Investing in Cyprus property for Retirement

For anyone developing an overseas property investment portfolio or seeking a retirement home, investment in Cyprus property could provide high levels of investment return or provide an idyllic location for a second home.

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 easy access, and at least one important route has already been established. Easyjet currently flies into Paphos airport, and Ryan Air are still negotiating with the Southern Cyprus Republic to gain a viable route into Larnaca international airport.

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.

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.

Of greatest appeal to tourists and potential investors in Cyprus property, is the fact that the island of Cyprus is surrounded by hundreds of miles of open, sandy beaches. Investors can choose a location that provides miles of undeveloped seafront locations, or beaches near to developed and lively tourist areas such as Ayia Napa, which are ideal to service the young adult and family holiday markets.

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.

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 with major growth in the value of Cyprus property.

Whilst a 'North - South' divide remains in Cyprus property prices, Northern Cyprus properties have received a boost after the disestablishment of border crossings in 2005. Furthermore, recent improvements in the political situation have increased the likelihood of the development of the long term resolution of the dispute that has divided Cyprus into its northern and southern regions.

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.