Cyprus is an ideal place to make a profitable investment.
Unlike most European countries and the Middle East, this region demonstrates confident and stable development.
Local experts are convinced that 2021 is a great time to invest in Cyprus property.
Buying real estate has always been one of the highest priority and stable investments. If we accept this approach as correct for any period of time, then right now investors have an excellent opportunity to profitably invest their funds in housing on the island. The main reasons are the combination of macroeconomic, medical and political data that is shaping an unprecedentedly favorable picture of the housing market, say real estate experts.
But let's look at this situation in more detail, based on official data, and not on the strange times of the coronavirus period.
Market prices remain stable
Despite all the difficulties, market prices for housing in Cyprus remain quite low. According to the latest data from the European Statistical Office, property prices in the country have fallen by more than 5% over the past year. Moreover, this happened during the growth in property prices in other European countries by more than 17%.
However, it should be mentioned that due to the sharp rise in prices for building materials within the last 6 months, there has been a gradual increase in the cost of housing. There is no doubt that the difference in price will ultimately be borne by the average consumer. And this proves once again that buying real estate today is the right decision for those who are thinking about investing in housing.
ECB Keeps Interest Rates Low
The second favorable criterion is related to the policy of the European Central Bank (ECB) and, therefore, to the level of mortgage interest rates. ECB policy supports credit expansion as a way to restart the economy. This means the zero interest rate (Euribor), so the only interest rate the borrower will pay today is the interest rate of the commercial bank with which they will work. However, even in this light, Cyprus is one of the better options in Europe, since the average mortgage rate on the island is about 2%, while it already reaches 2.9% in Greece and exceeds 3% in Malta.
It must be said that the ECB's policy influenced the deposit rates. Many European commercial banks are already introducing negative deposit rates (that is, charging their customers a fee for keeping money). This policy will soon be applied in Cyprus.
The main reason for the growth in savings among the population is a lockdown, during which many were able to save money. These savings can be a tool for improving the financial situation of those people, if they are properly invested. In other words, invested in the purchase of real estate.
The government of Cyprus provides subsidies on mortgage interest rates for residents of the country. The purpose of this plan is to support households that have taken out or are preparing to take out a home loan. Those who have a mortgage rate of less than 2.3% and a loan size of 300 thousand euros will be able to use it. The subsidy is valid for 4 years and covers up to 1.5% of the rate.
All these factors lead to the conclusion that anyone who intends to buy property in the future should do so now. In fact, it is impossible to imagine that at one point in time there could be a more favorable configuration of factors than what we are seeing now: prices are low, interest rates are approaching zero, and the state subsidizes most of the final payments at the interest rates that the borrower will pay.
So, those who saved money during the pandemic have a very good way to make it work tomorrow.
You can find profitable options for buying real estate in Cyprus on the DOM Real Estate Portal. The website also has a large number of rental properties - from residential to commercial real estate. Choose and contact professionals who will help you make the right choice!