The Economic and Real Estate Outlook for Cyprus is Bright
Cyprus is an island that is situated in the Eastern Mediterranean and a crossroad point of three major continents Europe, Asia and Africa. This unique geographical position of Cyprus in conjunction with the very favourable taxation regime, the very agreeable climate and the advanced infrastructure and services have established Cyprus as an ideal location for Banking, Forex and Trading, Tourism, Marine and Shipping, Corporate Services, Real Estate Investments and recently Energy.
As early as in 2001, the economy of Cyprus was classified by the World Bank as a high-income economy, and during this same time it was included by the International Monetary Fund in its list of advanced economies.
While Cyprus was faced with some difficult economic currents between 2011 and 2014, it has recently turned the corner and managed to return to growth in the first quarter of 2015. Put differently, after an unprecedented banking collapse, within only three years, the Cypriot economy has managed to do what it has done many times in the past, to reach growth and strength within a short period of time after a major economic disaster.
With strong signs that both the global and local economy are gaining steam, the real estate sector is predetermined to start growing again soon. Growth is inevitable because both the supply and demand factors are going to force it to happen. The economic recovery in other parts of the world, will force the short-term and long-term demand for second homes (overseas demand) to gain speed even further in Cyprus. Furthermore, given the more recent good news about the local economic recovery, the real estate demand from locals is going to move from gradually trending higher to rising at significantly higher speeds (this is in fact the more recent empirical evidence). When you add on the top of all the above the economic benefits of the newly established energy sector, which are expected by many to be very substantial for its economy, then you can easily project that the local real estate demand in Cyprus is expected to rise considerably in both the short-term and in the long-term. With all the trends pointing to strengthening real estate demand and given the limited supply of land in the major hubs, the real estate sector in Cyprus has a bright future in the short-term and even brighter in the long-term.
It is also paramount to highlight that the recent large discovery of oil and gas in Cyprus Exclusive Economic Zone, both discovered and undiscovered, is not only going to help the Cypriot economy to grow faster but it will also help the economy become a substantially more stable and diversified one as compared to current conditions.
Cyprus property prices point to an accelerating growth, according to the THIRTIETH edition of the RICS (Cyprus) Property Price Index.
Sun, 3 Sep 2017