Many potential property investors put their plans on hold in 2020, as the world dealt with the rise of the COVID-19 pandemic. With the global vaccine rollout moving along with varied success, and life slowly returning to normal, we are faced with new anxieties.
Not only do we have to reacclimatise to our social and work life; We have to re-examine the dreams we set aside a year ago, when we grappled with uncertainty.
Does our future planning need to be revisited completely; or does Cyprus still offer a viable property investment opportunity?
It goes without saying that there was a decrease in demand because of the pandemic. Investors were hesitant. There was a global rise in unemployment and a multitude of projects that were in development came to a halt, slighted with significant delays.
Despite the prevalent economic issues, however, the Cypriot real estate market is slowly improving with clear signs for a positive future. Cyprus still ranks high as an attractive destination for both tourism and development because they have kept recession at a level that is lower than the EU average.
Significant projects worth hundreds of millions of Euros that were delayed are still being developed. These will bolster the surrounding territories and make real estate investment optimal. In fact, Real Estate and Construction contributed 17% to the Cyprus GVA (Gross Value Added) in 2020, showing its strength and resilience.
Interest merely simmered; it wasn’t extinguished, and the Cyprus real estate market is returning as the most popular form of investment.
The consensus among experts is that the real estate market in 2021 is expected to make a positive turn, as the government finds new ways to secure foreign investment and the uncertainty surrounding COVID-19 starts to lift.
Paphos, in particular, is expected to fare well. They managed to maintain the island lead with foreign sales in 2020, despite the pandemic. In September and October 2020, Standard & Poor (S&P) and Fitch affirmed Cyprus’ rating of BBB- with a stable outlook, respectively. S&P predict the country’s economy to fully recover by the end of 2022.
Why the rise of confidence?
It is less about what has changed, and all about what hasn’t changed.
- Cyprus still boasts one of the best geostrategic locations in the world – with the ideal position for doing business on three continents.
- Its property prices are lower than many European countries.
- They have a positive tax system–the lowest in the EU, with a large offering of exemptions on foreign exchange and Overseas Permanent Establishments.
- Their low cost of living enables an improved quality of life.
- Low crime rate. Excellent medical facilities, education and offshore business advantages.
- Not to mention unrivalled aesthetics and over 300 days of sunshine every year.
Without undermining the importance of proper planning, demand is set to rise, which will make properties increase in value. The time is right to dust off those property investment plans and get back into the market.