Property demand and prices
Investing in real estate in Cyprus is worthwhile for foreign and local investors for all types of property. The reduction in the prices due to the economic crisis, the decrease of deposit and loan interest rates, the interest of foreigners in obtaining Cyprus citizenship and residency, the increase in tourism, government incentives and the exchange of properties for the repayment of debts constitute some of the main factors which have gradually created and increased property demand. At the same time, other sectors have benefitted, such as services, construction and trade, while job openings have been created, unemployment reduced and money brought to the market. There is also an increase in the demand for housing, which increases rents. Investment funds and asset management companies are present, they purchase from the banks mortgaged properties relating to non-performing loans. This growth in real estate demand causes increase in property prices.