The process of selecting investment areas is based on macroeconomic analyses, examination of regulations and the business environment, monitoring urban development plans, feasibility studies, and fieldwork.
Cyprus, an island nation at the crossroads of Europe, Asia, and Africa, declared independence in 1960. Since joining the European Union in 2004, Cyprus has experienced significant growth marked by economic enhancement, infrastructure development, and an influx of foreign investments. The Cypriot economy, which was severely impacted by the global crisis in 2008, has been on a recovery trajectory since 2016. In 2018, Cyprus's credit rating was upgraded to "investment grade," and in 2023, the credit outlook was revised to positive.
The growing economy, favorable tax policies, investment incentives, and a conducive regulatory environment are attracting international companies to establish their headquarters in Cyprus and relocate their employees. In 2022 alone, over 1,000 international companies chose to move their operations to Cyprus, bringing approximately 9,000 employees, with the overall wave of migration estimated at around 25,000 individuals (including workers and their families). The foreign resident population in Cyprus accounts for approximately 22.7% of the total population, primarily from EU countries. This significant proportion of foreign residents and positive immigration trends lead to excess demand in the rental and residential property markets.
The tourism sector in Cyprus constitutes about 13% of GDP and serves as a growth engine for the Cypriot economy. The number of incoming tourists has shown improvement compared to 2019 (before the COVID crisis, with 3.97 million tourists), with estimates of 32%, 50%, 84%, and 94% growth in 2020, 2021, 2022, and 2023, respectively.
Investing in the Cypriot real estate market offers numerous advantages. The relatively low entry threshold allows for real equity investment with the option to leverage up to 70% of the property's value through local bank loans. Additionally, the ongoing development of significant projects on the island is expected to contribute substantially to economic growth: the establishment of new marinas in Limassol and Larnaca, the construction of the largest casino in Europe in Limassol, and the relocation of oil refineries from Larnaca’s coastline for tourism development. The upward price trend, which was halted by the COVID crisis, is anticipated to continue in the coming years alongside the economy's recovery
