Pretty Positive News for Property in Cyprus

The economic situation in Cyprus is positive, the adoption of the Euro was hassle free, interest in the property market in Cyprus remains strong and Easyjet are going ahead with their plans to start flight routes from the UK to Paphos in March - so all in all it’s pretty positive news for property in Cyprus especially if you already have investment real estate on the island.

Whether the situation will remain so strong throughout 2008 has yet to be seen as the real estate market in Cyprus is very strongly dependent on foreign investment, but for those with investment assets already in their portfolio, it’s expected that the rental rates will increase and interest particularly in holiday lets will remain intense throughout the year.

The World Travel and Tourism Council were predicting a year on year increase in arrivals in Cyprus of up to 4.5% in 2008 even before confirmation was received that Easyjet are opening up routes from the UK to Paphos.  This welcome addition of a seasoned cheap flight operator to the skies and airports of Cyprus bodes as well for the tourism industry as it does for the property market.

This is because its an incredibly well known fact that additional airlines means greater accessibility and that cheap airlines means more affordable accessibility and combined, this always generates strong consumer interest in property overseas in locations as close to cheap flight airports as possible.  Because Easyjet are focusing in on Paphos International Airport as opposed to Larnaca, this means we should see a further boost in sales on the Western shores of Cyprus in 2008.

In terms of the market conditions investors, second home buyers, retirees and expatriates will be buying in to...it’s likely financing will be harder to come by either internationally or locally in Cyprus.  The Cypriot banks lent record amounts for home purchase last year and will be well aware of the international credit crunch starting to bite around the world.  If you have financing in place or are a cash buyer you will be entering a market where 2007 tax receipts were so strong that the Cypriot government has predicted around a 1.5% fiscal surplus going in to 2008.  The number of international businesses establishing themselves and their interests in Cyprus increased in 2007 year on year, and now that Cyprus has joined the Euro and can take part in discussions about interest rate adjustments and can benefit from having the stability and scope of the currency supporting trade and business on the island, everything is looking positive for Cyprus.

If you’re seeking a market with strong tourism rental potential, where there is also exceptionally strong interest in resale real estate and where the property market is built on strong and solid fundamentals, you could do far, far worse than considering buying investment property in Cyprus.

Special Reports: Property News for Cyprus

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