What has created and increased the demand for real estate investing is the decline in prices due to Cyprus economic crisis, the decline in interest rates on deposits and loans, the interest of foreigners in obtaining citizenship and residence in Cyprus, the increase in tourism, government incentives and the exchange of real estate for the repayment of debts.
Despite these factors, services, construction, and commerce have been benefited as well, since more jobs have been created, unemployment has reduced, and more money entered the market. Although the increase in house demand has raised rents.
Last year was one of the best in recent years concerning sales and investment in real estate, focusing on the tourism industry, selected investments to obtain a Cypriot passport, selling used homes and apartments in urban and nearby areas. There was also interest in buying real estate in prime locations for large investments and land plots.
The economic growth encourages depositors to invest part of their money in real estate since their deposits do not pay interest. Moreover, the possibility of securing low-interest loans attracts more buyers to invest in real estate.
It is important to mention that, investing with caution in real estate through equity instead of loans, has created a healthier and controlled property purchasing by giving more value to properties and avoiding the past economic issues.
It is a fact now, that investing in real estate is safer and more stable regarding the problem of lack of ownership titles or the long delay in their issuance.
However, a prospective purchaser, before proceeding with the purchase of a property, must determine its legal and natural situation, liabilities or burdens and the tax obligations of the seller and the property.
The increase of property market had a positive effect in the implementation of major development projects in various sectors, such as marinas, shopping centers, mixed developments, multistorey buildings, the use of new technologies and design innovations that promote the development of Cyprus, attract new investors and increase the country's competitiveness.
The success of recovering the property and enhancing its credibility requires the professionalism and attention of both the private and the public industry to avoid mistakes of the past. The goal should be long-term growth and the real estate industry is one of its pillars, along with low tax rates, high quality of services and the quality of life offered by Cyprus.