Mr. Ambassador, what is the reason for the consistently high popularity of your country as a destination for investment and real estate purchases?

Before talking about Cyprus, I would like to express my sincere gratitude for the opportunity to address the readers of the respected Homes Overseas magazine.
Cyprus enjoys a good reputation as a center of international business and financial activity and shipping, playing an important role in both maritime transport and transit trade. The attractiveness of the country has increased after its accession to the European Union. Therefore, given the strategically important location of Cyprus between three parts of the world – Europe, Africa and Asia – one can undoubtedly say that it offers huge opportunities to active Russian entrepreneurs.
At the same time, Cyprus is also developing as an education center. Public and private educational institutions are under the control of the Ministry of Education and Culture, their activities are regulated by relevant legislation, which ensures high quality education. In private universities, classes are conducted in English, which attracts specialists and students from all over the world who immerse themselves in the multicultural Cypriot environment.
In addition, the country is an excellent tourist destination. Cyprus is so popular with tourists that the annual number of visitors here exceeds the number of inhabitants of the island by almost four times. The explanation for this is the rich history of the island, whose civilization has existed for 10,000 years, and its picturesque landscapes, sun and sea, and excellent tourist infrastructure, as well as the hospitality and friendliness of the locals.

What is the current state of the Cyprus economy? Has the global financial crisis affected it?

As for the impact of the global financial crisis on the economy of Cyprus, it is worth noting that, despite the global recession and the subsequent decrease in demand from foreign buyers, affecting any open and fully integrated economy, including the Cypriot one, the potential of the state remains high. According to the recently published forecasts of the European Commission, it is expected that the growth indicators of the Cypriot economy will remain positive. According to the same data, Cyprus will be one of the three Eurozone countries with the best economic indicators in 2009. In light of these optimistic forecasts, the Government of the Republic of Cyprus expects that, thanks to the solid foundations of the country's economy and a favorable tax climate, production and consumption volumes will continue to grow in 2009, despite some recession caused by the international situation.
It is worth noting that the economy of Cyprus has not been affected by the crisis related to subprime loans or "toxic assets". I also want to draw attention to the fact that, due to the healthy state of the country's banking sector and the reasonable policy of the government regarding loan and loan requirements, there are no such "toxic assets" in the financial system of Cyprus.

How important is the real estate market for the economy of Cyprus? It seems that this sector of the economy in Cyprus is more stable than in many European countries, what explains this?

Currently, the real estate market provides about 20% of Cyprus' GDP. Over the past five years, due to the country's accession to the EU in 2004, the subsequent transition to the single European currency, as well as excellent infrastructure and high quality services, domestic and external demand for real estate has increased especially. In addition, we expect that in the medium and long term there will be high interest in housing in Cyprus will remain. According to official estimates of the Cypriot government, it is expected that by 2012 the share of the real estate sector in the state's GDP will increase to almost 22%.
It should also be emphasized that a number of internal factors contribute to the growth of the real estate sector: the most important of them are the increase in population and the redistribution of investments from the securities market to the real estate sector, which have been observed over the past 8 years. Moreover, as the island's attractiveness for tourism and business grows, more and more people, having visited Cyprus during a vacation or business trip, decide to return and purchase real estate here as an investment object or "second home". Affordable prices and an understandable transaction procedure help to decide on a purchase. We are confident that the Cyprus real estate market will continue to develop.
Now there is a slight decrease in the number of construction permits issued, and in fact this can be regarded as a sign of self-regulation of this sector of the economy, trying to prevent supply from prevailing over demand, which could lead to a sharp drop in prices, which, by the way, have always been very competitive compared to other countries that have a level of development and indicators, similar to the Cypriot ones.

The degree of infrastructure development is very important for real estate buyers. What projects would you call the most promising and important for Cyprus?

As for the infrastructure facilities that are currently being worked on, two of the most important areas can be identified – the construction of new airports and parking lots for yachts. These facilities, the modern road communication system available, as well as a number of public and private projects to improve the tourist infrastructure, improve the educational system and protect the environment, will allow Cyprus to continue to be popular with both real estate buyers and vacationers.

What can you say about the possibility of reunification of Cyprus? What can this mean for potential buyers of real estate in Cyprus?

The reunification of Cyprus will undoubtedly have a huge impact on its development and attractiveness in all aspects of priority for the state, as it will make full use of the country's capabilities.
We can assess the significance of future reunification by referring to the events of 1974 and assessing the damage caused to the economy of the state by the Turkish invasion. The economic, social and political upheavals that took place in Cyprus had enormous consequences. Suffice it to say that Cyprus lost 77% of its GDP, and a third of the population was forced to leave their hometowns and villages, abandoning their homes and becoming refugees in their own country. Figuratively speaking, Cyprus was destroyed. But thanks to hard work, ingenuity, determination and a firm belief in our rightness, we managed to accomplish what is called the "Cypriot miracle", restoring the country and making it the subject of universal admiration.
Everyone understands that the reunification of Cyprus in the form of a bi-zonal, bicommunal federation, in accordance with UN Security Council resolutions, is the main goal of the people and Government of the Republic of Cyprus. This will ensure respect for the principles of justice, peace, security and stability, the possibility of additional investments and further intensive development throughout the Eastern Mediterranean. The reunification of Cyprus will give a new impetus to the already strong and healthy economy of Cyprus in general and the construction and real estate sector in particular.
In conclusion, I wholeheartedly invite all readers of Homes Overseas magazine to visit our country to enjoy their holidays and appreciate the opportunities that sunny Cyprus offers.