The Cyprus economy continues to thrive, exceeding all expectations and estimations. In fact, the Cyprus economy is one of the fast growing in all of Europe right now. Unemployment levels have reduced massively recently, the largest drop of any European country. An increase in permits for development shows that confidence in the property sector is continuing to rise and we are now seeing a great deal of interest from investors outside of the EU. Beneficial government schemes are certainly working to encourage foreign investment in property within Cyprus, and the draw of the island, from the pleasant climate to the high levels of safety, is making Cyprus an attractive proposition for both businesses and those looking to make Cyprus their new home. Property prices also continue to grow, making property investment in Cyprus a wise choice.
Why is the property market in Cyprus booming?
There are several key factors that have all played their part in this rapid growth of the property market within Cyprus. With employment levels high, many households now have an increased income, add to this the fact that interest rates on housing loans have fallen over the last few years, and we are seeing more people buying homes and upgrading their homes, taking the next step up the property ladder. With an increased demand for properties, more houses are being built, and this of course provides even more local employment.
Moving outside of the local area, we are seeing a great deal of investment from overseas, from countries such as Russia, China and the UAE. The government have issued some attractive incentives for foreign investors, and Cyprus is seen as a safe haven for these investors, a stable economy that they can trust with their investment. In addition, Cyprus is a good base for businesses due to its ideal location for export purposes.
Where is the growth most pronounced?
So many areas of Cyprus have benefited from this boost within the property sector. During the first half of 2018 sale contracts across the whole of the island increased by 24%, but the greatest growth was found to be in Famagusta with an annual increase of 72%. Nicosia and Limassol have also proved to be growing rapidly, and Paphos and Limassol are both highly popular with foreign investors. Currently, the highest levels of new developments can be found in Nicosia and Limassol so we expect those areas to continue to grow rapidly over the coming months and years.
Is this maintainable?
It’s all looking very good for Cyprus. With an upgraded credit rating, Cyprus has now lost it’s ‘junk’ rating and is classed as ‘investment grade’. This is bound to increase confidence with investors, and with around 70% of property sales in Cyprus already coming from non-EU buyers, this could have a huge impact. With an increasing market for properties, and a willing and able local workforce, employment levels are also likely to increase even further.
Want to learn more about property investment in Cyprus?
If you’re interested in discovering what we have to offer with regards to investment properties on this beautiful island, then take a look at all our latest projects.