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Cyprus Continues Increasing in Popularity with Foreigners

Cyprus Continues Increasing in Popularity with Foreigners

Real estate market in Cyprus thriving as an influx of international buyers snap property in Paphos and Limassol.
According to a report by PwC Cyprus, residential property sales to foreign buyers saw a 33% increase between 2016 and 2017, with Paphos and Limassol emerging as favourite destinations for overseas investors. Together, Paphos and Limassol accounted for 70% of foreign property transactions last year, with the majority of buyers (66%) opting for apartments in Limassol and villas in Paphos.
In general, Cyprus’ residential property market witnessed sales increases of 24%. Famagusta experienced the biggest growth, with a rise of 44%, followed by Nicosia  (42%) and Limassol (36%). The report highlighted that the country has one of the highest home ownership rates in Europe and that there is “a significant overseas market for holiday and second homes”. With the value of new building permits leaping by 49% across the island and the International Monetary Fund forecasting growth of 2.6% for 2018, findings from the report suggest this may be a good time to invest in property in Cyprus.
GDP also increased by 3.4% in 2017 and tourism was up by 14%.  
 
Limassol in the spotlight
Upmarket and popular tourist destination Limassol has seen rents skyrocket by around 25% over the past two years. Real estate consultant Antonis Loizou revealed that an average two bedroom flat now costs €500 a month, compared to €400 in 2016. Speaking to the Sunday Mail, he said: “If we’re talking about flats near the coast, add another 30% to these prices.”
In addition to increased demand, new hotels are being built and there are plans for a casino. Limassol is also home to shipping and Forex companies and international banks – all draws for foreign buyers looking to settle on the island. Loizou noted that the citizenship-for-investment scheme, otherwise known as the Golden Visa, has also had an effect on the rental market. Other countries such as Portugal have adopted a Golden Visa scheme, where foreign investment qualifies buyers for residency and the right to travel freely within the Schengen Zone.
 
How to buy property in Cyprus and Europe
If you would like to speak with a European real estate expert about your investment opportunities abroad – or if you’re seeking a holiday home or permanent residence overseas – Ideal Homes International is an excellent place to start. Plus, with the Pound strengthening significantly against the euro, now really is the time to take action and turn your dream of being an overseas property owner into reality.
Speak to our team for lots of free advice about destinations, mortgages, tax and the legalities of relocating or investing abroad.
 

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