Cyprus: The worst is over

The situation in Cyprus, it seems, has passed a critical phase. Economy suffered a shock and will now gradually come to life. Cyprus ruined his reputation as a tax haven, but the collapse of the real estate market did not happen. Furthermore, the property is likely to be the main defense of capital on the island. Cypriots, and investors from all around the world, got a hard lesson in conservation investments. Only investment in the square meters of real estate and gold guarantee the safety of personal capital. "The house, the gold, the gun," so you can rephrase the classics with a modern twist. Obviously, once the restrictions on the withdrawal of money from the accounts of Cypriot banks are lifted, investors will surely invest in the local real estate market. Not the most expensive housing in the market will be purchased, so prices are unlikely to rise sharply. But there will surely not be collapsed. Experts note the large number of unsold property in regions such as Limassol, Larnaca and Paphos. It is assumed that the market will absorb these objects, and real estate prices will rise by 5-10%. The most significant growth is expected in Paphos, because this area was chosen by the Europeans, which is less affected by the banking crisis and are not ready to give up the habit to settle on the sunny island. And property clearlly is such a tool. The most curious thing is that European investors from Austria, Belgium, Germany and even France are likely to be interested in the Cyprus property market after the crisis. Cyprus stands out from these countries in terms of housing prices and property taxes. And given that the new tourist season is not in danger, a bright future opening up for the commercial segment of the market. Cyprus resorts attract potential investors with annual income of about 10%. We can only hope that the government of Cyprus is not crazy and is not ready yet for toughening amendments to land legislation.