New Construction Projects in Cyprus in 2020
As investments continue to come in, new construction projects in Cyprus demonstrate a promising upward trend through 2020 and into next year. The sale of real estate property, for both commercial and residential properties, is booming. Many foreign investors are choosing Cyprus as the next real estate investment hub.
My Kypros Home explores the many unique investment opportunities for new construction projects in Cyprus in this week’s article. These large-scale projects are building the foundation for even more wealth growth in the next few years. Taking advantage of this investment opportunity now can have a high ROI in the future.
An Overview of New Construction Projects in Cyprus
Confidence in the real estate market in Cyprus continues to steadily grow. The amount of new building permits has more than doubled in the last 7 years following the 2013 financial crisis. In February 2019, the number of new building permits increased by 9.1%. Cyprus as a whole has demonstrated a growth rate of 4%, double that of the average of other EU member-states. The previously mentioned permits also indicate a strong market, with the total value rising by 64.7% from the previous year.
High-rises, residential buildings with seafront views, and new luxury hotels are showing up all around the island. Many corporations are relocating to Cyprus to take advantage of the favorable business and taxation environment and, as a result, are investing in the development of new commercial buildings for their headquarters. Over 20 large-scale projects are valued at 8 billion Euros, with the potential to change the business landscape of Cyprus.
Foreign Investors Are Leading the Way
With relatively new residency and citizenship by investment programs, Cyprus has seen a large part of its construction industry being driven by foreign investment. Half of all the properties sold in 2018 were bought by foreign investors.
Limassol and Paphos continue to be the most popular destinations for luxury residential properties and it was estimated that, two years ago, these transactions were worth more than 500 million Euros. Sales in the first quarter of 2019 rapidly increased by 23%. Foreign investors from Russia, China, and the Middle East accounted for a large portion of these sales as well as applications for the citizenship by investment program, which has brought in 6.6 million Euros to Cyprus.
Foreign investment hasn’t just been focused on the sale of properties already constructed, but also properties being developed currently. Some of the new construction projects in Cyprus are fresh, state-of-the-art residential buildings, while others are marinas, golf resorts, or other commercial properties.
Demand for Exclusive, Luxury, and Tourism
According to the Cyprus Statistical Services, quite a few of the new construction projects in Cyprus are investment properties focused on providing luxury experiences for Cypriots and visitors. Both new projects and investments in existing assets have brought in several multimillion-euro contracts in the last five years. Five-star hotels, malls, and luxury marinas are providing luxury developments that combine residential aspects with commercial and office-space property.
The success of the Limassol Marina has prompted more development in luxury seafront spaces that combine residential with commercial. The Ayia Napa Marina is a 220 million Euro project that boasts two twin skyscrapers at over 100 meters, a 600-vessel marina, over 200 apartments, 30 luxury villas, and several clubs, restaurants, and shops. This is one of the biggest investment opportunities in Famagusta.
New green spaces are also hitting the construction industry. This includes:
- The Aristo Eagle Pine Golf Resort in Limassol
- The Aristo Venus Rock Golf Resort in Paphos
- The Berengaria Hotel Spa in Prodromos village at Troodos Mountains
- Limassol Greens Golf Resort
- The Vasa Golf Resort in Vasa Kellakiou village of Limassol
- Elea Estate in Paphos
- St Elizabeth Golf Resort in Limassol
Many of the properties are marketing features such as lakes, leisure developments, and environmental diversity, with Limassol and Paphos being the most sought-after districts.
The tourism industry is also seeing a large influx of large-scale investment projects. The Coral Bay Integrated Resort, Limni Bay in the Limni area of Paphos, Minthis Hills Resort Paphos, and The Continent Resort are all five-star hotel and resort properties bringing exclusive travel luxury to Paphos.
Residential & Commercial Real Estate Projects
Along with a booming tourism industry, new construction projects in Cyprus focus on bringing together the Mediterranean way of life with urban commercial and office space. These spaces are projected to become hubs for life, work, and entertainment in popular areas all over Cyprus. Within the heart of the city or with seafront views of the ocean, these residential-commercial combos are providing residents and daytime shoppers or professionals with the ultra-high-end experience.
Investment opportunities include the Del Mar on Limassol’s seafront, the Limassol Landmark, the Leptos Marina Residences in Limassol, and the Pafilia Tower also on Limassol’s seafront. Neapolis is the first Smart EcoCity in Cyprus and offers many residential lifestyle opportunities within large green areas within the middle of tourist-area Paphos.
Santa Barbara Hills Park is in the Agia Varvara village of Paphos and is a five-star hotel resort that includes a Sports and Multi-Theme Park, Rehabilitation Centre, Geriatric Care, and Monitoring, and a Residential Development with over 700 properties for sale.
Both the Santa Roza Tower in Nicosia and the Limassol Landmark are construction projects aimed at providing impressive and sustainable vibrant commercial space and architectural focal points to Cyprus. These large-scale projects offer commercial space unlike any other construction projects in Cyprus to date.
Medical & Educational Properties Projects
Residential and commercial projects are not the only new construction projects in Cyprus to receive international attention and foreign investment. As the trend for medical tourism continues to expand, Cyprus is developing or redeveloping medical institutions, and private investors are taking advantage of the high rate of travelers seeking medical care.
The Athena Medical Centre in Nicosia, the Gardea Private Medical Resort near Limassol, and the Medlife Village on the edge of Akamas National Park are examples of high-quality medical facilities or living spaces for those with special medical concerns and needs.
Development projects also include a 4 million Euro investment in the Kyperounta Pulmonary Clinic, a 2 million Euro investment for the Psychiatric Hospital in Athalassa, and several hundreds of thousand Euros for the First Aid Department in Makarios Hospital as well as Kyperounda.
In the educational sector, EDUC.POLE is a special Cyprus investment project that grants space to interested organizations or persons working or investing in a highly-qualitative field or project. Each space is reserved for those that meet the criteria for higher education.
Investment Opportunities in Other Sectors
Interested in the energy sector? Cyprus has two investment opportunities in 2020. The First Electric Ltd in the Larnaca district is the first Independent Power Producer on the island. The company is currently looking for dependable financing and investment partners in order to begin work on the construction of a power plant in the Larnaca district together with a waste management and treatment plant and a renewable energy power plant.
Helios Power is located between Larnaca and the international airport. Investors looking for projects that are more sustainable and eco-friendly can invest in Helios Power’s solar energy projects that are aimed at utilizing the abundance of Mediterranean sunshine year-round to relieve the pressures on traditional, nonrenewable energy sources.
Along with private industries and investments, the Cypriot government is taking the initiative to develop and expand several of its own facilities. The Ministry of Foreign Affairs will cost 3 million Euros to build alongside 13 million Euros for the Migration Department building. A new Parliament Building is set to cost 80 million Euros. 85% of these large-scale infrastructure projects are co-financed by European Structural and Investment Funds.
Throughout the island, new construction projects in Cyprus are paving the way for residents, professionals, businesses, and the environment to find cohabitation space that delivers luxury and relaxed lifestyles with efficient, state-of-the-art functionality.
New construction projects in Cyprus provide valuable investment opportunities in this Mediterranean destination as it expands its diverse industries and continues to reward investors. Already high on the list of destinations you should be investing in, Cyprus offers investors many advantages for financial growth along with attractive residency or citizenship programs.
Whether you are looking to invest in the private commercial sector or a luxurious new residence to call home, My Kypros Home can be your partner to get the most out of your investment opportunity. Contact our team and get connected to some of the world’s most exclusive new construction projects in Cyprus and start enjoying the Mediterranean lifestyle with ease today.