South Cyprus Property Market

Cyprus has always been a popular destination for holiday makers and those seeking a quieter pace of life. Investment in Cyprus remains a good prospect with solid returns on investment of up to 20% per annum. In 2009 there has been a slow down in UK holiday home buyers BUT a steep increase in permanent residence and Russian and scandinavian buyer's, keeping the prime property locations a solid investment.

Much of the prime land in Paphos is already built on or has strict build density regulations of a little as 6%! yes that one huge piece of land can only be 6% built on making apartment in many area's ie CORAL BAY not possible! These area's are seeing large villa's in excess of 1 million been purchased and that's it.

Buying a well priced apartment from a trusted and established local developer as near to the Paphos harbour and tourist area, will mean you own a piece of Cyprus that's in an area that will rise in value for decades to come. This area also offer's the highest rental yeild if your thinking of renting to holiday makers/workers.

Cyprus has long been a popular holiday destination for British tourists, possibly because settling in is not as much of a culture shock as on other Mediterranean islands. English is widely spoken on this former British colony. For property investors, the land registry system is similar to back home. Familiarities such as these, set in the context of over 300 days of sunshine a year and 648 km of coastline, are clear enticements for the British to continue to flock to the island for both business and pleasure. Main property hotspots are in and around Paphos, Larnaca, Limassol and the ancient city of Nicosia.

EU membership since 2004 means Cyprus is offers a strong property market, reaping the rewards of a stable economy. The Republic is set prospering further from the adoption of the Euro in January 2008.

Cyprus enjoys a standard of living that is higher than many other European Union member-states while economic performance compares very well to that of most other EU countries.

The banking sector is the major financier for both investors and developers alike. Cyprus property is expected to benefit from the uncertainty and pessimistic expectations in the English property market, since many investors prefer to transfer their capital to more secure property markets with better future potential. British investors have very strong buying power in Cyprus and they can use gearing from their investments in England to buy significantly more in Cyprus.

Interest rates in Cyprus are approximately 4%and investors are buying up now as, by liquidating their investments, they incur large cash returns which are significantly greater than lending costs, due to the great performance of capital gains in many prime Cyprus locations.

Inflation is noted at 2.3 % and unemployment is at 3.8% - both rates are encouragingly positive.

Cyprus has double taxation treaties with 26 countries, including the U.S.A, and there are no exchange restrictions on current international transactions. Non-residents and foreign investors may freely repatriate proceeds from their investments in Cyprus.

Offshore status allows many foreign companies (located in Cyprus but conducting business abroad only) to benefit from many highly beneficial tax and duty-free concessions.