DPI Worldwide - Property Investment in Cyprus

Investors in Cyprus could benefit from continuous demand for rental accommodation, according to an expert…

Property writer Mark Dale stated that since the Mediterranean island was hot and sunny for 12 months of the year, it was consistently popular with tourists.

He commented: “Since holidaymakers travel to the region during all four seasons, investors could potentially earn higher rental income than in other markets.

"An all-year-round rental season is a huge bonus, especially with more and more holidaymakers looking for winter sun. Cyprus is also easily accessible, as it is serviced by a number of budget airlines. This meant that the Island is likely to attract more people in the next few years”.

Cheap air travel is a major boost to property markets of Cyprus and the Canaries, according to experts…

Mark Bodega, Director of currency specialist HiFX commented: “Investors in the two destinations can achieve the greatest capital value premium because low-cost flights are widely available. Cyprus and the Canary Islands are established and medium-distance markets, and both be reached in about four hours.

"The ease of access to a property has a real impact on its success as a holiday home as well as its future sale value."

Established markets such as Spain were also said to have benefited from the aviation sector, as it was "well served" by low-cost carriers. This comes after a study by the Hogg Robinson Group found that the most popular routes offered by airlines were carrying more passengers than they were last year.

Residential property prices in Cyprus broke another record in November as prices rose by 21% year on year, according to the BuySell Home Price Index. This is the highest year-on-year increase recorded by the index, which began in 2004...

The BuySell Home Price Index rose for an eleventh consecutive month to 141.69, recording a significant monthly increase of 2.5%, compared with a month-on-month increase of 3.7% in October. In the year to date, prices were up by 21.5%, compared with a more modest increase of 5.9% in 2006. The increase brought the Average Home Price in Cyprus to CYP 110,390 (EUR 188,613).

John Reilly, managing director of Buy Abroad, pointed to a "real upsurge" in British investment interest in the island.” People looking to buy inland can pick up some definite cheaper properties, and obviously the possibility of VAT change on the land sales next year should help to push up the housing demand," he told Worldofproperty.co.uk.

Dani Maxton, managing director at Morpheus Investments, agreed. "Cyprus is now stronger than ever and more and more investors are looking to purchase property in this tried and tested island in the eastern Mediterranean."

Property law specialist George Coucounis shared this view. He told the Cyprus Mail newspaper: "Prices and demand will continue to rise for some time, with more and more foreigners buying property on the island. In addition, land is limited, which fuels price rises."