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Is Buying Property in Cyprus a Good Investment? | BBF

Is Buying Property in Cyprus a Good Investment? Contact us for more information about flats and other properties.

How is the property market in Cyprus now?

Cyprus offers, today, peace and stability to investors

Cyprus has retained its status as a stable and attractive property investment destination because of its strategic position, favorable taxation system, and high standard of living. This enables steady market cushioning from the influence of sectors such as tourism and foreign investments that sustain the island’s economic recovery. Not only is Cyprus strategically located, but it also possesses a favorable tax regime, business-friendly environment, and quality of life.

Cyprus will keep growing in the next 5 years

It is anticipated that Cyprus's real estate sector will continue growing at a moderate pace for the next five years. The growth is mostly expected in urban areas and popular tourist destinations driven by factors like foreign direct investments and infrastructure development, among others. As a result, coast properties, particularly those found in famous tourist spots such as Ayia Napa, Paphos, and Limassol, are still selling hotcakes. These locations offer luxurious beachfront apartments and townhouses, while some of them have villas with breathtaking sea views which makes an investor to buy a property in Cyprus.

Cypriot business owners have a more favorable view of the economy

Business sentiment among Cypriot entrepreneurs is improving due to positive economic outlooks. In addition, the Business Consumer Index in Cyprus is rising, which indicates an increase in confidence levels within the leadership ranks. Therefore this occurrence might lead to higher levels of investments or consumer expenditure, thus further driving real estate growth. However, according to The Global Economy's report on the Business Confidence Index for Cyprus currently stands at 5, which may seem neutral, although it marks an important improvement over previous years

Cyprus is delivering fewer building permits

Some reduction has been noted on issued building permits in Cyrpus; thereby limiting availability for development of new units This could translate into rising prices for properties located in areas with high demand as competition tightens in the market. Municipalities throughout Cyprus registered a 2.8% decline in building permits for new properties, indicating a potential slowdown of new housing construction.

Stagnant property prices persist in Cyprus

Over the last few years, property prices have been quite stable in Cyprus, particularly in urban areas, and sought tourist places like Limassol and Paphos. This stability implies a well-balanced market with constant demand. For example, since 2020, there has been no change on property values of Nicosia and Famagusta cities, thus suggesting a market that is stable but competitive.

Cyprus' population is getting richer

The GDP per Capita growth rate is increasing in Cyprus, which indicates that people are getting richer. This can increase wealth by raising the demand for high-value properties that support such markets overall. The average GDP per Capita has risen by 8.8% throughout the last five years which demonstrates a growing economy along with the increasing buying power of inhabitants.

Rental yields are extremely high in Cyprus

A range from 7.1% to 9.8% shows that Cyprus has some of the highest yields globally. It means that significant returns can be achieved for rental properties as an investment option, while this also points out the good state of the rental market as they clearly indicate healthy rental income yields. The reason why Cypriot property owners enjoy excellent rental income yields is due to the robust demand for rented housing within metropolitan areas and tourists’ favorite spots.

In Cyprus expect a moderate inflationary effect

This will lead to a moderate rise around this country, which positively affects investment into real estate, increasing thereby the value of such investments and their rental incomes; at the same time, it will bring down mortgage debt`s real cost. Inflation will result in higher rents leading to increased cash flows from property in Cyprus investments.

Is it a good time to buy real estate in Cyprus, then?

Looking at these economic indicators and forecasting ahead, 2024 appears good time to buy property in Cyprus. As a result of stable economic growth, high rental yields, and increasing demand for properties, now seems like an attractive period to put money into the Cypriot housing market. Although there are potential threats, such as geopolitical issues and global economic fluctuations, the overall situation is still positive. This concludes that buying property in Cyprus is a good investment.

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