Cyprus Property Investment Economics

Cyprus’ EU membership 1 May 2004 had a resultant macro economic boost and provided an excellent opportunity for superior returns in the property market and here’s due to the Cyprus economy continuing to grow steadily and steadily expanded by 3.8% in 2008. In 2009 Cyprus suffered a slight recession of 1% in 2009 and is now looking at a forecast growth of 1% for 2010.

Cyprus Property Market

• "Over the last three years demand for property has increased by an average of 15% to 20% per annum. This will increase with EU membership as people from the landlocked central European countries, which are also destined to become member states, are expected to look for second homes on the island" (source: FT World Report)
  
  
• A falling interest rate environment. Now that Cyprus has fully adopted the Euro (1st January 2008) the interest rates have fallen in-line with the European Central Bank (ECB) rate of 1%.
  
  
• The law restricting foreign ownership of property to just one per person, is to be lifted in April 2009 following a 5-year transitional period. This will result in an increase in the demand for multiple property ownerships and will serve to drive up property prices and investor returns.
  
  
• There is a high demand for property from international investors, with Cyprus enjoying a particularly high demand from investors in the UK and Ireland along with the affluent Russian and former Soviet states. There is also a large investor demand from Greek Cypriots living in the UK and the US.
  
  
• Highly educated, English speaking and low-cost workforce will attract flows of capital from within the EU and other markets.
  
  
• 60,000 British ex-pats provide an attractive community for UK retirees and a dynamic demand for quality property in quality areas.
  
  
• All-year-round weather, increasing tourism and the levels of foreign direct investment (FDI) are all major drivers of economic growth, as well as appealing to many affluent buyers.
  
  
• Oil and gas finds off-shore will lead to phenomenal investment for the island, further enhancing and expanding the economy whilst also leading to increased property prices as demand continues exceed supply.

Personal Investment Strategy Meetings (ISMs)

As present and future economic events are the drivers of property markets and the resulting price changes, we, at InvestinCyprus.com Developers have set up a series of events with the needs of the individual investor in mind. Our Investment Strategy Meetings (ISMs) have been designed to assist any potential investor to develop a personally tailored investment strategy in conjunction with one of our property consultants.

The meetings are to facilitate easy access for any potential client that wishes to take up the offer of a free strategy meeting and have proven to be both very popular and beneficial for all concerned since their launch. If you would like any further details or to book an appointment for an ISM in your area please click here.