It is time (and has been for a long while now) to consider the creation of joint venture companies for real estate investments in Cyprus.
The parameters for such investment are currently positive and we enumerate some of these factors:
· Interest rates on deposits are practically zero both locally and abroad.
· Foreclosures are abundant to the extent undertaken by financiers and investment firms who have acquired loans and in many cases sell at reasonable prices.
· Opportunities appear in certain sectors of Cyprus Real Estate such as residential (apartments) to let, especially in towns and close to universities and colleges showing returns of 4%-6% p.a.
· Holiday villas and complexes suitable for Airbnb lets show constant improvement and net returns of around 10%.
· Plots for development land especially near/seaside areas are reducing with the added developments undertaken, even at locations that now seem to be distant from immediate development potentialities.
· Small office buildings in the region of 1,000-2,000 sqm of a high-tech nature are worth looking into. Expected average rate of return 5%-7% p.a.
· Commercial (shop) units be they scattered but in suitable locations such as in the tourist areas and high streets, is something to examine with a return of 6%-8% p.a.
There are plenty of people with excess cash but who may not be willing to invest the total of their hard-earned money in such real estate investments.
So, budget for around €100,000-€300,000 per participant, depending on the number of participants and the volume of investment.
Aim for a total investment of €2-€5 mln in total and avoid bank loans (be it that bank charges are nowadays around ±3% and not expected to increase soon).
Use excess cash and do not borrow necessarily to get into such ventures and try to join your financial partners with people you know.