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The situation in the property development sector has been stabilized.

As the President of the Cyprus Land and Building Developers Association Pantelis Leptos said on February 6, the property development sector continued contributing almost 20% to total GDP despite the financial crisis.

Speaking at the Annual General Meeting of the Association, the President expressed his belief that the contribution of the sector to the growth of the country has been very significant.

Despite the economic uncertainty of the past two years, during this period, the property sector has managed to attract more than €1 billion of foreign capital in the island`s economy.

Leptos reminded that in 2014, the number of properties sold across Cyprus increased by 20% compared to the previous year. In his opinion, this improvement has clearly demonstrated that the land development sector is back on track.

Cyprus property sales in 2013/2014-Comparison

Sales to overseas buyers Total sales
2013 1,017 3,767
2014 1,193 4,527

As Leptos pointed out, the Cyprus government had taken special measures in order to help attract foreign capital. According to the new immigration law, certain property buyers can be granted Cypriot citizenship or permanent residency in Cyprus in exchange for investments in the island`s economy. The new immigration schemes, which had been introduced by the cabinet in May 2013, have already proved to be very effective in attracting significant overseas investment.

Considering this new Immigration law to be one of the Cyprus property sector`s strongest cards and believing that the scheme should not only be continued but also expanded, Leptos has recently given a number of recommendations concerning the improvement of the law to the Interior Minister of the Republic of Cyprus.

The local property market also shows some signs of recovery, said Mr. Leptos, who has been a president of the Association since June 2012.

Source: “Cyprus Mail”