It is a fact that the Russian demand keeps going most of the real estate markets in Europe. Cyprus is one of the preferred holiday home buying destinations and in analogy of its size (700.000 population), Cyprus seems to be the most popular destination in the Mediterranean by the Russian market.

The popularity of Cyprus as a destination is shown by the statistics, which show the following number of Russian tourists that have visited the island.

The popularity of the island is based on the following main reasons with special concern on the subject of real estate.

• The many years of good relations between the two countries that existed since 1960.

• The most favorable tax system (double taxation agreement) that Cyprus has with Russia and which is the most favorable in the world between Russia and other countries.

• The low crime rate that the island has (14% of that of Spain and 5% of the U.K. 7% of Germany etc based on the Interpol statistics) is another cause of demand. Cyprus is considered as being one of the most safe countries in the world.

• The excellent sunny weather which extends for 280 days p.a. and for the Russians which are used to the cold weather, a beach period from March till November.

• Cyprus has the same religion and religious customs as Russia.

• The existence of a Russian community, with two Russian radio and two Russian newspapers, Russian church etc are an added plus.

• A European/cosmopolitan environment with numerous 5 star hotels and with various types of restaurants from all over the globe.

• Ease of communication since 85% of the population speaking English.

• A European legal and Banking system (based on the British law) and financially sound local Banks.

• A straightforward procedure in buying real estate. Ownership rights are protected and are so registered with the Lands Office. A non E.U. member (such as Russians) unless he registers a local company, can buy a home (provided the land does not exceed 4.000 sq.mts.) and any size of an office for his own business.

The Russian demand directs itself mainly in the Limassol district, where the Russian community is the most populous and out of the total, around 60% direct itself for Limassol, 20% in the Larnaca area, 10% for the Protaras eastern Cyprus and 10% for the Paphos district.

This Russian residential market requires basically two types of property. Those which are on the beach and those which are not but they are nearby and on a hill offering sea views.

The budget for beach properties is not fixed, but based on experience it ranges for a beach villa (approximately 260 sq.mts.) from €1.5 mil. (4 bedroom villa with own garden and swimming pool) to €6.0 mil., for the larger and more luxurious villas. For beach apartments the range is from (say 3 bedroom apartment 130 sq.mts.) €900.000 to €2.000.000.

Offices of a high tech nature range from €3500/sq.m. to €5000/sq.m. with all services available, ample parking, security etc.

Non beach apartments have a price range of €3500/sq.m.-€5500/sq.m. and non beach villas but near the beach €3500-€5000/sq.m.

Prices for apartments in residential areas (approximately 1 km away from the beach) have a selling price of €2.200/sq.m. and villas at €2.600/sq.m.

All prices quoted above refer to new properties. Resales of around 2-5 years old have a discounted price of 15%-20% depending on their condition.

In addition, local Banks are happy to finance Russian buyers provided their contribution to a purchase is around 30%-35% and they can prove that they can repay the loan (loans can be taken in various currencies depending on the clients request). The repayment period is usually 15 years and at the lending rate (base rate of the currency) +2%.

As it can be seen from the above, not only Cyprus Banks have the required liquidity to lend, but also the real estate prices in Cyprus are most competitive with respect to other Mediterranean countries. This must be compared that all housing/property has available public services, whereas its Cyprus’ two international airports and daily flights from Russian, provides access to a property wherever is in Cyprus within one hour (if the property is in Paphos or if in Larnaca 20 minutes) from landing at Cyprus.

What is most interesting and in addition to the above, Cyprus is improving in its infrastructure extensively. It has just completed two new airports (to replace the 2 existing), it has 3 international standard golf courses within minutes drive, whereas another 11 are programmed to be constructed within the next 3-5 years, making the island a golf destination. At the same time 4 international marinas are out to tender, providing the island with this much needed facilities (adding to the 2 existing).

Because of the long lasting friendship and business tourism relationship of the two countries, many locals speak the Russian language and mix marriages are increasing at a fast rate(!!). Our new socialist Government has been practically totally educated in the ex USSR and this helps towards the meeting of minds and it helps in bettering the two populations relationship.

The Government’s target is to turn the island from a tourist mainly destination into a business and educational center, based on the Dubai model, but without the humid and unhealthy weather and contrary to Dubai, with an overall European way of life.

Now that, as everybody else has suffered from the global economy, the island offers good investment opportunities for the Russian market for the low and high budgets and whether one decides to live in the island permanently or as a holiday destination, he will feel near at home, away from the impersonal life countries and unfriendly attitudes.

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