Why are people moving today?
A strengthening property market in Cyprus
The latest Residential Property Price Index published by the Central Bank of Cyprus shows that the Cypriot property market continues to strengthen following the Covid-19 pandemic. After years of difficulty, demand and prices have started to increase over the past couple of years. In the first quarter of 2022 the number of sales contracts rose some 24 per cent while the value of residential property grew by 0.7 per cent. Apartments have seen the biggest increase in value while Paphos and Limassol have led the way as the cities with the highest increase in value. Also of note is the fact that foreign buyers purchased 115 per cent more residential property during the first quarter of 2022 when compared to the same period in 2021.
Why is the Cypriot property market improving?
The increasingly bullish property market in Cyprus is based on several important factors. Firstly, as the economy stabilises following the pandemic, the domestic market has improved. Backed by a number of Government initiatives, an increasing number of Cypriots have opted to take the opportunity to move. As with many other markets globally, Cyprus has also been affected by the trend to seek more and better spaces to enable families to enjoy time together. Additionally, the efforts of the Cypriot Government to attract foreign companies to Cyprus is making investing in apartments for rental purposes an attractive proposition to Cypriots who are also looking at the property market as a potential hedge against global inflation.
The attractions of Cyprus to foreign buyers
Of course, much of the recent growth in the Cypriot property market has been fuelled by interest from international buyers. This is a primary reason for the strength in the value of apartments which offer great value as well as generally being more modern and better located near popular centres, especially around Limassol, which has experienced significant investment in its infrastructure and marina.
Cyprus has long been an attractive location for international buyers thanks to its wonderful Mediterranean climate, low crime rate and excellent healthcare service. For many years the Cypriot Government has also incentivised foreign property buyers through various financial and tax initiatives, including the opportunity to acquire EU citizenship.
While these benefits remain in place and continue to underpin the attraction of Cyprus to foreign buyers, the recent influx of new buyers have been influenced by other factors as well. Many people from the EU and elsewhere are opting to move to Cyprus today not only because the benefits Cyprus has always offered, including clean open spaces and a more laid-back approach to life, have become more appealing in a post pandemic environment.
A pro-active Government
In fact, much of the current interest is being driven by more recent developments, particularly a new proactive focus by the Government to attract new companies and workers to relocate to Cyprus. This drive to attract new talent to Cyprus is being led by Invest Cyprus, an independent, government-funded entity, which is aggressively promoting investment both in the traditional sectors of shipping, tourism, banking, and financial and professional services as well as newer sectors such as energy, film production, investment funds, education, research & development, information technology, and regional headquartering. The result is that attractive employment opportunities have mushroomed for anyone with talent and ambition.
Investment in property, infrastructure and leisure
The growing number of international companies who are choosing to relocate to Cyprus is creating a positive cycle which incentivises the private sector to further invest in property development and the general improvement in infrastructure and leisure and entertainment facilities to meet the needs and desires of new arrivals. Across Cyprus, but particularly, within the more popular coastal urban areas, investment in new, modern, well-appointed apartments, as well as in leisure and entertainment attractions including bars and restaurants, marinas and casinos have given a new vibrancy to many areas. This new lease of life, which is still well balanced with the relaxed, open, uncrowded and unspoiled spaces which the rest of the Cypriot landscape offers is proving to be a magic formula for the island.
The new importance of location
The location of Cyprus in the Eastern Mediterranean has always played a part in its attractiveness to foreign property buyers. In addition to the great climate, the ease with which both Europe and the Middle East can be accessed has always made Cyprus a strategic location for trade and travel. In a world of increasing instability and many regional conflicts both in Eastern Europe and the Middle East, the safety and tranquillity which Cyprus offers, coupled with its openness to foreign investors, has given the country’s location a new attractiveness.
Buying or renting property in Cyprus
Cyprus has a long history of attracting foreign property buyers and investors and remains a safe and welcoming country in which to invest. Today, there are even more reasons why people are choosing to move there as the country’s economy and infrastructure modernises while retaining much of its characteristic charm and hospitality. While this is inevitably driving demand for property, prices have increased in a sustainable way thanks to the increasing stock of modern, well-located housing stock and the growth in the number of domestic sellers who are also looking for new spaces in the post pandemic era. The result is that Cyprus still offers great opportunities for foreign property buyers to find their dream home or investment property at excellent value.
The current balance between supply and demand in the Cypriot property market also benefits those seeking to rent. Inevitably, many new arrivals in Cyprus will not be looking to purchase a property immediately but rather rent. This makes sense until people become familiar with their new surroundings and learn more about where they would prefer to live and until they are clear about whether their long-term future lies in Cyprus.
Throughout this process, the team of 11 specialists which currently make up the QuickLets team in Cyprus are here to guide you and help you find the best possible rental solution for you. With some 3,000 properties currently listed on the QuickLets website across the country, deciding to move to Cyprus today just became easier.