Key Factors Affecting Real Estate Market in Cyprus
The real estate industry in Cyprus has had a considerable impact on the country’s international profile as an attractive investment destination.
A key catalyst for the creation of the island’s favourable investment climate has been factors such as the attractive tax regime, a high standard and low cost of living, excellent infrastructure including an outstanding telecommunications network, strategic geographic location, a politically stable and safe environment, Mediterranean climate, highly skilled and well-educated workforce, a legal system based on English common law to name few.
The government’s efforts in drawing foreign investments also resulted in success. Various government incentives, including the Cyprus Investment Program and the Residency by Investment program, which allow non-EU investors to apply for Cyprus citizenship or permanent residency, keep drawing foreign investment.
A New Metropolis with High-Rise Buildings: Limassol
The key factors mentioned above have provided the necessary push for the island’s commercial and residential real estate market, which has increasingly gained momentum in recent years. Aside from the meteoric rise in building activity and the rapid expansion occasioned by infrastructural and construction projects throughout Cyprus, the real estate market in the coastal city of Limassol has witnessed phenomenal growth. It is evident from an impressive multitude of modern high-rise buildings which have systematically altered the city’s metropolitan skyline. The rapid evolution of Limassol has not only maintained and reinforced its long-held reputation as a popular holiday destination but has served to transform this cosmopolitan city into an important and vibrant commercial hub.
It is anticipated that the number of high-rise building projects which are currently underway will be duly completed within 2021 and 2022. There is a consistent and significant level of demand from foreign investors who will continue to pursue prime property opportunities as a viable investment vehicle.
Both foreign and local investors demonstrated increasing interest in investing in real estate in Cyprus, driven by a combination of factors that led to promising opportunities. At the same time, interest rates on bank deposits are negligible, while interest on loans is also relatively low, making investments in real estate a very sensible option, especially for local buyers.