The real estate industry is an important part and good indicator of the state of whole island's economy.
The island's government is guided by the idex of the real estate industry when planning the budget. The developers closely monitor the ratio of built and sold projects, not forgetting the level of their profitability. And yes, 2022 did not disappoint the realtors of Cyprus.
According to the Department of Lands and Surveys, the first eight months of this year were the best period for the housing sector in the last fourteen years. This was influenced by three main factors: the end of the COVID lockdowns, the EU economic recession and the events in Ukraine.
Cyprus has always been popular with foreign businessmen. Low taxes, favorable investment regime, the opportunity to obtain a residence permit always attracted investors. Favorable economic indicators and government programs encourage company owners to relocate to the island.
We are talking not only about IT specialists, but also entrepreneurs from various fields of activity. A number of Russian companies, in order to avoid the consequences of international economic sanctions, are moving their offices to Cyprus. The result of such transformations was a noticeable increase in sales of real estate in the premium segment, which included both apartments and villas.
The demand for office real estate has increased, primarily in Limassol and Larnaca, as well as in Nicosia. Quite often, offices began to fall into the category of 'shortage'. This was affected by the decline in construction of commercial facilities during the pandemic. Having assessed the current situation, companies seeking to win their market share and not lose profits began to show their interest in land plots. The goal is extremely transparent - the construction of business centers and the creation of appropriate infrastructure.
Foreign employees of companies that have relocated to Cyprus and people fleeing the military conflict in Ukraine are forced to look for rental housing in different price categories. This caused a huge demand and, as a result, a significant increase in prices in the rental market, where the following rule applies: the rising cost of rent leads to the higher prices in the sales sector.
By the way, another reason for this trend was the rise in price of building materials, on average by 17-20%!
A big number of investors have appeared who want to earn money in the rental market. Investors paid their first attention to finished housing, including secondary housing. The most demanded were apartments located in the center or within walking distance from the business centers of Limassol and Larnaca, where it is easiest to rent out your square meters.
Permanent residence for non-EU citizens
The Cyprus real estate market is international. Citizens of many countries show their interest in the island's real estate. According to statistics, sales this year to foreigners (non-Cypriots) increased by 76%. However, if earlier investing in holiday apartments was natural and regular, today the situation has changed.
The number of clients looking for houses and apartments in order to get the local residence has increased. The most popular are new apartments in the price range of 300-600 thousand euros, which can be bought to get the residence permit.
Cyprus provides a similar status not only to the applicant, but also to their family. Citizens of post-Soviet countries traditionally prefer Limassol and Larnaca. Citizens northern European countries (primarily the UK) are interested in real estate in Paphos in order to avoid the "cold winter". The most intense traffic in this city in recent years is dictated primarily by the sale of high-end cottages and apartments.
Real estate experts argue that buyers tend to use their financial resources during a period of high inflation.
It is absolutely natural that the citizens of Cyprus have begun to invest their savings in square meters much more actively: the lion's share of residential real estate in the country is liquid and is steadily increasing in price. Cypriots mainly buy houses or apartments in the segment up to 300 thousand euros, as well as land plots for individual development.
At the moment, the Cyprus housing market is very active.
The leading positions in the acquisition are occupied by apartments in coastal cities. For other types of real estate, a stable growth in sales is also observed. Stimulation of demand, among other things, is associated with the restart of the market after the covid lockdown. Prices are rising and there are no clear prerequisites for a change in this trend in the short term. This means that the developers of the island can explore new architectural horizons without fear.
Interested in housing in Cyprus? Visit DOM! The agency's website has the largest real estate database in the country - more than 30 thousand residential and commercial properties throughout the island! Here you will find information about the latest development projects. Choose and contact professional boxers who will help you make the right choice!
- The best residential family gated complexes in Limassol
- GESY General Health Care System in Cyprus
- School close to home: options for buying property near the most popular educational institutions in Cyprus
- Digital Nomad Visa: how to become a digital nomad in Cyprus?
- How profitable is it to rent an office in Cyprus?
- TOP 10 new buildings in Cyprus due for completion in 2022