CYPRUS Trends and Developments Contributed by: Marios Konstantinou and Stalo Konstantinou, George K. Konstantinou Law Firm
George K. Konstantinou Law Firm 55 Gladstonos Roussos Centre Point 5th Floor, Office 5E Limassol 3040 Cyprus Tel: + 357253 68683 Email: info@gk-lawfirm.com Web: gk-lawfirm.com
Introduction In Cyprus, real estate trends and developments are closely linked to developments in the wider economy and legal reforms. The economy drives supply and demand and underlies Cyprus’s position as an international business hub, while the government regulates and monitors activity through legal and fiscal measures. Recently, the Cyprus economy faced several challenges, such as rising prices, inflation and cost of living increases. Nevertheless, the fore - cast is optimistic. The European Commission (latest available data 15 February 2024) expects GDP to grow from 2.4% in 2023 to 2.8% in 2024 and 3% in 2025. Meanwhile, it projects inflation to fall from 3.9% in 2023 to 2.4% in 2024 and 2.1% in 2025. This will have a positive effect on real incomes. The Commission also notes robust private consumption, rising incomes, and available employment possibilities. Regarding real estate, the Recovery and Resilience Facility of the EU partly supports large investment projects that, in turn, positively impact growth. A January 2024 study from the University of Cyprus Economics Research Centre notes a significant budget sur - plus for 2023 and solid economic growth during the last quarter of the year.
The Real Estate Market: Challenges and Optimism The above-mentioned University of Cyprus study examined, inter alia, the real estate indus - try. Usefully, it has identified a positive contribu - tion made by construction investment to GDP growth. Although business confidence in sectors inclosing services, retail and manufacturing has decreased, confidence in construction remains strong and has reached its highest level since 2019. The real estate sector in Cyprus remained largely unaffected by negative global trends. Good performance is set to continue. Furthermore, the Department of Lands and Sur - veys (DLS) statistics, the first for 2024, show healthy activity in property transactions, sur - passing the EUR110 million mark in Limassol alone. The trend for foreign nationals purchasing resi - dential property in all areas of Cyprus, but espe - cially on the coast, is set to continue. There have been satisfactory foreign sales in the first trimes - ter of 2024. It should be noted that EU nationals may pur - chase realty on the island without restrictions, while third-country nationals (TCNs) need approval from the Council of Ministers. The
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