Cyprus has seen great success in real estate development and sales in 2018. With a number of investment upgrades and support from the Cyprus Investment Program, the market has flourished in 2018 – but what does 2019 hold for the Cyprus Real Estate Market?
Investment and Demand for Cyprus Office Premises
Traditionally the Cyprus property market is dominated by residential developments. However, Cyprus has attracted a number of international business that recognises the potential of setting up a business abroad. Due to this factor and the expanding economy, in general, the increase for office premises has skyrocketed. Development companies focus on the construction of office facilities with Grade A offices appealing to investors and the prime yield reaching 5.5% in 2018. In 2019 the Cyprus economy is expected to continue accelerating, with a 3.2% growth predicted in 2019, ensuring investment in office developments.
Following this increase in business, in turn it has led to the increase of employees, figures released by Eurostat for November 2018 showed that the unemployment rate in Cyprus has shrunk to 9.2% – which means the unemployment rate has almost halved over the last years. This has rejuvenated the real estate marker for young professionals who wish to rent.
Renting Residential Property
Although the demand for office premises have increased, the foundation of the Cyprus real estate market remains in residential property. The market for renting properties in Cyprus is set to increase in 2019 as employment figures increase (as mentioned above) the option of renting a property is achievable for professionals. Increase in renting is also attributed to Cypriots that prefer to rent then buy, foreign workers who do not wish to be tied down to owning a property or the large number of foreign students that come to the island looking to rent for a few years. All of these factors play a role in creating a great opportunity for the development of property to rent residentially.
Continual Investment in Cyprus
Cyprus has gained international attention as a successful place to invest in, the countries creditworthiness has been upgraded seven times in 2018. Once by Moody’s, once by Standard and Poor’s, and twice by Fitch ratings and DBRS. The creditworthiness of Cyprus is expected to be evaluated eight times in 2019 with positive results predicted and ultimately a continued positive impact on the economy and real estate sector.
Cyprus Investment Program
Although the renting market in Cyprus is growing the Cyprus Investment Program that allows investors to obtain the Cyprus passport, is set to maintain a big role in 2019. With a flourishing economy, the program has become even more attractive for those who wish to invest in property and gain citizenship, particularly popular are luxury villas and seafront villas in Cyprus that grow in value over time. With increasing, investment grades now is the perfect time to seize the opportunity to take part in the program and invest in Cyprus property.
Overall 2019 holds a bright outlook with a healthy real estate sector, based on the foundation of a strong economy. Whether you wish to buy or rent Cyprus is always a good idea.