Once a place of financial woe, now this little island country is bustling with commerce and high demand with real estate investors. During the financial crisis that peaked in 2013, Cyprus was at the end of its rope, but within three years’ time, the island country bailed itself out and is now experiencing a financial boom. Here are few property sales trends of 2019 in Cyprus.
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BETTER ECONOMY, IMPROVING REAL ESTATE MARKET
The Cyprus economy and real estate market have stabilized and are improving. Home sales increased by 46% in February, and in March sales rose by 29%. In April, sales transactions saw a 29% increase. According to the Land Registry Office, in May, property sales increased by 23% compared to a year ago.
OPTIMISM AND APARTMENT PRICES GOING UP
This optimism is fueled by its burgeoning property market with a number of new residential projects underway and more in the planning stages. The prices of apartments rose by 7.4 percent in a year. This is good news for current and future property investors.
PRIME AND ULTRA-PRIME ON THE RISE
Talk of the island isn’t just about how cheap you can buy a property in Cyprus. Prime and ultra-prime developments are also underway and in the pipeline. These ultra-prime developments are targeting high net worth buyers from all over the world. Buyers are now more often foreigners than Cypriots. It’s unchartered land for real estate investors in search of high returns and beautiful property. The tax advantages and dual citizenship perks are just a few things that attract foreign investors.
The influx of foreign buyers may be due to the Cyprus government’s granting of “golden visas” to those who invest in Cypriot real estate. The golden visa is a way to gain citizenship by investment and a way to travel freely to over 100 EU countries. Even non-EU citizens qualify for these EU passports. This has attracted around €4 billion worth of investment since 2013.
This is how it works: If you buy property of €300,000 (£264,000 or $341,866) value, you get residency. If you are a non-EU citizen and buy €2 million worth of property, along with a promise not to sell for three years, you get an EU passport.
Therefore, the Cyprus economy is burgeoning because of this influx of well-heeled investors as well as tourists who come to rent homes, apartments, and condominiums.
PROPERTY PRICES INCREASING
Limassol, as well as Larnaca, are experiencing a hub of activity in the property market. Property prices increased about 14 percent in the last year due to a surge in demand.
Property prices are still surprisingly affordable and this is one of the main reasons that real estate investors flock to Cyprus as well as its stunning beauty. Property prices are around €1,300-1,800 per square meter. Even though rental returns are moderate, the low prices make up for this. An apartment with 120 square meters may cost around €700-€800 per month to rent in Larnaca.
Currently, there are around 30 luxury residential projects with commercial space and leisure amenities underway in Cyprus. Prices in Limassol usually start out at €750,000 for a two-bedroom apartment, and most of them have ocean views. Some villas even have private moorings for yachts. This is a rare luxury in the Mediterranean.
Larnaca is experiencing a housing boom, too. A number of successful large-scale developments have been or are underway. There are plans for even more in Larnaca including shopping malls and hotels.