It is evident from the improved fiscal indicators that the Cyprus economy is slowly entering a path of recovery, with the recession being contained at lower levels than originally projected. In 2014 the economy contracted at a lower pace than expected and projections from both the Troika and the Government indicate that in 2015 the economy will begin to experience growth.
The Real Estate In Cyprus continues to experience some declines in both property prices and rental rates. However, these are being constrained at minor levels and signs of stability are evident in certain areas. To this end, the significant increase of 20,18% in sales deeds during 2014 compared to 2013 is a strong sign that the market may be starting to stabilise. At the same time, a reduction of 7,64% in the number of building permits issued might suggest that construction activity will remain in a declining trend in the short-term. Moreover, there has been a decrease of approximately 25% from 2014 to 2013 both in respect of the value and in square meters of building permits in Cyprus.
It is important to state that the ongoing situation in the Cyprus banking sector adversely affects the ability to finance the real economy and potential real estate projects. Despite the significant progress made in relation to the restructuring of the banking sector, the means of dealing with the high percentages of Non-Performing Loans (‘NPLs’) is one of the major challenges that the banking sector faces. It should be noted that a substantial portion of the loan exposure relates to the real estate and construction industries.
The Government has taken significant steps in stimulating the industry, such as the promotion of large-scale developments, including the much-awaited casino that is expected to be licensed in 2015.
In February 2015, an important agreement was reached between Cyprus and Egypt that enhances cooperation in the field of oil and gas and, in particular, in the development and exploitation of the Cypriot ‘Aphrodite’ gas field in block 12 of Cyprus’ Exclusive Economic Zone, utilising existing gas infrastructure in Egypt for the mutual benefit of the two countries.
The signed Memorandum of Understanding authorizes the Egyptian Natural Gas Holding Company (EGAS) and the Cyprus Hydrocarbons Company (CHC) Ltd to examine technical solutions for transporting natural gas, through a direct marine pipeline, from the Aphrodite field to Egypt. Following this, in March 2015 EGAS and CHC signed a Memorandum of Understanding in relation to the examination of such technical solutions.
It is believed that the real estate market in Cyprus will follow track on projected economic growth starting in 2015. This will be further enhanced by the availability of financing from local banks following a completion of their current restructuring and recapitalisation efforts.
The great natural environment of beaches and mountains, the highly developed infrastructure, the growing tourism market, the low property tax and the climate, make Cyprus ideal for property investment. Added to this, is the benefit of obtaining the Cypriot citizenship as a result of such or similar investment.
WHY US ?
✓ Stage payments over the building period with 5 year loan option on possession.
✓ Fully supported process using expert builders and suppliers
✓ On site management company
✓ Stunning sea and mountain views
✓ Leading property developer in North Cyprus