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Posted On: 22/04/2010
Qatar has signed a deal with Cyprus to develop a hotel, office and residential complex in the capital Nicosia, targeting rising numbers of visitors to the east Mediterranean island.
According to reports, the Cypriot government and the Qatari Diar Real Estate Investment Company have agreed on the formation of an equal shares Joint Venture to develop the luxury leisure complex, with an initial investment thought to be over 150 million dollars.
The deal was signed during official talks between delegations of Cyprus and Qatar, headed by President Demetris Christofias and the Emir of Qatar Sheikh Hamad Bin Khalifa Al Thani at the Preidential Palance in Nicosia. It was one of several deals signed during the talks.
Negotiations over the levels of investment from each side are still ongoing, but both side will hold a 50% share. The 5 star hotel is to come in the first phase, with offices and apartments following in the second phase. The deal has since been approved by the Cypriot Parliament.
Cyprus needs as much of this positive news as it can get in order to kick-start the market, which was hit extremely hard by the title deeds scandal and the international financial crisis in 2009.
This will undoubtedly increase confidence that Cyprus tourism is still very much a growth sector. The residential property market could benefit from this down the line, as private investors seek to capitalise on the strong yields afforded by the low prices of Cyprus property.
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