The Future Direction of Property in Cyprus Investment Markets

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

The Cyprus property market is highly dependent on foreign investment, and whilst a strong Euro has made southern property in Cyprus more expensive to overseas investors, 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 property in Cyprus and rental values are likely to increase for the foreseeable future.

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 property in Cyprus all year around.

What is more, winter rainfall ensures that the island is lush, green and verdant for winter, spring and early summer. All property in Cyprus can be guaranteed to be within easy reach of an area of outstanding natural beauty, including vineyards, mountain ranges and beautiful coastlines.

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.

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 property in Cyprus evaluate before making a decision to invest?

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 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. These polotics have created a locational divide in the values of property in Cyprus over the last decade.

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 northern property in Cyprus has been sporadic as its political future has remained uncertain.

The Northern part of Cyprus, remains - for the time being - governed by the Turkish Republic of Northern Cyprus. However, following a recent change in government in the southern Republic, there are high hopes that a formal accord for full re-unification of the island will follow soon, stimulating investment interest throughout the island. Owners of property in the North of Cyprus may stand to make a substantial windfall.

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.

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.