articles | 23 December 2023

Cyprus property market unaffected by regional conflict, stakeholder says

Amidst the ongoing Israel-Gaza conflict, concerns about the safety and stability of Cyprus for potential property investors have surfaced.

However, Cyprus property market stakeholder Chris Michael released a statement assuring that despite its proximity to the conflict in Israel, Cyprus remains a secure and stable destination for real estate investments. He cited the 2023 Global Peace Index, underscoring Cyprus’ stability, which rates the island at a ‘high’ state of peace. In this context, this rating, he explained, places Cyprus alongside renowned investment hubs like Spain, Italy, and Germany, while highlighting the island’s commitment to maintaining a peaceful atmosphere amidst regional tensions. This assurance serves as a strong testament to Cyprus’s appeal for prospective property investors.

Michael said that he considers the 2023 Global Peace Index’s acknowledgement of Cyprus’ ‘high’ state of peace “to be highly significant for prospective property investors”. “This places Cyprus in esteemed company alongside other desirable investment locations like Spain, Italy, and Germany. The contrast with France, which is recorded as being in a ‘medium’ state of peace, accentuates Cyprus’s unwavering commitment to fostering and preserving a peaceful environment,” Michael said. “This endorsement adds an extra layer of assurance for those considering property investment in Cyprus, reaffirming the island’s stability and attractiveness in the real estate market,” he added.

What is more, he cited recent data which showed that a significant 46 per cent of property transactions in 2023 involved foreign buyers, marking the highest proportion since 2007. He noted that this surge not only reflects trust in the island’s safety but also underlines its potential as a lucrative investment destination. In addition, he stated that Paphos emerged as the preferred district among foreign investors, followed by Limassol, Larnaca, Nicosia, and Famagusta. In the first two months of the current year, property sales surged by 31 per cent, reaching a total of 1,069 sales—a remarkable increase compared to the previous year.

He noted that this steady growth trend indicates a flourishing Cypriot market, with property sales soaring by 45 per cent since 2019. “These recent trends show a significant surge in Cyprus real estate, capturing the interest of holidaymakers and investors alike,” Michael said, noting that “the market is experiencing unprecedented growth not seen since 2008, with foreign investment now constituting nearly half of all real estate ventures in Cyprus”. “The study also identifies Russia and the UK as the dominant groups of foreign nationals showing keen interest in purchasing property in Cyprus and showing no sign of slowing down,” Michael concluded.

Source: Cyprus Mail

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