Middle East News 247: Cyprus emerging as property investment capital of Europe for GCC investors

March 26, 2024

Leptos Estates featured in Middle East News 247. View original article HERE or below:

Cyprus’ largest development group, Leptos Estates, has been crunching the numbers and discovered that currently the independent Mediterranean island offers the best property investment potential in the European Union. Set to rise further in the next 12 months, the average yield in Cyprus reached 7% in 2023, which was significantly higher than Greece (4%), Italy (3%) and France (2%) and bettered only by Ireland (8.5%) [1]. However, a shortage of new housing in stock in Ireland is set to see this figure drop, whilst the building boom across Cyprus in recent years has seen investors boosted by a 21% average annual return on off-plan new build properties [2]. Investors from the GCC region typically favour larger purpose or bespoke built villas in secure gated residences occupying prominent locations on the island.

Further boosting the investment potential of Cyprus, the country’s GDP has grown by 5.1% in the past year, making it one of the best performing economies in the EU.

Pantelis Leptos, Co-President of Leptos Group of Companies, said, “Cyprus continues to be a popular choice for purchasers particularly from GCC Countries looking for a destination that can provide a private and exclusive lifestyle, whilst also providing the benefits of freedom of movement across Europe. Due to its thriving economy and numerous substantial development projects, Cyprus is now being recognised as a leading global luxury investment destination. We have seen a marked increase in sales to those buying not only for the Residency programme but also to make the country a place to call home be it permanently or as a major base during business or travel through the year.”

This economic growth and stability, as well as a multitude of major regeneration and infrastructure projects across the island, have been the catalyst for an unprecedented and steady increase in transactions due to the influx of tourists and Middle Eastern investors favouring a move to Cyprus and acquiring real estate. The growth achieved led to a record year of sales for Leptos Estates, with the prime developer announcing a 15% rise in off plan property sales in 2023. On an annual basis, overseas sales (both EU and non-EU citizens) rose by 16%. 2023 saw the highest number of sales to the overseas market since the market peaked in 2007.

The prices for an off-plan properties through Leptos Estates are more attractive for the investorsthan when the property is completed due to the length of time it takes from purchasing the land to the property being completed and the potential increase in material and construction costs. Purchasers then have the chance to shape the internal layout of the property from the start making important decisions of how it will look along the way.

There is also the added benefit of significant capital appreciation through the build process, which is providing investors average annual returns of over 20% currently.

An additional benefit to buying a home in Cyprus is the country’s Permanent Residence Programme, which permits foreigners to acquire a lifetime Immigration Permit for individuals and their families through property investment, starting from US$328,000. This provides unlimited access to the country and across the EU.

Cyprus also benefits from its year-round warm weather and sunshine, whilst an abundance of blue flag beaches attracts tourists from all over the world, as well as natural hotspots and mountain ranges, which includes a winter ski season, means that there is regular high demand for rental/holiday home usage.

Adonis Beach Villas, an exclusive collection of super modern detached luxury villas on the Paphos coast have proven popular with MENA investors, as they look to secure a prime home in a secure location. Ranging in price from US$1.5 million to US$3.49 million +VAT, the luxurious beachfront super homes overlook the Mediterranean Sea and feature modern architectural design and finishes, services, facilities, and amenities of the highest standard. Each home comprises private overflowing pools, landscaped gardens, large verandas and expansive outdoor living areas.

Located in Limassol is Blu Marine, a striking collection of contemporary towers, which comprise over 240 apartments that benefit from breath-taking views of the Mediterranean Sea, deep private balconies, 24-hour concierge and luxury amenities including a state-of-the-art Health Spa and Gym.

Close to Dubai Port, Limassol Marina, and Old Town, as well as featuring its own private beach, MENA investors have purchased at Blu Marine for personal use, as well as to benefit from the impressive rental yields on offer. Apartments are available in a range of sizes, from one-to-five bedrooms, with prices starting at US$800,000 + VAT.

Leptos Estates is the leading provider of new homes in Greece and Cyprus. For more information contact the Dubai Office on Tel: +971 4 2579306  / +971 509482424 or email Jenny.Pullon@LeptosEstates.com

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