Real Estate market , the day after…

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The real estate sector was hit hard at a time when we were on the rise.

The pandemic, which still affects all social and economic strata of the world, has imposed critical changes in the world as we knew it. At the same time, he tested the reflexes of the countries in the world, with some of them being an example to follow. Among them is Cyprus, which through fast and efficient handling managed to deal with the spread of the virus in time, keeping the number of cases low.

The real estate sector was hit hard at a time when we were on the rise, on the one hand because of the Cypriot investment program, but without being the sole factor, on the other hand because of the important projects that attracted the interest of large investors. The Covid-19 pandemic paralyzed the works for about two months, thus “stealing” significant schedules. 

Countries around the world are “treating” the wounds left by the pandemic and trying to reorganize the goals that will help them achieve a rapid economic recovery. For small countries such as Cyprus, Malta, Luxembourg and others whose economies are not based on industry and production but on tourism and services, the investment program they implement is vital. Amid intense criticism and concerns from the Commission regarding investment programs, Cyprus and Malta are upgrading their models to make them more functional and reliable. Characteristic is the example of Malta, which reached the limit of 1800 applications it submitted, leading the country to upgrade the program, but also that of Cyprus with the recent changes in its structure.

The near future seems uncertain, but the opportunities that usually arise from crises are the foundation for the next step. At the moment, many foreign investors and high-income people from Europe, the Middle East, the Far East and Russia, for whom the priorities in the pandemic era have changed, are looking for “safe” investment options and destinations.

By firmly on our feet again, and by “shouting” the comparative advantages of the island, we can attract foreign investment interest with the new data we have in front of us, and restore the positive climate in our economy. And this is achieved by creating the right messages that are sent in all directions.

For starters, the trend towards real estate as a safe investment is constantly being confirmed globally, as the industry can bring in large returns that in the end, exceed the initial investment, through the continued steady increase in their value. All this in contrast to the uncertain performance of many stock exchanges and ups and downs of national currencies. This trend is reinforced by the increased demand for security and the benefits that a second citizenship offers to investors and their families.

In the time of Koronoi, Cyprus verified that it was and remains one of the safest destinations in the world, occupying the fifth place internationally, and is included in the countries with the best handling in Europe, in relation to the Covid-19 pandemic.

Key factors for this distinction:

  • Quick reflexes for dealing with cases effectively
  • The proper functioning of hospitals and the dedication shown by health professionals
  • The correct imposition of measures and their gradual and controlled relaxation credit the government of Cyprus

Based on the positive data that Cyprus has to show, the pioneering residential and commercial projects, but also the security inspired by the island, foreign investment companies, investment service professionals and potential buyers, are once again turning their attention to us.

The positives include: 

  • Security and low crime
  • Design and implementation of large development projects such as marinas, casinos, hotel units, etc.
  • Stable and strong economy
  • Favorable tax policy for foreign investors
  • Good legal and banking system
  • Unified medical system
  • One of the best educational institutions in Europe 
  • Very promising natural gas sector
  • Great climate and award-winning beaches

In addition, the continuous upgrade and improvement of the Cypriot investment program, and its recent link to the law on money laundering, also known as Anti Money Laundering (AML), strengthens the Government’s program, “marrying” it to the needs of foreign investors. , and at the same time neutralizing any doubt of European institutions regarding the transparent process of its implementation.

Finally, we must all become “ambassadors” of our country, at a time when the pandemic that brought new data continues, so as to highlight the many advantages of Cyprus and attract foreign investors and serious investments that benefit our economy in the long run. 

* Lucas Kitrou is the sales manager of Marina Ayia Napa