Increased Russian investment expected to aid Cypriot housing market
Cypriot developers and homeowners could see new interest from Russian buyers as growing number of property investors from Russia are choosing to buy properties in Cyprus, experts have revealed.
According to the Royal Institute of Chartered Surveyors (Rics), Cyprus has always been a favorite for Brits and there is a very strong ex pat community lured not only by the Mediterranean island lifestyle and exceptionally good weather but also combined with low taxes. Growing interest from Russian investors over the last two years to invest in Cyprus is also fuelling Growth in Cypriot market.
Sam Orgill, MD of ProACT Partnership, experts in tax issues, and investment and legal matters for buyers of properties in Cyprus says, “Many Russians established shipping businesses in Limassol on the back of favorable international business tax treatments by Cyprus in the 90’s. Despite joining the EU, an affordable tax regime continues to make Cyprus attractive to Russians”. Besides, the country appeals to their character; the Cypriots have a long history with the Russians linked by religion and location. Apart from the tax advantages, Direct flights from Moscow and St Petersburg to the new expanding Paphos airport help fuel the high interest. Many properties in the Limassol area are being purchased for offices .In Paphos the areas is chosen more as holiday homes or as their main residence.
Jonathan Salsbury, Cybarco UK manager, said Cyprus had been seeing Russian investment “for some time” and investors are now looking for second homes as well as business opportunities. He commented: “Limassol has recently undergone a significant re-birth – upgrading facilities – which has in turn attracted a wealthier buyer and maintained steady price rises.”
According to Cybarco, the Russian expats has grown Limassol; the local property market could get an increase in investment as some Russians to find a second home as they have seen the potential for capital growth in property due to the forthcoming Limassol Marina.
In related news, a Russian organization is planning to build a Disneyland holiday resort in Larnaca, which is set to jump-start the island’s property market. Over one million extra European tourists are expected to arrive in Larnaca every year to visit the 1,000-room Greek-themed attraction, as well as hundreds of thousands of other worldwide visitors.
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