Who’s Actually Investing in Property in Cyprus?

Ever since at least 2001 we’ve had talk of a marina being built in the Coral Bay area of Cyprus close to Paphos, ever since 2003 we’ve had talk of a significant business centre/hospital/university complex being constructed in Paphos, ever since budget airlines became known in the main stream media as ‘budget airlines’ we’ve had talk that they’re about to open new and affordable routes to Larnaca - and all of these ambitious plans are continually shoved in the face of anyone who dares suggest that Cyprus is losing its appeal in favour of tried and tested destinations such as Spain or France or emerging cuties like Turkey or Croatia for example.

But excuse us asking - when exactly will any of these ambitious plans be realized, come to fruition or even begin construction?  Could it be that all of these plans are actually backed by nothing more than hot air and hope rather than genuine and sustainable investment commitment because after all, who’s actually investing in property in Cyprus anymore?

Read the news, search the internet…you’ll find plenty of ‘evidence’ that Cyprus is still a number one location for buy to let property investment or it’s a great place to buy off plan and flip your property on to international market demand hungry for a place in the sun or a retirement home in a low tax country – alternatively, why not buy your own pad and rent it out when you’re not using it – after all, Cyprus has 320 days of sunshine a year (it doesn’t but never mind)…and the Cyprus hoteliers have nothing against you muscling in on their patch.

Indeed, South Cyprus is a great place to invest according to everything you’ll read – but read a little closer.  Chances are your source is an estate agent, a property developer, a travel agent, someone with a strongly vested (financial) interest in promoting Cyprus.  Nothing wrong with that of course, loads of countries use active promotional techniques and it’s in the best interests of anyone anywhere in the world attempting to flog houses or holidays to tell you that their country’s best – but when you start searching for cold hard facts about rental returns, yields, capital appreciation, tourism numbers, predicted growth forecasts for tourism or foreign direct investment commitment etc., there’s scant in the way of positive factual evidence to say things are looking well for the Cyprus property market.

So, again the question has to be asked – who’s actually investing in property in Cyprus? 

Is there just a slight chance that house prices and interest levels have peaked and there just isn’t the money to back any of the aforementioned ambitious plans?

Sorry but we don’t have the answers…think of it as a rhetorical question!  We’re as responsible as the next property investment publication because we include the Republic of Cyprus in our list of nations worthy of closer inspection…

What we can tell you is that Monarch Airlines have opened up a cheap flight route from Luton to Larnaca and that you can already get cheap flights depending on how well in advance you book from the likes of Thomas Cook.  This bodes very well indeed for the island. 

We can also tell you that the South Cyprus authorities are very switched on and offer an attractive tax rate on pension income so Cyprus will remain an attractive location for retirees…

So, there is demand for property, Cyprus is relatively affordably accessible, it does have a good climate for a large percentage of the year (but you do need central heating) and the fact that the island is incredibly beautiful, the people are genuinely lovely and the food is fantastic will keep people coming back to Cyprus and will ensure others discover it for the first time.  But we’re not 100% convinced that Cyprus is the best place for property investment just at the moment – but as we always say, our opinions are ours alone, they are not meant to lead your decision making.

Special Reports: Property News for Cyprus

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

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