According to several recent reports the real estate market and economy in general have started showing very positive signs of growth. The most recent RICS Property Price Index Report states that Paphos has been one of the strongest regions of Cyprus with an average price increase of 1.77% on residential houses in 2016. Limassol also saw a steady rate of growth, 1.4% on average; and there was an overall growth of 1.6% for holiday apartments throughout Cyprus.
Rental values have also increased across Cyprus by 0.7% for apartments and 3.3% for houses. The average ROI for rental property now stands between 3-4% per annum.
Following the 2013 economic crisis, both the economy and real estate market finally appear to be stabilizing. KPMG’s recent report notes that 2016’s growth is a primary result of the government’s Citizenship by Investment scheme with has now been successfully running for a number of years, generating a lot of new income for the country.
In the first two quarters of 2016, the total number of property sales increased by over 28% in comparison to Q1 and Q2 in 2015. Tourism, financial services and real estate account for nearly 80% of Cyprus’s GDP, so a rise in the property market will have a great effect on lifting the overall economy.
The market in Cyprus certainly now seems to have bottomed out in most area’s, meaning that there has never been a better time to buy, with great potential for future capital appreciation. We predict further price rises in 2017.
Cyprus remains the fastest Citizenship by Investment programme in Europe offering investors a second passport within just 6 months following a real estate investment at €2m. Dependent children up to the age of 28 years old can be included under a family application and grandparents can also be included for just an additional €500,000. The real estate investment must be held for 3 years, after which investors only need to retain a residential investment of just €500,000 for the future. As Cyprus is a full EU member a passport here will enable one to live, work and study in any EU country, currently still including the UK.
For more details on this scheme, please contact our specialist consultants today for further advice.