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Spain’s New Property Tax May Shift Investor Focus To Cyprus

by THEFUTURE.TEAM

January 17, 2025

Spain’s decision to introduce a 100% property tax on purchases by non-EU residents, announced on 15th January, is poised to alter the dynamics of the real estate investment landscape in Europe. While the move aims to address Spain’s mounting housing crisis, it could inadvertently divert foreign investors to other markets, including Cyprus.

Tackling Spain’s Housing Crisis

The tax, a bold initiative by Spanish Prime Minister Pedro Sánchez, is intended to curb soaring property prices and ensure affordability for locals. Spain has faced a significant shortage of housing, worsened by high inflation, rising interest rates, and insufficient new construction. In 2023 alone, non-EU residents purchased 27,000 properties in Spain, with many acquisitions driven by profit motives rather than personal use, Sánchez noted.

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The lack of available housing has sparked frustration among the local population as demand continues to outstrip supply, further driving up prices. This new tax is part of a broader strategy to prioritize housing for residents and stabilize the market.

The Cyprus Perspective

As Spain tightens its regulations, some investors may look elsewhere, and Cyprus could emerge as an attractive alternative. Pavlos Loizou, CEO of the analytics firm Ask Wire, suggests that while changes in Spain might present opportunities for Cyprus, the overall impact is likely to be limited.

The Cypriot rental market has already seen significant investment, and the entry of new players may not drastically shift the status quo. Moreover, Loizou highlighted that Greece has also introduced tighter regulations, including restrictions on short-term rental licenses and a sustainability tax for platforms like Airbnb, which could steer investors towards more lenient markets like Cyprus.

In Cyprus, short-term rentals remain relatively unregulated. Although the government has established a rental property registry, less than 40% of properties are formalized, leaving room for investors to operate with fewer restrictions.

Broader Implications For The Region

UK analysts suggest that Spain’s tax reforms may deter non-EU investors, prompting them to seek out markets with more favorable conditions. Cyprus and Greece, along with larger markets like Turkey and Italy, are well-positioned to benefit. However, experts caution that regional competition could limit significant growth in demand for Cypriot properties.

An Evolving Landscape

While the new Spanish tax has raised concerns among foreign investors, Cyprus may attract those seeking less restrictive property markets. However, sustained demand will depend on the government’s ability to strike a balance between regulation and investment incentives. In the meantime, Cyprus remains a promising, albeit competitive, alternative for property investors navigating Europe’s shifting real estate landscape.

The Decline Of Smartwatches: A Turning Point In The Wearable Tech Industry

by THEFUTURE.TEAM

March 13, 2025

For the first time in history, the smartwatch market is facing a significant downturn. Shipments are expected to drop by 7% in 2024, marking a major shift in a segment that has been growing steadily for over a decade. A report by Counterpoint reveals that while Apple still holds the top spot, its dominance is being challenged by a surge from Chinese brands like Huawei, Xiaomi, and BBK. Even as the overall market struggles, some companies are thriving.

The Big Picture: Why Smartwatches Are Slowing Down

Apple’s flagship products have long been the driving force in the smartwatch market, but even the tech giant is feeling the pressure. The company’s shipments are projected to fall by 19% this year, though it will remain the market leader. Meanwhile, brands from China are capitalizing on the shift, with Huawei showing an impressive 35% growth in sales, driven by the booming domestic market and a broad range of offerings, including smartwatches for kids.

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Xiaomi, too, is experiencing remarkable success, with a staggering 135% increase in sales. In contrast, Samsung is seeing more modest growth, up 3%, thanks to its latest Galaxy Watch 7 and Galaxy Watch Ultra series.

While some companies are succeeding, the broader market is facing headwinds. The biggest factor behind the overall decline is the slowdown in India, where consumer demand for smartwatches has stagnated. The segment is suffering from a lack of innovation and fresh updates, leaving many consumers with little incentive to upgrade their devices. Add to that market saturation, and it’s clear why many users are content with their current models. The Chinese market, however, is bucking the trend, showing 6% growth in 2024.

A Glimpse Into The Future

Looking ahead, the smartwatch market may begin to recover in 2025, driven by the increasing integration of AI and advanced health monitoring tools. As these technologies evolve, the industry could see a resurgence in demand.

Huawei’s Remarkable Comeback

Huawei’s impressive performance in the smartwatch space signals a broader recovery for the company, which has been hit hard by US sanctions. Once the world’s largest smartphone maker, Huawei’s business was decimated when it lost access to advanced chips and Google’s Android operating system in 2019. But in China, Huawei has maintained its dominance, with its market share growing to 17% in 2024.

This resurgence was partly driven by the launch of the Mate 60 Pro, a smartphone featuring a 7-nanometer chip developed in China. Despite US sanctions, the device surprised many with its capabilities, a testament to China’s rising investment in domestic semiconductor production.

In February, Huawei also unveiled its Mate XT foldable smartphone, the world’s first device to fold in three directions. Running on HarmonyOS 4.2, Huawei’s proprietary operating system, the phone further demonstrates the company’s resilience and ability to innovate despite international challenges.

Huawei’s smartwatch offerings are also catching attention, particularly the Huawei Watch GT 5 Pro, which launched in September of last year. With a premium titanium alloy design, a high-resolution AMOLED display, and impressive health tracking features, the GT 5 Pro has become a standout in the market, available to both Android and iOS users.

A Brief History Of The Smartwatch Revolution

The smartwatch market has had its fair share of milestones, but the real breakthrough came in 2012 with the Pebble, a Kickstarter-funded project that raised over $10 million. Pebble introduced the world to smartphone integration, app downloads, and long battery life, becoming the first truly mass-market smartwatch.

In 2013, Samsung entered the game with the Galaxy Gear, marking its first attempt at wearable tech. But it was Apple’s entry in 2014 that truly set the industry on fire. The Apple Watch’s sleek design, integration with iOS, and emphasis on health and fitness catapulted it to the top of the market, establishing a standard that many other brands would try to follow.

By 2021, the smartwatch industry had grown to over $30 billion in revenue, with annual growth reaching 20%. Yet now, it finds itself at a crossroads, with innovation stagnating and market saturation taking a toll.