Student Property and investment by overseas property investors is helping to boost the Cyprus property market, according to the latest internet research by KPMG.
The research shows that student accommodation has seen a strong growth over the last year, with an estimated 97 per cent increase in the number of available rooms from 2017 to 2018.
This year is expected to add another 16 per cent to the existing stock of accommodation units. The number of university and college students saw a strong growth of 8.4 per cent, which is reflected in the increasing demand for student accommodation units.
Unsurprisingly, Nicosia is the dominant city with regard to student accommodation units, as most of the major universities and colleges are based in the capital.
The number of students in post-secondary education in 2016/17 academic year rose 8.4 per cent to 44,446.
In addition, high value residential property transactions exceeding €1 million have been exhibiting a remarkable increase in the past few years.
Limassol is the key player of growth, with more than half of the transactions made in the coastal city in every year since 2016.
Some 65 per cent of high value residential property transactions are priced between €1-2 million, with 27 per cent in the €2-3 million range and 8 per cent over €3 million.
The biggest volume for high value residential property transactions in Limassol are flats. In contrast, the Paphos market for high value residents is dominated by luxury homes.
KPMG said the various government incentives have not only increased domestic demand but have also led to a surge in demand from overseas property investors; such measures include the abolition of immovable property taxes, schemes for permanent residency and naturalisation of investors by exception.
It seems that the Cyprus property market is back on track, boosted by student accommodation and foreign interest in luxury property.