Why Investing in Property in Cyprus
Investing in property in Cyprus: The real estate market in Cyprus is highly active today, with strong demand for both houses and apartments. Investing in Cypriot property opens doors to business diversification, financial stability, and long-term income. As the saying goes, “Don’t postpone what you can do today until tomorrow.”
Houses and Apartments Increase in Value
In 2022, property values in Cyprus rose by 15-20%. While some brokers predict a slowdown in price growth, demand remains high. However, rising lending rates have reduced interest among local buyers.
European Market Influence
Buyers from Scandinavia, Great Britain, and Germany dominate the European market. These investors have high purchasing power and contribute significantly to the bullish trend in Cypriot real estate.
High Demand from Russian Investors
Many investors from third countries, especially Russia, are drawn to Cyprus for its real estate and the opportunity to obtain Cypriot permanent residence. Amid international sanctions, Russian citizens seek EU residency, making Cyprus a top choice.
Limassol and Larnaca: Top Priorities
Cyprus offers permanent residency through the purchase of residential or commercial property worth €300,000 + VAT. Apartments priced between €300,000 and €500,000 in Limassol and Larnaca are in high demand. Buyers should act quickly, as properties in these prime locations are selling fast.
Residential Real Estate the Picturesque Paphos
Paphos saw a 22% increase in residential real estate sales last season. The area is known for its villas and low-rise apartment complexes. Experts consider Paphos the best region for quality of life on the island, making it ideal for those seeking a relaxed pace.
Properties in Paphos are highly sought after for tourist rentals, especially during summer. Buyers from Europe and the UK have driven prices up, with property values doubling in recent years.
Long-Term Investments
Investing in Property in Cyprus is highly profitable. The market is rising, allowing investors to sell properties at higher prices in the future or earn steady rental income. The average return on real estate in Cyprus reaches 7% annually, outperforming Mediterranean competitors like Greece, Italy, and France.
The Effect of the Tourist Industry
Cyprus has the longest tourist season in the region, benefiting landlords. Properties near coastal areas, business districts, or in Nicosia are in high demand for rentals.
Tourism is the backbone of Cyprus’s economy. Investing in hotels, whether existing or under development, is a promising and logical choice. The market offers a wide range of tourism-related properties, including private villas, apart-hotels, and resorts with modern infrastructure.
Cyprus Tourism Today
The COVID-19 pandemic severely impacted Cyprus’s tourism industry, but the sector is now recovering rapidly. Tourist numbers are growing, making the industry profitable and sustainable, with returns reaching 7% annually.
However, the war in Ukraine has driven up building material costs, affecting coastal land prices and potentially impacting investors’ balance sheets.
Conclusion
Investing in Property in Cyprus offers significant opportunities for financial growth and stability. With rising property values, high rental demand, and a thriving tourism industry, Cyprus remains a top choice for long-term investments. Whether you’re looking for a holiday home, rental income, or permanent residency, now is the time to act.
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