Reasons to Invest in Property in Cyprus Before 2008

We’ve been accused of being recklessly bullish in our approach to the investment property market in Cyprus - but far be it from us ever to dictate where anyone is best advised to place their money, especially when it comes to investing in something as risky and illiquid as property!  As always we’re just highlighting facts, figures, market sentiment and expert opinion as and when we find it for you dear readers - and sometimes we put it into perspective according to the sentiment in this office as well.

In this article we’ll be highlighting reasons why market experts are pushing investors to commit to property and land investment transactions in Cyprus prior to 2008 for increased profit potential over the medium term.

On the first of January 2008 two very significant happenings are scheduled to occur in the Republic of Cyprus and it is predicted that both will have a dramatic effect on real estate prices in Cyprus – so much so that those who buy in now stand to profit and those who leave it too late may well be kicking themselves according to some.

The first event is that Cyprus takes on the official European currency, drops the Cyprus pound and locks in to the euro for good.  When the euro was adopted in Germany it took on the nickname ‘the teuro’ which is a play on the words ‘teuer’ meaning expensive in German and ‘euro’ because there was a perceived overnight bought of extreme inflation following the adoption of the currency. 

Many are certain that Cyprus will follow suit and that everything will go up in real terms overnight when the euro becomes the nation’s official currency.  New currency profiteering is certainly predicted to push property prices higher in Cyprus but it’s not the only reason to invest in property in Cyprus before 2008 it you want to beat inflation and actually profit from prices being pushed ever higher by unstoppable external factors.

On the first of January 15% VAT will be charged on all land transactions in Cyprus which is fabulous news for anyone who secures their land deal prior to this date and devastating for everyone else!  There are no two ways about it – developers buying new land after this date will be adding on their costs to the build of property and the consumer will be the one to wear this VAT hike. 

These two significant events are going to see property price inflation in Cyprus whether we like it or not and whether the market can stand it or not.  No matter where your current opinion lies – prices will rise – of course this could kill the market for the short term but we have never advocated a short term approach to investment property in Cyprus anyway!

Special Reports: Property News for Cyprus

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