Cyprus real estate market kickstarting due to the new Permanent Residence Permit regime

Cyprus property market is picking up with a 67% growth year to year. In accordance to Land Registry statistics the numbers are not really huge but the rates are and it seems that the real estate market is kick starting. The growth rates per district are the following:

• Nicosia (Capital): 131%;
• Limassol: 4%;
• Larnaca: 50%;
• Paphos: 67%;
• Famagusta: 48%

It seems that the growth is caused by international demand, sales and property registrations. This clearly indicates that the new Permanent Residence Permit regime via property investment is paying off. In 2012 there were 15 PRPs granted to third party nationals investing in property. Another 600 PRP applications from third party investors are under consideration and expected to be granted soon. This is a clear indication that 600 properties are sold (but not yet registered to the investors) which clearly sets the stage for more growth for Cyprus’ real estate industry in 2013.