After its economic collapse Cyprus is now emerging as one of the best destinations for value property investing

August 17, 2017

After its economic collapse, Cyprus is now emerging as one of the best destinations for value property investing. The government is working hard to attract foreign investments offering generous incentives including Cyprus permanent residence permits and even EU citizenship. There is now a genuine interest in promoting innovation and entrepreneurship and in attracting direct foreign investment. Government bureaucracy is being curtailed and procedures streamlined to reduce delays and costs. 

Overseas interest in the Cyprus property market strengthened

Overseas interest in the Cyprus property market strengthened in May to become the 6th most sought after destination in the Top of the Props index published by TheMoveChannel.com.

Foreign buyers returned to the island’s property market at the end of 2016, with enquiries rising 22% in the second half of the year. Buyers are now showing signs of returning in greater numbers. In real terms, enquiries for Cypriot property rose by more than 50% in Q2 2017 compared to Q4 2016. The country accounted for 3.03 per cent of enquiries, its highest share in two years. “Foreign demand for Cypriot real estate is showing signs of strengthening again in 2017,” commented TheMoveChannel.com Director Dan Johnson. “Interest climbed in the final months of 2016, possibly fuelled by buyers racing to beat the deadline for a Capital Gains Tax incentive at the end of the year. “Interest softened at the start of 2017, but enquiries have grown once more in March, without the impetus of the tax deadline. With prices bottoming out and climbing across almost all regions, according to multiple indices, conditions in the island’s market are certainly improving, which is beginning to bring back investors. “The island’s Golden Visa scheme is also helping to drive recovering demand, with buyers on TheMoveChannel.com particularly interested in citizenship investment opportunities.”

Cyprus economy Growth rate close to 3% in next two years

The growth rate of the Cyprus economy will be slightly less, but close to 3%, Finance Minister Harris Georgiades said, adding that this growth on the back of a 2.8% rate in 2016, is more sustainable than ever before, as it is not fuelled by public spending or irrational credit expansion. In his speech at the 7th Nicosia Economic Forum, sponsored by Alpha Bank, Georgiades said that the government is determined not to allow the repetition of the mistakes of the past, adding that the right mix of fiscal consolidation and encouraging economic and investor activity with tax and other incentives is the most important element that led to economic recovery and the highest growth rates in the euro area.

Cyprus heading for a new record in tourism in 2017

A significant new increase of 23.9% was recorded in Q1-2 2017 as revenues from tourism, according to the Statistical Service of the country. In particular, based on the results of the Passenger Survey, revenue from tourism in Q1-2 2017 recordesg an increase of 23.9%. This is the 23th month that recorded an increase in tourism revenue, on an annual basis. 

Source: cyprus4properties.com