Originating in China, recent months have seen coronavirus spreading globally with the World Health Organisation declaring a pandemic. As the virus grips Europe and the World, many wonder what will be the outcome for Cyprus and its economy. Those involved in real estate, either buying, selling or developing wonder how the effects of the virus will impact the sector.
Prior to the outbreak, Cyprus boasted a booming real estate sector with local and foreign investments. The real estate sector was set to have another successful year, but what is the outlook now?
Backed by a pre-existing strong economy and paired with government aids and precautions the Cyprus real estate sector will remain ever-resilient in this period. How so?
Financial Stimulus for Business
Cyprus has previously proven resilient in times of difficulty with the economy emerging stronger than ever before. Due to this strong economy, the government of Cyprus is capable of providing funds to support businesses and workers without moving finances from another area or incurring debt. The finance ministry is working and finalising on an economic support package which is said to amount to 1.5 billion euros, 7% GDP. This figure is separate from any support or schemes that may be available from the European Union.
Finance Minister Mr. Constantinos Petrides commented “I am convinced that we will succeed…as I have said….we have had more difficult times”
Mr. Petrides added “The government will support the economy, support the workers and support the businesses with concrete and practical measures”
As mentioned above, the package will aim to support businesses, entrepreneurs, and employees through subsidies and will also involve tax-breaks and grants through different ministries. With this support in place and a community spirit among locals, the people and businesses of Cyprus are prepared to not only get through this period of difficulty but to come out stronger than before.
Strong Investment Program
Cyprus has a long-standing competitive investment program that continually supports economic growth, investment, and real estate development. The program allows those who invest 2 million euros into Cyprus real estate to gain a Cypriot passport. This program has and will continue to play a role in providing significant funds for the economy that in turn provide benefits for the country overall.
People are drawn to the Cyprus Investment Program for various reasons. One of the many beneficial factors is the favourable tax system and the low cost of running a business in Cyprus.
Following the worldwide economic effects of the coronavirus, this benefit will be even more widely sought after by those looking to relocate or set up a business. Due to this, Cyprus expects to see a steady, if not growing number of applicants during and following this period of the pandemic. The flow of applicants will result in continual construction and the possibility of new businesses in Cyprus that create more job opportunities for the international workforce that the island boasts.
Future of the Real Estate Sector in Cyprus
As the global pandemic continues it is expected that the predicted growth for this year will unavoidably be affected. However, due to Cyprus’ existing strong economy and swift government measures, the extent of the effect can be successfully limited.
Following the end of restrictions on travel, the tourism sector will most likely greatly benefit by those who will be eager to travel and rebook holidays to the island. SkyPrime will be committed to meeting the heightened demand for accommodation by offering a variety of luxury seafront villas that are ideal to purchase in view of letting out to holidaymakers.
With the expected bounce-back of the tourism sector and a steady investment program, the real estate sector is capable and prepared to emerge stronger than ever, following this period, as the case proved to be during many crises before.