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Developments of the pending Brexit burden us with many worries. Not only we, as Cyprus, have special links with the U.K., but we are saddened by the British people who are, at this point in time (especially the business community) at a stage of wait and see.
British nationals also who live outside the UK and within the E.U. have more serious concerns ranging from pensions to health care etc. These problems are yet to surface.
We think that in this country we are in a mess with our politics, but the UK seems to have a similar problem with unknown results at the end (the Queen’s urge for cooperation of the political parties, was for the best and an example for us also to hear).
After a long history and notwithstanding the problems of unification of the E.U., here we are with one of the pillars of democracy leaving the union.
The populist politicians have carried away the British people causing that country’s loss of business, no voice in European affairs and damage to the country on a mid/long term basis.
It took one bad decision by the ex U.K. PM (Mr Cameron) with the referendum to lead us to what we are now facing.
The two protagonists of Brexit Mr Farage and Johnson a populist duo (reminding us of Guy Fawkes (who attempted to blow up Parliament) and it is now celebrated as a reminder for things not to happen.
The duo will be remembered after several years and perhaps we will establish another “celebration” of things not to do.
For us in Cyprus, which was a British Colony, it is not as easy to accept Brexit as other countries might do, especially bearing in mind our close links with the U.K.
A large percentage of Cyprus professionals were educated in the U.K., especially the older generation and there is, therefore, a special professional tie between the professionals of Cyprus and the U.K. (even those who do not study in the U.K., but in other countries they will end up in the U.K. for a postgraduate degree or will practice at some time there).
The end result is noted by the many British professionals especially in the accounting and engineering sectors, exercising their profession in Cyprus
Although the British do not form part of the main foreign demand in terms of real estate, the majority of the tourists are British (33% of the total).
This is just one part of our problem since the exchange rate with sterling being devalued by comparison to the euro will make Cyprus much more expensive, increasing competition from other competitive countries, such as Turkey and Egypt.
It is not only a matter of buying property here but also the circumstances as they develop regarding living here.
We watched a Euronews program regarding British retirees in Spain (where the number exceed 250,000) with no clear answers about their situation post-Brexit.
We need to find a way for how retirees, in particular, can live in Cyprus without problems, including red tape procedures standing in queue at the Immigration Office to secure a visa and permit to “temporary” reside in Cyprus.
Can we make an exception for the U.K. and not for other 3rd countries nationals?
Confidence and security of living especially for retirees are of paramount importance and it will be most interesting to observe how this will develop?
Will the existing British residents start selling their property to go back home(?) bearing in mind the 60,000 British who stay in Cyprus on a permanent basis will upset the market (depending on the volume of return) affecting property values/prices for all of us, including the British citizens.
So, Brexit may not affect Cyprus real estate to a great extent, but it will affect tourists and by projection the Cypriot economy, especially with the expected developments of the sterling v euro.
Be that as it may and coming back to the real estate industry, we attended the launching of the Paralimni marina where we were introduced to the Marina planners (British) the architects (British), the local architect (British educated), the environmental engineers (British educated). One example of how the U.K. may lose long/mid-term.
A good client of ours (British with a New Zealand passport) who is considering changing his passport to a Cypriot one, due to business concerns in the U.K, post-Brexit informed us that notwithstanding his wish to secure a Cyprus passport, he has not the €2mln in order to secure it (there are many like me he told us).
We have to wait and see to the end and hope that the Cyprus Government will bend over backwards and accommodate British nationals, especially during the transitional period.
