With the rise of European Property Investment Immigration, it is no longer a novelty for Chinese individuals to invest in real estate in Europe. As of now, investors from China have purchased 600 villas in Cyprus, with a total investment amounting to 200 million euros (approximately 1.6 billion RMB). The Cyprus government introduced the Cyprus property immigration policy in 2009, which has attracted a significant number of investors from Russia and China.
In the past, the Cyprus real estate market experienced a period of glory, but following the outbreak of the financial and debt crises, local housing prices have dropped by 20% to 50%. To boost the real estate market, the Cyprus government has introduced several new policies to attract overseas investors.
In February of this year, the real estate transactions department of the Cyprus government processed 501 real estate transaction cases, reflecting a 54% increase compared to the same period last year. In January and February, the number of processed real estate transactions totaled 828 cases, representing a year-on-year increase of 28%. Statistics show that in major cities in Cyprus such as Nicosia, Limassol, and Larnaca, real estate transaction cases amounted to 79, 179, and 108 respectively, with year-on-year growth of 76%, 85%, and respectively.
The economic development of Cyprus has also attracted considerable attention from many investors. The International Monetary Fund (IMF) recently signed an agreement at the conditions meeting for the Cyprus assistance program, agreeing to disburse the next tranche of in aid loans. To obtain this aid loan, the Cyprus government has committed to cut expenditures and privatize the national telecommunications, electricity, and port sectors.> President Christine Lagarde indicated that Cyprus has performed well in adhering to reforms, stabilizing the finance sector, and meeting budget reduction targets, but the government should accelerate the privatization process.>