By Gwenda Brophy
Published: June 7 2008
Copyright The Financial Times Limited 2008

Virtually year-round sunshine and a stable economy have long made Cyprus a popular choice for those buying a first or second home in the Mediterranean. Recently cited as a bright spot in the international property market, it was described in the Euro Housing Review by the UK’s Royal Institution of Chartered Surveyors’ as “a rare case of a country shrugging off the gloom”.

While the island’s climate and natural beauty make it ideal for golf, this dimension of the property market is relatively new. Spyros Tzoannos, director at private equity firm Dolphin Capital Partners, says: “Back in the 1990s Cyprus was not known as a golfing destination. Then the Tsada club opened in 1994, followed by the Secret Valley club in 1996, and major golf tour operators started to include it as an alternative to established destinations like Portugal and Spain”. Demand for properties followed, and when the Aphrodite Hills resort opened in 2002 it put Cyprus on the map for golfers.

The game now features in the island’s long-term plans. Evangelia Eliadou, a director of property developers Pafilia, says: “If you look at the Cyprus Tourism Organisation’s 10-year strategic plan you will see that the government is putting an emphasis on encouraging sustainable tourism, part of which is developing Cyprus as a golfing destination”.

“ Golf is also seen to play a role in attracting more up-market tourism, which is helping give developments a higher profile”, says Litsa Chrysostomou, marketing director at BuySell Real Estate in Cyprus. “For a country to be a true golfing destination there needs to be a variety and a certain level of courses – as well as good transport connections. This is now happening”. Both Secret Valley and Aphrodite Hills, for example, are within easy reach of Paphos International Airport, while a new highway links the Secret Valley resort with Paphos, Limassol and Troodos.

Schemes on or near courses have been extremely popular among buyers, with integrated resorts proving particularly appealing. Aphrodite Hills features a championship course designed by Cabell Robinson and a spectacular signature hole across a deep ravine. The complex features an InterContinental hotel, a tennis academy and spa, as well as a village square with shops, bars and restaurants. There is even a Byzantine-style chapel for weddings and christenings. The 650 villas with pools and apartments in small groups with communal pools, are built around the course.

Nearby, Secret Valley is being revamped by Aristo Developers, a subsidiary of Dolphin Capital. British legend Tony Jacklin has been appointed to design two new championship courses, replacing and upgrading the existing one, while New York-based architects Robert AM Stern have been commissioned to design a clubhouse.

“The idea is to create an integrated golf and residential community”, says Tzoannos. The new homes will be on plots ranging from 1,000 sq metres to 1700 sq metres, with a choice of about 40 villa styles, and the majority of the 650 plots will have panoramic views of the sea and mountains. Secret Valley will ultimately include a luxury hotel, shopping mall and beach facilities. The new properties have not yet been released, however BuySell Real Estate is currently marketing resale properties including three-bedroom, three-bathroom, detached houses on plot sizes of 417 sq metre to 834 sq metre. These are priced between €402,500 (£317,615) and €920,000 – the average property price on the island is €191,216.

“In terms of purchasers, around 70 per cent of those buying at or near a golf resort come from the UK, with Scandinavians and other Europeans making up another 15 per cent and Russians 5 per cent,” says Tzoannos. “The latter two groups are a growing market”.

Peter Veitch of estate agency network Investabroad, says that while the majority are purchased by Britons he is aware of an increasing number of Russian golfers in the clubhouse.
Surprisingly, only about a third of buyers actually play the game. Some plan to take it up when they retire while others just want to enjoy the ambiance of a resort. “It does mean the facilities over and above golf, from restaurants and bars to playgrounds for kids and tennis courts, are of vital importance,” explains Veitch.

Chrysostomou agrees: “Owners of resort properties tend to have to spend more time travelling into town, as the golf courses in Cyprus are around 20 minutes [drive] away from the nearest towns. There are also communal charges, and they might pay a higher premium for groceries because the number of basic shops on the resorts is usually limited”.

It appears to be a small price to pay however. Those who have bought early have enjoyed substantial capital appreciation. And purchasers looking for a good buy should look at the proposed golf courses, suggests Chrysostomou. “Polis and Latsi are popular, while Tersefanou village close to Larnaca will benefit due to the proposed luxury PGA golf resort planned on the edge of the village, to be completed in 2010,” she says. “Alternatively, the areas of Anarita and Mandria in Paphos are close to the airport, beaches and the existing golf courses so offer the potential for good capital growth and rental returns”.

Meanwhile, there are more developments to come. At Tsada – also close to Paphos – the old golf course is being revamped by owners Pafilia into the Minthis Hills resort. The course, originally designed by Donald Steel, has been recently enhanced by designers Mackenzie & Evert. The clubhouse will feature a restaurant, spa and health club, tennis courts and there is even talk of personal vineyards for residents as part of the package. Architect Woods Bagot is creating modern villas with elements of Cypriot vernacular buildings – traditional stone mountain village houses with internal courtyards – as well as contemporary features such as glass walls. Average plot sizes are about 1000 sq metres and each of the 600 homes will feature a view of the sea, mountains and golf course.

At Secret Valley, permission has been obtained for a third championship course. Meanwhile additional factors at work from beyond Cyprus itself look set to boost Cyprus’s golf profile further. “Demand for resort-style developments, especially ones with golf courses, is growing throughout south-eastern Europe, due in part to increasing number of retirees and second-home buyers, as well as to the overcrowding in southern France, Portugal and Spain,” says Eliadou.