Welcome to PrimeStar
Estate agency in Cyprus with exclusive client care
Backed by experience in the local property market since the 1930s, PrimeStar Estates has taken on a fresh and dynamic approach to real estate.
Whether you're seeking to buy property in Cyprus, rent, sell or let, our knowhow and market insights we'll guide you through the process to make it easier, more enjoyable and rewarding. As a boutique, family-run business, our approach to real estate is to maintain a highly personalised service, ensuring utmost care, trust, quality and ultimately a better client experience.
Insights to the Cyprus property market
Whether you're buying, selling, renting or leasing in Cyprus, understanding local property market trends is key to making the right decisions. Take the time to research; from home loans/financing options, legalities, to tax info. Above all, understand the investment conditions, including macro economical situation, true market prices, property's immediate location, proximity and accessibility, whilst benchmarking available options.
Property market in Cyprus:
- Diverse property types across Cyprus
- Excellent luxury and higher-end property offering
- Member of the EU and with a location central to the EMEA region
- Real estate proven to be resilient as a long-term investment, especially with prime luxury assets
- Associate business services, i.e. immigration, tax & professional services
- Excellent living conditions; safe, healthy, good climate, culture, nature, and great food
Property market in Cyprus
Cyprus is well known as a favourable property market in Europe and the Mediterranean region, particularly due to offering ideal living conditions and a connection to the European Union (EU) - overall an ideal destination for relocations (families and individuals), immigration and Cyprus passports to the EU, business residence, holiday homes, retirement, as well as general investment in property assets.
Overall, Cyprus offers excellent living conditions, with a warm Mediterranean climate, safe and affordable lifestyle, diverse and liberal, variety of cultural and entertainment options, excellent cuisine and produce, as well as diverse nature within very close proximity.
This attraction has ensured the residential market in Cyprus remains strong. Property relating to business and commercial sectors also continue to grow rapidly, since the country maintains its leading position as professional services location and unique gateway between the EU/Europe, and the wider European, Middle East and African region (EMEA). This includes having one of the lowest and friendliest corporate taxation systems in the EU, together with many other associated benefits to business.
Economy in Cyprus and how it relates to real estate
Over the last two decades, real estate and construction in Cyprus boomed, offering excellent opportunities for investment, as well as for those endeavouring to retire, relocate, or purchase a holiday home in the Mediterranean. The UK, European and Russian-CIS property seekers were particularly buoyant during this period. In turn, this caused a considerable rise in construction activity and in property prices, particularly with residential, whilst injecting further drive into the national economy.
However, this fast boom in property supply was soon met with economic downturns, globally, regionally in Europe, and inherently locally. In turn, the property market in Cyprus remained rather stagnant and even dropped in transactions and prices.
Despite challenges in the macro economy and more specifically the country's financial sector post 2008, as impacted by these economic downturns, Cyprus' property market recovered not long after, albeit gradually. No doubt, a better economic situation in the country drove real estate growth, as foreign investor sentiment improved, lower unemployment fuelled domestic activity, stimulus packages encouraged activity, and as new significant growth sectors stimulated longer-term possibilities. This is especially true with newly discovered energy resources, stable professional business/corporate services, and now popular Cyprus-EU citizenship/residency schemes directly linked to real estate.
Economy & investment environment:
- Cyprus' economy back to growth, with a positive outlook
- Upgrading by International Rating Agencies & lenders
- Proven resilient economic sectors, such as in professional services, tourism, maritime/ship management, and real estate
- New emerging sectors to boost economic activity, including natural gas resources and Cyprus-EU citizenship/residency schemes in association with property purchasers
Cyprus' economy has proven to be resilient & is now back to sustainable growth
"The economy is now stabilised. Cyprus returned to the markets. Our financial system has been consolidated and made great progress. International Rating Agencies as well as our international lenders at last evaluate Cypriot banks and our economy with continuous positive grades." - President of the Republic of Cyprus
"The financial situation of the banks is gradually improving, and there is tentative evidence that the slow pace of debt restructuring is picking up. The fiscal targets in the first half of 2015 were met with substantial margins. In addition, the authorities are making progress on their structural reform agenda. The authorities' commitment to the program is bearing results in several areas, with the economic recovery starting in early 2015 and unemployment starting to decline from still-high levels." - Report of staff teams from the International Monetary Fund (IMF) and the European Commission (EC), in liaison with the European Central bank (ECB)
Many years of an excellent economic situation
In general, Cyprus's economy is characterised by robustness and macroeconomic stability, as evaluated by the European Commission, International Monetary Fund and other major international economic organisations. Key macroeconomic indicators such as Real GDP Growth, Inflation and unemployment rate have over the last decades verified the country's economy's progress and strength.
The Cypriot economy has for decades been praised for its resilience and growth, driven by its strong export sector in financial and professional services, tourism, and then later emerging in education, pharmaceuticals, as well as in real estate and construction. Indeed, a healthy inflow of foreign investments from Europe, Russia, CIS and the Middle East, as well as a more conservative approach by government and the banking sector has helped maintain economic expansion. Emerging ties with BRIC countries, especially Russia, China and India will provide extremely beneficial, as will on-going relationships with the EU, US and the Middle East.
Pre-financial downturn, the economy in Cyprus enjoyed incredible prosperity. Between 2000 and 2005, real GDP in Cyprus grew by an average of 3.6% per annum, which compared very favourably to the EU average. This was accomplished in an environment of full employment, low inflation and a stable currency. Momentum in growth was particularly enjoyed at the turn of the century, and again later when the country entered the EU and Eurozone. Real GDP growth has also consistently performed better than its fellow EU and Eurozone countries and was more resilient during the downturn.
As with all global economics, Cyprus too was affected by the external economic environment, and as such, was impacted by the Global Financial Downturn, and then later the economic downturn in Europe. Following the credit crunch and financial downturn in 2008 and 2009, Real GDP Growth in Cyprus slowed to -1.7%, however was still much more resilient than the EU27 average of around -4%, as well as better than most of the developed world.
Cyprus macro economic situation & outlook
Following the economic downturns around the world and in Europe, Cyprus was forced to take swift measure to reinforce conditions, including reforms in the public sector, and better diversification of the economy in general. At the same time, the market remained wary of external economic consequences, with developers and financial lending institutions taking a much more cautious and conservative approach. The goal was to consolidate and stabilise during such uneasiness.
Being a smaller, tight-knit economy, Cyprus was in a much easier position to instigate important changes at the core, and implement new action to reignite economic growth. At the same time, focus remained on key stronghold economic sectors/pillars, namely professional services, tourism, maritime/ship management, real estate and construction, as well as education. All of which have proven to remain strong and growing.
The country is now well and truly seeing the result of dedication and commitment, together with prospects in new emerging sectors. More recently, the country discovered vast natural gas and possibly petroleum reserves in the island's south basin. These are currently being extracted with major multinational companies. No doubt, Cyprus' economy should receive a massive boost from these developments; and spill over to all other key sectors. For more information about investment and economic activity in Cyprus and the EU, click here