Crowdfunding can help the Cyprus Property Market back on its feet
- Mar 18, 2017
- 2 min read
Eight years after Cyprus' property bubble spectacularly burst, a local startup is helping to get the Cyprus real estate market back on its feet, using crowdfunding.
C4F connects Cyprus Real Estate with people who want to invest, but on a smaller scale: The minimum investment is €1,000, though for bigger projects it can be a higher amount.
While the notion of Property Crowdfunding is not new in places like USA & UK where more than 200 different real estate crowdfunding platforms now exist, the idea could have a big impact in Cyprus where property investors still reeling from the 2008 crash may want to invest, but don’t have a large amount of capital upfront.
Between 2003-8, Cyprus real estate prices ballooned to more than 300% what they had been. But when the housing bubble burst in 2008, prices plummeted more than 50% and the construction industry collapsed, leaving hundreds of thousands out of work and home-owners in debt.
But recent indicators have shown Cyprus' economy and the real estate market, are improving, making the country more appealing for investment. And C4F believes that not just those with lots of cash on hand should be able to reap the rewards.
Cyprus Online (COL) wanted to launch a property fund to invest in the Cyprus real estate market. There were indicators that it would start going up after so many years of going down. But most property investors only wanted to invest in small amounts. COL came to the conclusion to start C4F (a real estate crowdfunding platform), so that anyone could invest what they wanted and benefit from the Cyprus property market.
Though the website is currently not automated COL plans to launch a fully automated real estate crowdfunding platform in 2017 and make it available to a much larger audience.
Cyprus' gradually growing economy is not only fostering more interest from investors - it's also creating more opportunities for the Cyprus Real Estate market.
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