A Guide to Cyprus Investment Property
With its inimitable Mediterranean seaside atmosphere and its famously welcoming population, Cyprus is a land of leisure, pleasure and opportunity for holidaymakers, expatriates and investors alike. The country’s weather, booming property market and steadily increasing stream of tourists make it a European hotspot many are continuing to take notice of.
With its bustling tourism industry, strong real estate market, governmental stability and legendary history, Cyprus is a favourite playground for many Europeans and Britons. At Nubricks.com we suggest the following ten factors as strong influences affecting investor interest in the Cyprus investment property market currently : -
1) Governmental Stability Makes Cyprus Very Attractive to Investors
To say Cyprus hasn’t had its share of turmoil over its incredibly long history would be inaccurate. It’s an island that has been fought over for centuries, but despite the current divide between the Turkish north and the Greek south, the island’s republic form of government has enjoyed decades of relative peace and calm. The Republic of Cyprus, about which this report is written, is actively involved in a number of international organisations including the United Nations, the European Union and the Council of Europe. In light of the government and the nation’s peace and stability, the property market in Cyprus is very strong and even international banking giants such as Citigroup are citing Cyprus as a promising area for investment. This is very positive for investors who seek stable markets for their investment portfolio expansion.
2) Full EU Membership Gives Cyprus an Edge for Holidaymakers and Property Investors Alike
Cyprus has enjoyed full EU membership since 2004. The acceptance of Cyprus by the EU bodes very well for investors who desire locations with easy access, easy entry for EU citizens and favourable relations with the whole of Europe. Because of Cyprus’ standing and its open and welcoming attitude toward holidaymakers, investors and expatriates, the country is very promising for buyers looking for buy-to-let opportunities, second homes and resale potential. The EU membership is also beneficial for the country’s overall economy, stability and future outlook.
3) Stable and Strengthening Economy Helps Cyprus Inspire Investor Confidence
The Cypriot economy is enjoying a period comfortable and stable growth. The GDP annual growth rate of 3.8% isn’t the fastest in the world, but it well out-paces the European average inflation rate. Tourism, financial services, textiles and chemicals drive the country’s economy with the tourism industry alone accounting for a sizeable chunk of the GDP, estimated at nearly 10% by the World Travel & Tourism Council. The stability and growth of the economy bode well for property investors in Cyprus and make targeting buying real estate to cater to the tourism industry a sound option that many investors lean toward currently.
4) Transition to the Euro Will Make European Sourced Property Investment in Cyprus Even Easier
Cyprus will join the Euro Zone on January the first 2008 and change its currency to reflect that found in many other western European countries. The transition to the Euro will make buying property in Cyprus and exchanging money even easier for investors from most European countries. The present exchange rate between the British pound and the Cypriot pound is very close, which speaks well of the island country’s economy, but joining the Euro will make transactional transparency greater, it will level out any pricing discrepancies and it will bring more confidence into the market altogether.
5) Straightforward Property Buying Process in Cyprus Makes Investment Attractive
Buying property in Cyprus is generally considered a very straightforward, easy process. Since many of the inner workings of property exchanges follow English standards, the process is typically quite easy for Britons and other Europeans to understand. Whilst it is recommended that legal counsel be sought to navigate the system, buyers of real estate in Cyprus do find investing simplistic. This is a big selling point for investors who do not want to deal with complicated and difficult buying procedures. Cyprus desires and welcomes foreign investment and its process and banking opportunities make it feasible for many to buy in.
6) Active and Growing Cypriot Property Market is Inspiring for Investors
The Cypriot property market is considered a very hot prospect at the moment. With new off-plan developments under way across the country, the market is considered strong and very attractive. With buy-in prices that are still thought of as very low compared to other Mediterranean destinations, the attractiveness of this market is evident. The rental yield alone ranges from 6% to 9%, and starting prices in Cyprus can be well under GBP 100,000 for complex based apartments for example. The potential for growth coupled with the relatively affordable entry price range makes Cyprus appealing for investors looking for second homes, resale potential and buy-to-let opportunities.
7) Booming Tourism Industry is a Bonus for Cyprus Property Investors
Cypriot tourism is a very hot prospect for visitors from all over the world. With a large expatriate community and some of the most legendary sites found anywhere in the world, this Mediterranean island draws more than 1.5 million Britons a year alone! The World Travel & Tourism Council estimates the tourism industry will generate more than USD 5,955.7 million in 2007 and tourism activity is anticipated to grow at a rate of 4% per annum between 2008 and 2017. The unique draws, beautiful climate and stunning seaside charms of Cyprus combine to make this location ideal for investors interested in a number of different strategies.
8) Popularity of Cyprus with Holidaymakers and Expats Provides Investors with Opportunities
Cyprus is located roughly 70 km south of Turkey and 300 km north of Egypt. It is the third largest island in the Mediterranean and features a landscape that ranges from seaside to mountainous. It is famous for its warm Mediterranean climate that delights tourists and investors and its unique geographical features, such as unusual rock outcroppings and caves. You can ski in the Troodos mountains in the winter and you can enjoy the Cypriot beaches for almost year round sunshine. You have excellent shopping opportunities in the likes of Nicosia and Larnaca, you can enjoy any number of leisure pursuits in Cyprus and the island has such a favourable tax regime particularly for international retirees that it is so popular with holidaymakers and expats alike. For a property investor all this speaks of massive opportunity in terms of investment focus and profitable exit strategy potential.
9) Legendary Historical Sights and Unique Charms Maintain Cyprus’ Evergreen Appeal
Cyprus is home to some of the world’s most ancient sites - its capital city of Nicosia has served in that capacity since the 12th century, but the island’s roots go much further back into the past. Holidaymakers, expatriates and investors delight in visiting the fabled birthplace of the goddess Aphrodite; other major attractions beyond the beautiful weather and beaches include the Byzantine Museum, the Royal Tombs, Limassol Castle and a host of museums, ancient ruins, gardens and other sites. The actual history and incredible legends combine to make Cyprus an evergreen, timeless favourite for holidaymakers and this is a very welcomed piece of information for investors who desire maximum buy-to-let potential.
10) Large Expatriate Community, Lower Cost of Living Make Cyprus a Hot Destination for Investors, Expats, Retirees and Tourists
The climate, attractions, low cost of living, favourable tax regime and laid back lifestyle Cyprus offers continues to draw in record numbers of expatriates in addition to the throngs of holidaymakers that come to the island annually. A strong contingency of British citizens call the island home, which makes it very appealing for other visitors. Those who come to Cyprus will find English is readily spoken by the majority of its native residents, you drive on the left in Cyprus, can buy every major British product in the supermarket and that the familiarity of the setting combined with the unique, and slightly exotic Cypriot flavour is more than welcoming. The cost of living in Cyprus is typically described as about 25% lower than in other major European destinations and overall, the atmosphere and the pricing involved in Cyprus makes it a very attractive destination for investors interested in a variety of strategies.
With its fabled ruins, beautiful weather and incredible history, Cyprus is an investment hotspot that isn’t showing signs of slowing down. New construction and existing properties are keeping the market booming. As tourism continues to grow and Cyprus joins the Euro, the island will continue to offer a great deal of potential for buyers.
