Investment review of 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 World Travel and Tourism Council predicts that visitor numbers to Cyprus are likely to increase by 4.5% annually for the next five years, driven by increasing demand for overseas holidays and cheaper flights provided by low cost flight carriers. This means that demand for Cyprus property and rental values are likely to increase for the foreseeable future.

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.

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.

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 established 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.

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 the region#s political future has remained uncertain.

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

If investing in Cyprus sounds an appealing option, it is wise for any potential investor in Cyprus property to take expert advice to check the legal requirements before purchasing, 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 ofproperties in Cyprus together and contains 1000's of Cypriot properties for sale across all the top locations including Peyia, Kato Pafos, Oroklini