The impact of the Citizenship by investment program on Cyprus real estate industy

Uglobal Immigration Magazine, Volume 1, Issue 1

Article By Antonis Antoniou

Cyprus real estate industry has recently come through some turbulent times. The country’s former financial crisis aside, robust property development companies have successfully ridden what was, in effect, a global property recession. The great news is that some reputable developers have not only transitioned through those difficult times but have now emerged at the forefront in the creation of prestigious development projects on the island’s prime coastal locations. One of the major factors in what has undoubtedly been instrumental in reshaping property development in Cyprus is the continued influx of high net worth individuals into the country. Businesses that have failed to recognize the huge potential in this sector and its requirement for the high-end properties are likely to be left behind. To their credit, many forward-thinking developers continue to display expertise in this sector and it is being borne out in their involvement in several projects 

With a limited local market and the downturn in the number of near European investors, discerning property developers are now looking further afield to attract more HNWIs from the nearby Middle Eastern and Asian Pacific regions. Such investors represent a ready market for luxurious developments and these are already creating buoyant demand. Visitors and investors on the island of Cyprus could also expect the skylines to evolve over the next few years, thanks to a broader view concerning the creation of new high-rise developments. The landmark residences at the new urban areas that are planned will bring a new progressive and modern edge to the country’s visual profile. Working closely with the government to enhance Cyprus and its long-term development profile, developers will continue to be at the cutting edge of creating the island’s more modern and progressive future. 

THE ROLE OF DEVELOPERS 

Through their recognition of the need to bring investment into the country, many developers have carried out the role of ambassadors, selling the benefits of foreign investment in all the locations that count. From providing the innovation that creates the most desirable luxury properties to pioneering citizenship through investment schemes, they continue to surge ahead of the competition. Aa leading European country to instigate a citizenship through investment program in 2011, Cyprus has displayed how the government and innovative private sector businesses are able to work together. Education concerning exactly how valuable these HNWIs are to the Cyprus economy is likely to prove crucial in allaying public fears concerning their effects on local employment and business. The reality is, of course, that such individuals are contributing to the island’s economy, not taking from it. With the minimum investment amount of 2 million euros in real estateabout 5 billion euros have been invested in the island’s CBI programs, statistics say. 

BENEFITS OF INVESTING IN CYPRUS 

Thanks to Cyprus’ highly successful citizenship through investment program, the precious commodity of dual citizenship can now also be extended to more than just the privileged few. As an EU member state, a Cypriot passport opens up the gateway to Europe for investors. With access to 157 countries around the world, the island’s tried-and-tested scheme is the perfect choice for those looking to extend their business boundaries. 

Cyprus offers those who choose to live there an enhanced lifestyle that is the envy of many developing countries. The mild climate and long-life expectancy are well recognized around the globe, which explains why it achieves such a favorable score on the human development index. The southeast coastal region of Famagusta is currently one of the areas at the forefront of a potential growth spurt that looks set to jump start the next up-and-coming luxury real estate hot spot. This is already attracting a growing number of HNWI purchasers who see Cyprus as an ideal location to live and to carry on business within Europe.  

Thanks to the rapid and consolidating recovery of the Cyprus economy and an increasing global confidence by foreign investors, there has probably never been a better time to invest in Cyprus than right now. Luxury and quality service are the mantras of those at the forefront of this new age of prosperity and economic growth. The experts predict that those who are shrewd enough to invest now are likely to reap the maximum returns on the investments that they make.   

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About the Author
Antonis Antoniou
Antonis Antoniou

Antonis Antoniou is the executive director of Giovani Developers Ltd., a top real estate company in Cyprus. He joined Giovani in 2001 after successfully completing his business management studies in the United Kingdom. Following graduation, he commenced employment in the energetic real estate environment, assuring upscale property buyers on their holiday home investments. Passionate about quality and customer service, he now manages a real estate and project development company with more than 200 employees and continues to invest in numerous projects, ranging from small residential homes to large touristic residential developments.