Review of property in Cyprus

Individuals looking for a retirement home or second home overseas may find their answer in a property in Cyprus. The property in Cyprus market has been booming for the last five years, but is the bubble about to burst, or can continued growth be expected?
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 introduction of low cost air carriers such as Easyjet and Ryan Air are expected to further drive visitor numbers over the next few years, which will in turn increase rental values and demand for property in Cyprus. Easyjet have already established a route servicing Paphos, whilst Ryan Air are still negotiating with the Cyprus authorities. In any event, given the growth of low cost flight carriers, affordable flights can be expected to increase.

Cyprus provides seekers of Mediterranean holidays an 'all year round' temperate climate, with Northern Cyprus having long hot summers that average 27º C. 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.

One of the most stunning features of Cyprus is the many hundreds of miles of beautiful, unspoiled and sandy beaches. For an investor in property in Cyprus it is this feature that separates Cyprus from many other Mediterranean destinations and gives Cyprus its broad appeal as a tourist location.

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 property in Cyprus likely to retain its value, is it secure, and will rental values be maintained?

In 1974, Turkey invaded Northern Cyprus after an attempt by Greece to formally annex the Island. Cyprus has remained a divided island ever since, with two separate republics established, although only the Southern Republic of Cyprus has ever been formally recognised by international bodies such as the UN.

Following the introduction of an elected government, the Southern Republic of Cyprus was formally accepted into the European Union several years ago, with the Euro 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 property in Cyprus.

Given the wide differentials that exist in property in Cyprus prices between the North and South of the island, re-unification can be expected to bring about increased property demand throughout the country, and provide real investment opportunities for the wily purchaser.

As with all investment decisions, it is wise for any potential investor in property in Cyprus to take expert advice and to ensure that full advantage is taken of any local financial and investment incentives, especially in view of the current political situation and changing policies.

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