Buying property in Cyprus, either as an investment or as a second home, is a popular choice among investors.
Cyprus offers a unique combination of high quality of life, family safety, continuous sunshine, natural beauty, ease of doing business and investment incentives.
The real estate property market has always been one of the backbones of the Cyprus economy. This sector, among other economic sectors, has shown remarkable growth in the last years, resulting in increased demand and activity levels, many significant property investment projects, and government incentives.
After growing by 3,9% in 2017, the Cypriot economy sustained its GDP growth rate during the fourth quarter of 2018 estimated at +3.8% over the corresponding quarter of 2017. Cyprus’ impressive annual GDP since 2013, is stabilising at almost twice the EU average of 2,2%.
Real Estate activity continued growing in 2018, with Contracts of Sale showing an increase of 21%. Limassol had the main share (37%) of the market, while Famagusta had the biggest increase (+37%) in sales.
Non-nationals in 2018 bought 103% more properties, reaching a 48% share of the overall market. This is related to the government incentives mainly the Cyprus Citizenship by Investment programme, which gives the opportunity to foreign investors who proceed with property investment in Cyprus to get the Cyprus passport. The Cyprus Investment Programme starts with the basic requirement of purchasing residential properties of 2 million euros or commercial properties of 2.5 million euros. From the 15th of May 2019, the program requires an additional 150.000 euros donation to the government. The said property investments can provide immediate returns, if ready to be delivered properties can be rented or if under construction, they can provide significant capital appreciation.
Cyprus Investment Programme benefits the investor with travelling to over 170 countries visa-free. Also, citizenship is passed to new generations.
Other main growth drivers for both the economy generally and the property market can be the construction of the biggest Casino resort in Europe, and the discovery of natural gas and oil reserves in Cyprus Exclusive Economic Zone.
The luxurious integrated casino resort will be of international standards; including a hotel (beyond the requirements of a five-star ) with at least 500 luxury rooms, 136 gaming tables and 1.200 gaming machines. The construction process has already started, and it is expected to be completed by 2021. It is estimated that it will contribute €700 million/year (4% of Cyprus’ annual GDP).
In relation to the gas and oil, the government signed contracts with the energy giants Exxon Mobil, Qatar Petroleum, Eni and Total, for explorations in the Exclusive Economic Zone of Cyprus. Natural gas has already been discovered in Block 12 by Noble Energy.
Cyprus has also the potential to be a connection hub between middle east, Asia and Europe and it is being compared to Dubai. Cyprus location is ideal as it is the point where Europe and the Middle East merge, just three hours from Moscow and within also 3-4 hours from central Europe.
Property investment in Cyprus grants the security of a market which is on the rise together with other incentives and prospects.
Our specialised Cyprus Property Investment team can offer you advice in obtaining Cyprus citizenship by investment. With over 35 years of experience, we can offer you guidance to ensure you get the best possible value and benefits in return for your investment.