Investments in various sectors of the Cyprus economy have become increasingly popular with businessmen around the world in recent years. The Cyprus real estate market is no exception, where the demand for housing is twice the supply capacity. According to a number of experts, Cypriot citizens and foreign investors, as a rule, have recently preferred investments in phased construction. More and more residential complexes, including multi-storey ones, are being built in Cyprus. Such investments imply an average increase in the cost of housing at each stage by 5%, so clients consider such transactions as very profitable and tend to conclude early contracts. As a rule, the construction of such complexes lasts for two to three years, and by the end of the work the value of real estate rises by a quarter. The number of new buildings that developers offer on the market every year is growing, but it still cannot keep up with demand.
In the commercial real estate sector, builders have planned to build and commission in the coming years at least 180,000 square meters of space that will accommodate many retail space. If this happens in the next two years, the supply of retail facilities will increase by 50%. Office real estate is also expanding thanks to the efforts of developers in an attempt to meet the growing demand. Especially in this regard, Limassol is doing well, which in recent years has confidently taken the palm, having won it over from Paphos both in the sector of luxury housing and in the field of commercial properties. New business centers are designed to provide primarily foreign job seekers.
Experts believe that investing in real estate in Cyprus is moderately risky, but more profitable than investing in other assets. Lagging supply from demand makes real estate investments investments with deferred expectations of profitability, in addition, the response of supply to demand, as a rule, takes several years to prepare the required number of objects. This is the risk of such investments. But while the real estate market is at the growth stage, this state of affairs suits investors.
To reduce the possible risk when investing in real estate in Cyprus, according to experts, it is necessary to assess not only the ratio of supply and demand in the near future, but also the most important economic indicators. In this regard, the purchasing power, the level of employment, the credit and currency factors of the Cyprus economy are currently very positive.
