Cyprus Property Market for Second Home Purchasers

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?

Foreign investment in Cyprus property has dropped in recent months as a result of the 'credit crunch' and a strong Eruo. However , despite the fact that the pricing of Cyprus property is strongly dependent on the level of foreign investment, there is strong potential for growth in the both the North and South of the Island.

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, with the growth of low cost flight carriers affordable flights can be expected to increase.

Tourism is the primary industry of Cyprus, with year long demand for rental of Cyprus property, and for good reason. Cyprus boasts a sunny climate all year round, with long hot summers that average 27 degrees centigrade in the north, and 30 degrees in the south. Winters are mild, and the temperature will rarely drop below 12 degrees centigrade, making it an ideal tourist destination at any time of year.

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 Cyprus property, 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.

The greatest attraction of Cyprus to tourists and potential investors in Cyprus property is the fact that the island is surrounded by hundreds of miles of open, sandy beaches. Investors can choose a location that provides miles of undeveloped seafront locations, or can choose to buy a property within easy read of beaches that are close to developed and lively tourist areas. A typical example of location that meets this description is Ayia Napa, which services the young adult and family holiday markets very effectively.

These features of the island of Cyprus are relatively unlikely to change in the near future, and all of them represent good reasons for potential buyers invest. However, there are a number of political issues that a potential purchaser of a Cyprus property must take into consideration when making an investment decision.

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.

Southern Cyprus has prospered well following its entry into the European Union in 2003 and the Republic's recent adoption of the Euro. However Northern Cyprus has lagged behind in investment terms, and development of Cyprus property has been sporadic as its political future has remained uncertain.

The Northern part of Cyprus, remains - for the time being - governed by the Turkish Republic of Northern Cyprus. Following a recent change in government in the southern Republic, there are high hopes that a formal accord for full re-unification of the island will follow soon, stimulating investment interest throughout the island.

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. This is especially true of Cyprus.

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