«When Cyprus Investment Program was closed, the real estate market has undergone major changes.» Expert opinion
Recently, many failures have been associated with coronavirus pandemic. However, experts note that in some countries the real estate market was affected not only by the quarantine itself.
Sergey Filatov, the founder of World Property Invest, reveals the changes that have taken place in the Cyprus real estate market and their causes.
«When Cyprus Investment Program was closed on November 1, 2020, the market has undergone major changes. In recent years, most of the projects were focused on passport holders and the cost of real estate started at 2 million euros.
It is obvious that in the present circumstances few people will buy objects at such a cost just for their personal use. I can only guess about the future of these projects: some will be closed, some will be frozen, but several of them will be implemented because the developers are very powerful investors.
Speaking of prices, I assume that they are expected to fall dramatically — the quarantine has adversely affected the real estate market in Cyprus.
It should be taken into account that investors who received passports and passed a three-or five-year moratorium (a period when they could not sell real estate) will now offer good discounts on their investment properties.
Since many investors purchased more than one object, a large number of liquid real estate may appear on the market now — the period during which investors couldn’t sell their housing has expired.
It is likely that good offers in the secondary market will outdo those in the primary market, and this will be a problem for local developers who are interested in selling their new buildings. The Cyprus real estate market has returned to the point where it started, with people buying property primarily for personal use and/or for rent.
It is worth noting that the program for obtaining a residence permit for the purchase of real estate still operates in Cyprus: the requirement is to buy one or more objects with a total cost of 300,000 euros. The document processing for a residence permit takes 1 month (fast track). Both the investor and his/her family receive the permit.
Cyprus has not yet entered the Schengen area, so it is the only country where you can stay for an unlimited number of days with a residence permit. As soon as the country becomes a part of the Schengen zone, it will be possible to travel visa-free to all EU countries.
I would like to point out one particularly interesting real estate project for a residence permit in Cyprus — the Pearl Park Residence apartment complex, which is located right in the centre of the historic city of Paphos with a fascinating view of the Mediterranean Sea. There you can buy a fully furnished two-bedroom apartment with an area of 151 m2 for 300,000 euros. This property is perfect for obtaining a residence permit.
The territory of the complex features:
- children’s pool;
- shared swimming pool;
- private gym;
- landscaped gardens.
Not far from the complex there is the infrastructure necessary for a comfortable stay.
Having a residence permit in Cyprus, foreign citizens can arrive even during the pandemic, while a type C visa does not provide for this opportunity. As I see it, it is better to observe quarantine in Cyprus in an apartment with a view of the sea and mountains rather than spend this time in the city».