Cyprus property market has changed in the past 15 years. In 2000s there was a boom in the housing sector, and the real estate field development was at its peak.

Property sales happened at the off-plan or under construction stage. The banks offered mortgages at favourable conditions up to 80% of the property value and at 3-5% interest rate per annum. The number of completed properties was increasing each year.

As a result of the crisis in 2008, the market was oversupplied with illiquid and overpriced assets. The understanding of such nuances and specifics of the local market may often prevent serious financial loss.

Veskip will help you to

Our task is to form your understanding of the Cyprus property market, which is a guarantee for your future investments.
  • put together an investment portfolio,
  • analyze the market
  • select the market segment that reflects your risk and profit expectations,
  • forecast the expected profitability,
  • and determine the future growth prospects for your investments.

Despite the decline in the real estate in the past decade, Cyprus property market is rising now.

Veskip offers several investment strategies:

  1. Market analysis and purchase of the low-priced apartments and houses in the prime locations. Reduced prices on such properties are justified by the poor financial position of investors and owners who invested in real estate at a high price at the peak of the market.

    These properties are redecorated and rented out on short term or long term rent, where the owner receives 3 to 8% profit per annum. Another way to profit from these assets is to resell them at 30-50% higher price than the original one.

  2. Non-performing loans (NPLs) of the Cyprus banks. By participating in the tender or auction, you can purchase different types of real estate at a reduced price: houses and apartments, complexes, shopping centres, hotels, etc.

  3. Hotel development. The typical after-purchase behaviour of the investor is to generate a profit history and resell a hotel as an established operating business. Cyprus hotel market has significantly increased its appeal to investors. Many hoteliers were struggling to stay afloat and were forced to take loans during the crisis in 2008. In some cases, the debts of the hotel exceed its cost, and the profit does not cover the interest on the loan. Cyprus banks sell hotels at the price lower than assets current market value.

    Cyprus government, on its part, stimulates hospitality industry through grant of additional building density. Hotels in Cyprus have a right to build on its territory residential property up to 20-30% of the existing area of the hotel. This is expected to generate a profit from sales or boost rental income. Therefore, the investor, who purchases a hotel with option to expand its grounds, gains additional 10 to 30% profit from the sale of residential real estate. Besides, the owner can sell the hotel at any given point in time.

  4. There are investors who benefit from the stagnation in the construction industry. Development companies are unable to borrow funds required to purchase construction materials and pay for the labour, whereas, investors are opening new development companies with sufficient funds to run the construction of new projects.

  5. There are plots and lands for sale in prime locations. These sites are suitable for the construction of new projects that differ from those, that were built earlier in the times of significant demand. The prospect development projects vary in its concept, the number of floors (high-rise buildings are being built all along the coastal line of Cyprus), superior finishing, etc. having a competitive advantage over a large number of properties that were inadequately constructed and are poorly located.

Since the crisis the cost of development decreased. Projects that are developed today benefit from the lower building cost and reduced cost of land.

In addition, the amended law allows investors to purchase reasonably priced plots of land (more than 10 hectares) in the agricultural zone. Land zoning can be changed, provided there is a comprehensive project proposal.

Schedule an appointment with one of our specialist to discuss further your expectations and investment strategy. We strive to provide all the necessary information promptly to enable our client to select and manage his/her investment in Cyprus property.

Veskip Estate Group is in the constant process of modernization and development, and our vast experience in both the local and international markets allows us to provide our clients with the utmost efficient, knowledgeable and professional service possible.