Dear readers, we have prepared for you a “balance sheet” on the future of Cyprus in terms of real estate development. This is a “things to do” roadmap, to offer some hope, but at the same time, to not dream that all is well. With Cyprus being such a small economy, little things make the economy change (our reservations about handing out money to all sorts of people by this government have been criticized in a previous article of ours).
-
Two new airports are finished and operational, albeit costly for tour operators. New private executive lounge for private jets pending.
-
The Limassol Marina is under construction with a strong financial contribution.
-
Larnaca Marina – execution unknown
-
Paphos Marina – Still pending – Time unknown
-
Ayia Napa marina on target with investors on the move.
-
A new golf project has received a permit (Larnaca), another under construction (Pafos) and another 3-4 pending (of the 10 but we recorded the ones we believe will actually be built).
-
The old town of Limassol is undergoing many renovations, including the old town and the castle area. The old fishing port is also underway with a construction schedule for 2011.
-
The new/revised planning regulations on high-rise buildings have shown positive results in Limassol. Other projects follow and the revised approach will provide an international image for this and other cities.
-
Large scale investment funds from abroad, including Dubai, Israel Cos and others (also Qatar) will have others to follow, showing interest in little Cyprus, including the last three land purchase transactions (€18.0 million + 14.0 million euros). + 7.0 million €) in Nicosia.
-
We have internal political harmony (a great asset) to the extent “allowed” by democracy.
-
We are improving the tax system in tax havens and especially in shipping, which will make Cyprus perhaps the main destination for Shipping Cos.
-
Investments in exchange for permanent residence and passport investments are a major attraction for wealthy third-country residents. Initial results are already very positive.
-
The construction amnesty is coming (but a bit late), but at least it is coming and this will address the problem of lack of title to real estate to some extent.
-
We still need a change in local attitude (check out the Hilton Hotel’s decision to leave the island because they haven’t received an operating permit since 1999!!). The relationship between private investment and red tape is terrible.
-
A Cypriot PR President is another asset to consider. Not normally found in the EU and considering our “communist” president, this is a pleasant “shock” to remember for investors.
-
A do-it-yourself Minister of the Interior who has our sympathy for his desperation in the procedures of the Public Administration is an added asset. He is trying at least.
-
Etcetera etcetera
Unfortunately, for those of us who are of a “mature” age, it will take time to realize the benefits of most of these and other projects, but we estimate that it could take 2-3 years to see the economic benefits, but at least the Politics is there and there is hope especially for new investors and the younger generation to have jobs. We have watched a BBC program about Singapore and Hong Kong about the “good” living and we can tell you that living in a 60m2 2 bedroom apartment. on the 17th floor does not encourage us to go there.
Small is beautiful, as we always say, but people must also have an income and security from their investment (see Spain with forced acquisition without compensation and 20% unemployment). Sure, like Cyprus, we have many problems, but we can look to the immediate future with some hope.