Residential property in Cyprus continues to be in high demand, with 938 transactions completed on the island in April 2022, up 13% from April 2021. This is a 14-year high and the highest April figure since 2008, according to the country’s Land Registry.
The most stable sales are in Limassol, a major business, tourist and educational center. Following is Nicosia, the capital of the island, then the resort cities of Paphos and Larnaca, and Famagusta closes the rating. George Dokuchav, Commercial Director of Prime Property Group, explains the increased demand for Cypriot property and predicts how long it will last.
“Cyprus has always shown a steady growth in demand for real estate. More recently, there has been a surge due to the outbreak of the crisis and the aggravation of the geopolitical situation. Interest in buying a home remains high, residents of many EU countries buy housing in Cyprus. In addition, in recent years, the demand for Cypriot real estate has been growing from the Lebanese and Israelis.”
Property sales to foreigners are up 115% year on year. At the same time, sales to EU citizens grew by 118%, and sales to citizens of countries outside the EU – by 112% year on year (according to Cyprus Property News).
There is now an influx of foreigners from conflict-affected countries. There is no exact data on how many people flew from these countries to Cyprus over the past month, but they number in the thousands. Some of those who moved to Cyprus are employees of companies based or operating in other countries. Companies have suggested that employees relocate to Cyprus in an attempt to maintain the volume of operations and protect staff. Those who moved under the relocation program temporarily stayed in hotels, mainly in Limassol.
“The relocation of hundreds of people will have a positive effect on the Cypriot economy,” says George Dokuchaev, “Young people with a high level of education and professional work experience will be able to integrate into the Cypriot labor market. If these people stay in Cyprus, they will definitely need housing, which means that we will see an increase in demand for rent and, in the long term, for the purchase of residential property. If the companies that employ these people decide to continue their activities in Cyprus, then at a later stage there will be an increase in demand for office space rental – mainly in Limassol, where most of these companies are based”.
In the near future, Cyprus, in search of investment in real estate, will switch its attention to the EU countries, as well as Israel and Lebanon, experts from Prime Property Group say.
“The geopolitical conflicts in Eastern Europe have created a range of problems that will take years for the global economy to resolve. To avoid a hypothetical downturn in property demand, Cyprus will need to turn its attention to the West. We assume that there will be no decline in demand.
In addition, strategies with high rental yields continue to perform well and will attract more investors. Recall that over the past 5 years, rental rates in Limassol, in particular, have almost doubled due to business emigration in the digital sector.”
There are several projects in Cyprus with potential high rental yields and capital gains now. Many of them are at the initial stage of construction, which means that one can enter on the most favourable terms.
One of the objects worth paying attention to is Lake View. This is a suburban project of an affordable housing segment, a club format complex in a popular suburb of Limassol. On the territory there is a swimming pool, gym, parking. The apartments offer sea views and the city is just a 5-minute drive.
Another project is Rosa Dei Venti. This is a new architectural masterpiece in the loft style, which has apartments and penthouses, its own territory with a swimming pool and playgrounds. It takes a few minutes walk to the beaches of Limassol from here.
Another one of the premium, but attractively priced projects is The Heritage in Paphos. The complex with its own territory, two swimming pools and two playgrounds will be finished in the summer of 2022. From here it is only 600 meters walk to the sandy beach.
Premium real estate for Paphos is a rarity, and premium apartment complexes with services and within walking distance to the beach can be counted on the fingers
