1. Larnaca Port and Marina Revamp
The government is exploring options for Larnaca’s port and marina, with the Cyprus Ports Authority temporarily managing the site. Various plans, including breaking the project into smaller parts, aim to quickly restart operations and preserve jobs. Read more
2. Credit Rating Boost
Fitch upgraded Cyprus' credit rating from BBB to BBB+, signaling strong confidence in the government’s fiscal policies. For real estate investors, this means a stable economic environment with reduced financial risks, promoting a favorable investment climate. Read more
3. ECB Interest Rate Cuts
The European Central Bank reduced interest rates, leading to lower borrowing costs for real estate investors. Initiatives like the Blue Card and Schengen integration are enhancing Cyprus' business environment, making it an attractive investment destination. Read more
4. Property Market Downturn
Property sales in Cyprus dropped by 25% in May 2024, mainly due to rising interest rates and a shortage of affordable housing. High property prices are driving foreign investors to alternative markets. The market remains split, with luxury properties still in demand. Read more
5. Short-Term Rental Impact
The surge in short-term rentals is driving up rents and causing a scarcity of long-term rental options for locals. This trend is creating friction between residents and tourists, raising concerns about tourism sustainability. Investors should consider these factors and potential regulatory changes. Read more
6. VAT Compliance Crackdown
The government is enforcing compliance with the 5% VAT rate for first-time home buyers through inspections. Real estate investors must adhere to legal guidelines to avoid penalties. Read more
7. Limassol’s Real Estate Boom
Limassol remains a top destination for property buyers, with ongoing projects catering to diverse preferences from luxury apartments to seaside villas. Read more
8. Labor Market Stability
The unemployment rate slightly decreased to 6.6% in May 2024, indicating labor market stability which could boost consumer confidence and support the real estate market. However, high youth unemployment (16.3%) remains a concern. Read more
9. Economic Growth
Cyprus' GDP grew by 4.2% in Q1 2024 compared to Q1 2023, signaling economic resilience. For real estate investors, this growth can drive demand for properties. Read more
10. Rental and Sales Index
Q1 2024 saw stable rental values, with significant yearly increases in rents and sales values for houses and apartments. While the market remains stable, demand for residential properties may weaken further. Read more
11. Inflation Impact
Annual inflation in Cyprus rose by 5.5% in May 2024. Rising consumer prices, especially in housing and utilities, may influence rental yields and property values. Read more
12. Growth Forecast Revision
DBRS Morningstar revised Cyprus's economic growth forecast to 2.5% for 2024, down from 3.0%. External economic pressures, inflation, and higher interest rates are influencing factors. Despite the downgrade, growth is supported by tourism, foreign investment, and construction. Read more