attraction of Cyprus for other investors should be a key attraction. As one of only two countries in the EU offering an investment visa, Cyprus will continue to be popular with those looking to benefit from all the Union has to offer. By beating them to the punch, you can benefit from investments in land and properties which might reap further investment.