Cyprus property: A Good Bet for Investors?

Individuals looking for a retirement home or second home overseas may find their answer in a Cyprus property. The Cyprus property 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 Cyprus property has increased with a corresponding drop in foreign investment interest. However, re-introduction of fiscal policies such as tax breaks and incentives for property owners domiciled in Cyprus, along with changes in domestic politics means that investment interest in Cyprus property 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 over the next few years, which will in turn increase rental values and demand for Cyprus property. Easyjet have already established a route servicing Paphos, whilst Ryan Air are still negotiating with the Cyprus authorities. In any event, given the growth of low cost flight carriers internationally, affordable flights can be expected to increase with a correspondng increase in the rental value of Cyprus property located within easy reach of airports.

Cyprus provides seekers of Mediterranean holidays an 'all year round' temperate climate, with Northern Cyprus having long hot summers that average 27 degrees. Winter days are generally sunny with temperatures that rarely drop below 12 degrees centigrade, which means that any overseas property investor has a reasonable prospect of finding rentals for their Cyprus property during winter, spring or summer.

What is more, winter rainfall ensures that the island is lush, green and verdant for winter, spring and early summer. All Cyprus property can be guaranteed to be within easy reach of an area of outstanding natural beauty, including vineyards, mountain ranges and beautiful coastlines, giving the island broad visitor appeal all year around.

Additionally, one of the most stunning features of Cyprus is the many hundreds of miles of beautiful, unspoiled and sandy beaches. For an investor in Cyprus property 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 Cyprus property evaluate before making a decision to invest?

Following the invasion of Northern Cyprus by Turkey in 1974, the island has remained divided into two separate republics. However, only the southern Republic of Cyprus has been recognised by international bodies such as the European Union and the United Nations. Investment incentives for Cyprus property in the North of the country have been limited, creating a differential in property prices.

However, things are changing. Following a number of key political concessions, the Southern Republic of Cyprus now has full EU membership and has recently adopted the Euro, both of which have provided economic stability and prompted heightened investment in Cyprus property over the last five years.

International Political incentives and domestic changes make the prospect of a long term settlement forseeable in the near future, and this, combined with EU investment in the North of the country and a real prospect of a reunification are prompting heightened interest in Cyprus property investment, in both the North and South of the country. It is clear that a substantial number of investment opportunities exist.

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