Future Growth Trends for Cyprus Property

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?

The Cyprus property market is highly dependent on foreign investment, and whilst a strong Euro has made southern Cyprus property more expensive, there are a range of other factors that are expected to increase holiday market demand and letting rates in both the north and south of the island in the years immediately ahead.

The introduction of cheap flights through carriers such as Easyjet and Ryan Air will go a long way towards boosting tourism and at least one important route has already been established into Paphos, with a corresponding increase in local Cyprus property prices. Ryan Air are still negotiating with the Southern Cyprus Republic to gain a viable route into Larnaca international airport, and Nicosia also has the potential to handle budget airline flights.

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 means that there is visitor demand for rental of Cyprus property all year around.

Vineyards and a diverse range of natural flora grow 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.

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. This combination of climate, local attractions and location means that an investor has a reasonable prospect of securing rentals for their Cyprus property throughout the year.

However, there is far more to an overseas investment decision than consideration of the location and climate alone. Politics and economic considerations are equally important, and the situation in Cyprus remains complex. Is a Cyprus property likely to retain its value, will it remain secure, and will rental values be maintained?

As readers will be aware, the political situation in Cyprus is complex. 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 of conquest 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. As a direct consequence of this, investors have seen a far higher return to date on Cyprus property based in the South, but all that may be about to change.

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 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 with major growth that has reached 20% annually in the value of Cyprus property located within the Southern republic. This rate of growth in Cyprus property values has not been mirrored in the North of the island.

Whilst a 'North - South' divide remains in Cyprus property prices in 2008, Northern Cyprus property received an initial boost after the disestablishment of border crossings in 2005. Furthermore, recent improvements in the political situation have increased the likelihood of a long term settlement and resolution of the dispute that has kept Cyprus divided into its northern and southern regions for the last two decades. If a settlement is reached, Cyprus property prices can be expected to boom, and especially in the North of the country.

As with all investment decisions, it is wise for any potential investor in Cyprus property to take expert advice on the local laws and economic situation before committing their money overseas, 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