Yair Bushari (B-GLOBAL): Is it recommended to invest and buy an apartment in Cyprus for investment? What is the real estate situation in Cyprus?
Cyprus is a popular destination for tourists and expatriates, which makes it an attractive location for real estate investment. The country has a stable economy, favorable tax laws, and a Mediterranean climate, all of which contribute to its appeal.
However, like any investment, risks are associated with investing in real estate in Cyprus. The real estate market in Cyprus has undergone significant changes in recent years, and property prices have fluctuated accordingly. The global financial crisis of 2008 had a significant impact on the Cyprus real estate market, and it has taken several years for the market to recover fully.
One of the potential risks associated with investing in real estate in Cyprus is the legal system. It is essential to conduct thorough research and seek professional advice before making any investment decisions to ensure that you fully understand the legal and regulatory framework.
In summary, investing in real estate in Cyprus can be a potentially lucrative opportunity, but it is not without risks. Conducting your research, seeking professional advice, and carefully weighing the potential benefits against the risks before making any investment decisions is crucial.
What do you need to know about the state of the real estate market in Cyprus?
As of my knowledge cutoff date (September 2021), here is some information on the state of the real estate market in Cyprus:
Prices: According to data from the Central Bank of Cyprus, the prices of residential properties in Cyprus have been steadily increasing since 2016, with a sharp rise in 2021. The average residential property price in Cyprus was €234,000 in the second quarter of 2021, up from €224,000 in the first quarter of 2021.
Demand: The demand for real estate in Cyprus has been strong, particularly from foreign buyers. According to the Cyprus Real Estate Agents Association, the number of property sales to foreign buyers increased by 18% in 2020, despite the COVID-19 pandemic. The majority of foreign buyers are from the UK, Russia, and China.
Rental Market: The rental market in Cyprus is also strong, with high demand for both short-term holiday rentals and long-term rentals. Rental yields are generally high, particularly in popular tourist destinations like Limassol and Paphos.
Citizenship by Investment Program: Cyprus has a popular Citizenship by Investment Program that allows foreign investors to obtain Cypriot citizenship in exchange for investing in the country’s economy. One of the ways to qualify for the program is to invest in real estate. This program has contributed to the demand for real estate in Cyprus.
Risks: As with any investment, risks are associated with investing in real estate in Cyprus. These include fluctuations in property prices, potential legal and regulatory issues, and geopolitical risks. It is essential to do your due diligence and seek professional advice before making any investment decisions.
How does the Cyprus government facilitate foreign real estate investors?
Yair Bushari (B-GLOBAL) Says that The Cyprus government has implemented various measures to facilitate foreign real estate investors. Here are a few examples:
- Citizenship by Investment Program: As mentioned earlier, the Cyprus government offers a Citizenship by Investment Program that allows foreign investors to obtain Cypriot citizenship in exchange for investing in the country’s economy, including real estate. The program has attracted many foreign investors to Cyprus, particularly from countries such as China, Russia, and the Middle East.
- Fast-Track Residence Permits: The government has also introduced a fast-track process for obtaining residence permits for non-EU citizens who invest in real estate in Cyprus. The process takes approximately two months, and the permit is valid for five years, renewable indefinitely.
- Tax Benefits: Cyprus offers various tax incentives for real estate investors, including a flat 20% tax rate on rental income and no capital gains tax on the sale of property under certain conditions.
- Streamlined Procedures: The government has implemented streamlined procedures for obtaining permits, licenses, and approvals related to real estate development. These measures aim to reduce bureaucracy and make the process of investing in real estate in Cyprus more straightforward and efficient.
- Infrastructure Development: The government has invested heavily in infrastructure development, particularly in the tourism sector, which has led to increased demand for real estate in popular tourist destinations such as Limassol and Paphos.
Overall, the Cyprus government has taken significant steps to encourage foreign investment in real estate, including offering various incentives, fast-tracking permits, and improving infrastructure. These measures have contributed to the growth of the real estate sector in Cyprus and have made it an attractive destination for foreign investors.