Is a property in Cyprus a good investment?

Cyprus is a member of the European Union and the British Commonwealth - the Eurozone - and is also a member of the World Trade Organization and the International Monetary Fund.

The country has a favorable tax policy, and its gross domestic product (GDP) grows on a yearly basis. Cyprus has a well-developed infrastructure as well as a diverse range of entertainment options.

Additionally, perks such as a nice climate, access to the Mediterranean, an abundance of grapes in the island's interior mountainous regions, gorgeous scenery, unique sights, and unusual architecture should be added to this list of advantages.

Many investors are seeking possibilities to earn a solid, continuous, and regular source of income rather than just generating a quick profit in this unpredictable economic climate.

This, however, might be a difficult first step if you are unfamiliar with the current conditions of the numerous marketplaces available.

Cyprus, one of the world's most popular tourist destinations, known for its mesmerizing natural beauty, is a strong contender when it comes to real estate investment.

Not only does it provide a financial advantage, but it also provides a great deal of aesthetic appeal as well as a very comfortable and contented existence. As a result, investing in Cyprus real estate is a fantastic opportunity. 

Continue reading to find out why now is an excellent time to make an investment in Cyprus.

Why is it a good time to invest in Cyprus real estate?

1. Low house prices

The Mediterranean's weather may be wonderful, but the costs surely aren't. While it's no surprise that Cyprus has a lot of affordable real estate, it's startling just how much there is. 

As a result of the recession, the island's housing market is still in the early stages of recovery and house prices are half those in Spain and one-third the UK.

2. Exceptional Rental Returns

Because rental returns are still quite high, this is a good moment to invest in real estate and rent it out. According to statistics, according to the Global Property Guide, the monthly rentals for residential properties increased by double-digit percentages for the year 2019.

Rental returns on houses climbed by up to 12.5% in some places, while rental yields on flats increased by up to 14.4% in some locations. Investing now and putting the property on the market for rent can be a source of high and consistent income in the future.

3. Diversify your portfolio of investments.

The ability to diversify your assets by purchasing real estate in a foreign country is one of the primary benefits of making international real estate investments.

Of course, it is natural to have certain guarantees or at least some favourable signals guaranteeing steady profits while investing in a market. Even so, in today's economy, things may shift quickly and not usually in a good manner.

This might have a negative impact on even the domestic property market, making it more difficult than ever to sell your home for a reasonable price. An irreversible blow might befall a person who has invested all of his money in a single market. 

Spreading your interests across multiple international property markets is a smart method to minimise the danger of such an undesirable occurrence. If you choose your investments correctly, it is extremely unlikely that all markets would drop at the same time.

4. There has a low crime rate.

The island of Cyprus is a highly popular holiday destination for a large number of tourists. It is as a result of this that the country's criminal justice system is always under surveillance. 

The rate of violent crime in this nation is lower than that of much of Europe, giving it a safe refuge for people from other countries to live, explore, and invest in. 

Furthermore, with a recorded crime rate of 1.2 percent in 2018, you can be certain that your investment will be protected over the long term.

5. Tourism Information Center

The country is a key destination for tourists. Visitors from the United Kingdom made up 28.8 % of all September 2021 visitors, followed by Russia at 26.2%, Poland at 6.11%, Ukraine at 4.4%, Greece at 4.11%, and Germany at 3.7%.

In September 2021, 86.6% of tourists were on vacation, 9.3% were visiting family and friends, and 4% were on business.. Around 79% of visitors came to Cyprus for vacations, 13% went to see friends or family, and 14% came for business in September 2020.

Cyprus will continue to be a popular tourist destination for many nations if travel restrictions are lifted, despite the fact that tourism declined last year in 2020 as a result of the limits on worldwide travel imposed by the United Nations.

The tourist industry in the country contributes significantly to its economic development. The introduction of vaccinations and the slowing of the pandemic would ideally allow travelers to return to their destinations.

It results in a significant increase in money earned by visitors to the country. Investing now would be the best approach to take advantage of the impending tourism boom in the region.

For those interested in learning more about some of the most promising Cyprus real estate investment prospects currently available, we can organize virtual viewing tours for you.

A significant amount of study and planning is required before making an investment. Before entering any market, it is generally advisable to conduct some preliminary research.

For all of the reasons listed above, it should come as no surprise that Cyprus is currently one of the most popular investment destinations in the world.

6. Low-effort, reliable cash flow

A solid property investment on the island provides a respectable amount of passive income, primarily through rentals. Even if it's tough to manage a home while you're away, there's no need to do it yourself.

Asset management services exist in developed real estate markets like Cyprus to ensure regular rent payments, correct repairs and maintenance, and the completion of all paperwork and legal procedures in a timely manner without the danger of fines or excessive taxation. 

Indeed, property management in Cyprus makes property investing a great alternative for those with busy schedules and little time for other activities, or for retirees who require a constant stream of revenue without too much worry and effort.

Where should you buy your Cyprus Real Estate Investment?

Cyprus is a popular tourist location for a variety of reasons. If you're looking for a tourism destination, Paphos or Ayia Napa are excellent choices.

Minthis, Aphrodite's Hills, and Venus Rock are just some of the magnificent golf courses that can be found around the island. Apartments in the city or marina properties, village townhouses or villas by the sea or in the mountains 

All of which are good investment opportunities are available for purchase. The options are truly endless, and we would be delighted to assist you in making the best decision for your financial future.

Working with a variety of renowned developers and agencies, as opposed to being an agency ourselves, we are able to provide an unbiased opinion on the finest prospects available to meet your specific investment objectives.

Residence permits

The Golden Visa program has been in operation in Cyprus since its inception in 2009. It was established in order to aid in the development of the country's economy.

After launching the program in 2012, the nation was able to generate two billion euros during the first four years after its launch. What exactly does the program offer? A residency permit can be obtained on the basis of the property you have acquired, according to the document.

It is not only the owner of the property who is given a residence permit in Cyprus but also his family members.

This requires the submission of an original and a copy of the passport, four photographs, an applicant's curriculum vitae, a certificate from a Cypriot bank confirming a deposit of 30,000 euros for a period of three years, medical insurance, marriage and birth certificates, and a certificate of criminal background.

Author: Christos Nikolaou

BEng Mechanical Engineering, MSc Real Estate, ETEK Property Valuer, Register and Licensed Real Estate Agent.

Christos Nikolaou is the founder and Managing Director of Property Canvas, he holds a license as an Estate Agent from the Association of Real Estate Agents of Cyprus and he is a registered Property Valuer in the Technical and Scientific Chamber of Cyprus (ETEK). He is the author of our “Is a property in Cyprus a good investment? ” and is a certified advance negotiator.