Future Growth for Property in Cyprus

For anyone developing an overseas property investment portfolio, investment in property in Cyprus could provide high levels of investment return.

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 property owners domiciled in Cyprus, along with changes in domestic politics means that investment interest is surging, especially in the north of the country.

The island of Cyprus is serviced by at least three different airports, with international flights accepted at Larnaca International, Nicosia and Paphos prompting low cost air carriers to set up air routes to the island. Increased budget air travel can be expected to drive visitor numbers, and the World Travel and Tourism Council is predicting an annual increase in visitor numbers of 4.5% to Cyprus this year. This will result in increased demand for property in Cyprus and increased property prices and rental values.

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 property in Cyprus during winter, spring or summer.

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.

Cyprus boasts many miles of beautiful and unspoiled sandy beaches, with numerous deserted peninsulas and undeveloped areas. For the Mediterranean, this is a fairly unique feature and gives the holiday maker who is seeking peace and quiet a wide and varied range of potential destinations.

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 property in Cyprus must take into consideration when making an investment decision.

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.

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 property in Cyprus over the last five years.

Recent political changes combined with EU investment in the North of the country offer a real prospect of a long term settlement and reunification in the near future. This is prompting heightened interest in property in Cyprus investment, in both the North and South of the country.

As with all investment decisions, it is wise for any potential investor in property in Cyprus to take expert advice to carefully check that any potential purchase meets local planing and building regulations, 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