Huge interest from Ukrainians for Real Estate in Cyprus.

Apr 14, 2022 | Cyprus Economy

“Cyprus remains a safe destination, ideal for investing and doing business. Even if the war stops tomorrow, companies and citizens will continue to seek shelter in Cyprus, ” Mr Zavos said. 

According to him, demand increased in all kinds, but especially in luxury real estate. “Most people who come to Cyprus are highly paid and rent 5000-6000 euros per month,” he noted. 

The increased demand, which is now more than the supply, mainly concerns renting, which  in combination with the increase in construction costs, pushed prices up. For example, as Mr. Zavos pointed out, a property whose rental cost two years ago was 1000 euros, today is 1700 euros. 

In fact, it is estimated that the prices of commercial and residential properties for purchase,  but mainly for rent, will increase further. 

However, he stressed that compared to other European cities, but also other quality destinations, rents are at low levels. 

We do not lose the Russians 

The demand from Russians has decreased significantly due to the economic constraints they  are undergoing and not because they do not choose Cyprus. To add that until the issues of  the war are resolved, there will be trouble in moving the Russians, including those who  regularly came for the purpose of investment.

However, when today’s events are over, the Russians will return, since the reason they  stopped their activities is not the lack of money, but the difficulties they face due to the  sanctions they receive from the West. 

“Cyprus will always be a plan B for Russians and Ukrainians. Now we are losing a large number of Russians, but they will come back,” he said. 

A new market is being created… 

The increases in property prices because their value rises, something that has been  observed more strongly since the day of the invasion. 

The fact that real estate is going up creates a good prospect for foreigners and Cypriots to invest, especially now that banks put negative interest rates on deposits. There is a high  rate of return on investment in real estate, amounting to 5-6% for purchase and 6-7%for  rent, rates much higher than other European destinations. At the same time, lending rates  to Cypriot banks are extremely low, which enhances investment opportunities in real estate. 

Other markets 

Demand from the UK had also increased in recent months, perhaps due to Brexit. 

In addition, there is a high demand from Israel, both for residential and commercial real estate and mainly for investment, since the return in Cyprus is much higher than in Israel (2-3% in Israel). 

Finally, he noted that there is demand from European countries, mainly from France and Italy but also from others.

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