Cyprus Property Investment

Cyprus is due to adopt the Euro as its official currency by 2008 at which point it has been estimated that the cost of borrowing will be reduced substantially as interest rates in Cyprus will have to be slashed to meet the European Union’s standard.  A brand new Cyprus property investment fund has been launched in a bid to position itself in the Cypriot real estate market ahead of the expected boom that this reduction in interest rates is expected to cause in the property market.

The launch of the new Cyprus property investment fund is being overseen and advised upon by the real estate investment specialists at Assetz and it offers investors seeking alternatives to direct investment in a single property a broad range of diversification opportunities from a very low initial investment commitment.

Investment into property in Cyprus remains an incredibly attractive choice for many – firstly property prices in Cyprus remain far lower than in Spain for example, furthermore many astute developers construct apartment and villa communities after agreeing a rental contract with a specific tour operator thus offering a potential buyer a guaranteed level and duration of income from their property investment.  According to Assetz‘s analysis of the property market in Cyprus, 2005 brought average capital appreciation of around 15% with average rental yields achievable in Cyprus a comfortable 8%.  All of these factors mean that Cyprus remains one of the most attractive European marketplaces for property investors looking for sunshine rental units.

However, as any property investor will tell you, committing to purchase a specific property restricts the investor in many ways.  Firstly they have to tie up large sums of capital, they may then have to afford property finance, they will have to manage the ongoing rental and maintenance of their property asset and they will not be able to withdraw their money at a fixed point in time nor will it necessarily be easy to actually sell their property asset when they want or need to.  For those who are looking for alternatives to straight buy-to-let property investment for example, the new Cyprus investment property fund offers an exciting and excellent alternative.

The fund, and others like it that have already been launched, generally buy a combination of residential and commercial properties, they buy into existing developments with guaranteed rental traffic and they look at real estate that can be let to both the domestic market, the tourism market and the growing student market in Cyprus meaning that the fund buys a diverse range of properties across a diverse range of property market sectors and lets, rents or leases real estate to as broad a range of individuals and companies as possible.

Diversification is the key to reducing overall risk which is why a property investment fund is also a great vehicle for those who love the idea of capital appreciation and rental yields but who shy away from direct property management. 

And finally, according to Assetz this latest Cyprus property investment fund has a great added bonus for British investors – it is suitable for all those who wish to purchase property through their Self Invested Personal Pensions with the lowest financial commitment possible currently in the region of GBP 5,000.

Special Reports: Property News for Cyprus

Cyprus Property Buying Process
Property investors interested in the Republic of Cyprus face a relatively straightforward real estate purchase process but high purchase costs

Cyprus for Property Investors
Property investment in Cyprus: A comprehensive look at the property investment and real estate market in Cyprus and its growth potential.

Cyprus Property Investment Guide
The immediate potential for impressive capital growth and strong rental yields makes Cyprus an unrivalled investment property hotspot.