Future Prospects for the Property in Cyprus Investment Market

Individuals looking for a retirement home or second home overseas may find their answer in a property in Cyprus. The property in Cyprus market has been booming for the last five years, but is the bubble about to burst, or can continued growth be expected?
Following the adoption of the Euro by the Republic of Cyprus earlier this year, the relative cost of property in Cyprus has increased with a corresponding drop in foreign investment interest. However, re-introduction of fiscal policies such as tax breaks and incentives for overseas property owners domiciled in Cyprus, along with changes in domestic politics means that investment interest in property in Cyprus is surging, especially in the north of the country.

The introduction of low cost air carriers such as Easyjet and Ryan Air are expected to drive visitor numbers to Cyprus over the next few years, which will in turn increase rental values and demand for property in Cyprus. Easyjet have already established a route servicing Paphos, whilst Ryan Air are still negotiating with the Cyprus authorities to establish a new route. In any event, given the growth of low cost flight carriers, affordable flights can be expected to increase, increasing visitor numbers.

What is more, increased rental demand for property in Cyprus can be expected to be maintained all year around. Like many other Mediterranean locations, Cyprus has a temperate climate that provides warm sunny winter days as well as a reasonable guarantee of long hot summers, with temperatures that can be expected to reach 30 degrees centigrade. This makes Cyprus a perfect location for individuals who would prefer to avoid the colder winters of the north European hemisphere.

Vineyards and a diverse range of natural flora grow all year round in the temperate climate, giving the island a lush, green appearance. Whichever region an investor chooses to buy a property in Cyprus, it will be within easy reach of stunning mountain ranges, sandy beaches, and quaint and historic villages and towns, giving Cyprus a 'year long' visitor appeal.

One of the most stunning features of Cyprus is the many hundreds of miles of beautiful, unspoiled and sandy beaches and coastlines. For an investor in property in Cyprus it is this feature that separates Cyprus from many other Mediterranean destinations and gives Cyprus its broad appeal as a tourist location.

Features such as the natural beauty of Cyprus, the miles of unspoiled coastline, climate and history are unlikely to change significantly in the future. However, what political and economic considerations must a potential purchaser of a property in Cyprus evaluate before making a decision to invest?

Throughout its history, the island of Cyprus has held a strategic importance as a result of its location between Turkey, Syria, Israel and Palestine. This has meant that the island has been the subject of repeated invasions by different regional powers over the centuries giving it a diverse and varied history. This pattern has been repeated in modern times, with the invasion of Northern Cyprus by Turkey in 1974 and the division of Cyprus into Northern and Southern Republics.

Following the introduction of an elected government, the Southern Republic of Cyprus was formally accepted into the European Union in 2003 and the Euro was formally adopted as the local currency in February 2008. This has provided political and economical stability to the South of the island, which has prospered in the last five years. Given the importance in foreign investment and tourism to Cyprus, the Republic has enforced a wide range of domestic fiscal incentives to attract overseas funds with the result that there 20% annual growth in the value of property in Cyprus throughout this period. However, in view of the North - South divide this investment has not been evenly distributed across the island.

Given the wide differentials that exist in property in Cyprus prices between the North and South of the island, re-unification can be expected to bring about increased property demand in the North of the country and provide real investment opportunities for the wily purchaser.

As with all investment decisions, it is wise for any potential investor in property in Cyprus to take expert advice to ensure that all local requirements are met by any potential property, and to ensure that full advantage is taken of any applicable financial and investment incentives.

Steven Clarke - Marketing Manager for www.cypruspropertyclub.co.uk. Cyprus Property Club brings buyers and sellers of properties in Cyprus together and contains 1000's of Cypriot properties for sale across all the top locations including Peyia, Kato Pafos, Oroklini