02.11.2023
Foreign investors and buyers showing interest in Cypriot real estate are mainly people with high incomes. These include contractors and other investors with an increased interest in residential and commercial real estate.
By profile, most of them come from Israel, Russians, Lebanese and Ukrainians. At the same time, there was also a significant outflow of real estate investors from Saudi Arabia.
Notably, in 2023 there is a shift towards Larnaca and Paphos, with these two cities taking a significant share from Limassol , which has always been preferred by high-income foreigners. However, Limassol remains a key destination and preferred choice due to its cosmopolitan lifestyle and business-friendly ecosystem.
An EY Cyprus report entitled Mid-Year Industry Review: Cyprus Property (October 2023) outlines trends in the island’s property market. The Industrial Climate chapter analyzes the results of a study conducted between June and July 2023.
In fact, the opinion of the main “players” of Cypriot real estate was recorded. The survey included contractors, builders, asset managers, real estate consultants, financial institution professionals, distressed loan managers and agents, among others. It is emphasized that the responses received reflect the point of view of the participants at a specific moment in the survey.
As the study showed, in 2023 there was a significant influx of Israeli investors and developers who showed interest in both residential and commercial real estate, with security being the main factor in choosing property in Cyprus.
Limassol attracts investors with middle and high incomes, while Larnaca attracts investors with lower incomes. Larnaca is also very popular among investors from the Middle East and mainly from Lebanon.
Limassol continues to attract high-profile Russian investors. In particular, in recent months, a significant number of Russians have moved to Cyprus for reasons of security and ease of doing business. The same trend is observed among Ukrainian and Belarusian investors, who also preferred Limassol.
Both Russians, Ukrainians and Belarusians who moved to Limassol began to buy houses for personal use, office space, as well as other real estate to move their headquarters.
The majority of real estate investors come from Israel (55%), Russia (27%), as well as Lebanon and Ukraine (27%), Saudi Arabia (9%), as well as Central European countries (9%) and Belarus (9%) .
According to the survey, the reasons why foreign investors choose Cyprus are:
- For safety reasons (36%). They are mainly affected by the war in Ukraine and geopolitical tensions or unrest in the region.
- Residence and visa status (21%).
- Other reasons such as relocating headquarters (21%).
- Investments (14%). Cyprus is considered an attractive investment destination with high returns from real estate.
- Lifestyle in Cyprus (7%). For example, foreign retirees choose Cyprus, like other investors, to purchase a holiday home.
Finally, 45% of survey participants say that in the next six months the amount of foreign investment will remain at the same level and will not change. The unchanged forecast may be due to the expected market saturation and stable demand. 35% expect foreign investment to increase, while 18% expect it to decrease, citing high interest rates and global uncertainty.
