Budget airlines will boost Cyprus tourism and property markets

Panos Englezos, Chairman of the Cyprus Tourism Organisation (CTO), has announced he will increase efforts to court budget airlines to include the island as a low-price destination.

This will have a dramatic effect on the tourists industry in the country, and a follow on effect on the property market both for overseas buyers and buy-to-let investors.

As has been shown in other countries - most notably Spain - cheap and easy access is key to developing a strong overseas property market.

Alongside attracting budget air routes, the CTO is also calling for an increase to its current budget to increase overseas advertising for the island.

According to Englezos, the current push has already attracted a “significant increase of arrivals from Greece, Russia and Scandanavia.”

The CTO chairman said that Cyprus receives an estimated annual £1.3billion from tourism, which makes up around 15% of the island’s GDP.

Posted by Cyprus4Properties

Labels: Cyprus Property News 2007

Now is the best time to invest in Cyprus

There are many variables to take into consideration when making a property investment decision – particularly with regard to off-plan investments. Such variables include the market, the developer, construction timeframe, tangible product and of course finance. The finance element to an investment can be broken down into several key areas including that of currency. One currency in particular that’s building pace this year is the Euro.

With several key countries focused on adopting the Euro, property investors must fully appreciate what it means to take on the currency. Cyprus is one such market on the verge of switching to the Euro from its traditional currency – the Cypriot Pound. The move to the Eurozone comes on January 1, 2008 for Cyprus and with it, changes to the economy.But what does this mean to Cyprus and those of us looking to invest in the Cypriot property market?

Plenty. Simply put, investing before the adoption allows your investment to flourish, as property prices will almost certainly increase after the currency switch. Membership of the Eurozone means a lot to Cyprus.

It will help shield the island against economic turbulence and significant interest increases.One of the most important reasons for Euro adoption is price stability. Price stability is the main objective of the European Central Bank’s monetary policy. Furthermore, since the Euro market is highly liquid, this will result in increased efficiency of the country’s financial sector and the better allocation of financial resources.

The Euro will strengthen macroeconomic stability in Cyprus, ensuring low inflation and low interest rates currently enjoyed by Eurozone members. The single currency brings stable prices for citizens and more opportunities for businesses. Moreover, being part of the single currency will further promote trade opportunities in the global economy and attract a large amount of foreign investment.

Cyprus’ interest rates have already fallen considerably. The long-term interest rates declined by some 330 basis points from about 7.5 per cent in December 2001 to just 4.25 per cent in December 2006. Furthermore, over the same period mortgage interest rates fell 160 basis points from around eight per cent down to 6.5 per cent. This brings very practical benefits, allowing both domestic and foreign investors to borrow money cheaply thus fuelling property purchases and spurring demand.

As a Eurozone member, Cyprus will have a currency with a global position comparable to the US dollar. The role of the Euro in international trade, the global bond market and as an official reserve currency has increased substantially and continues to grow in importance. The attractiveness of the Euro as a world currency means that tourists can increasingly travel all over the world with Euros in their pockets while businesses are increasingly able to trade in Euros beyond the borders of the Eurozone.

Cyprus’ property market has enjoyed strong, consistent growth in recent years with more of the same to come and with the milestone of the Eurozone just around the corner, now is a good time to invest in Cyprus.

Rise in interest in Cyprus property investment

Interest in property investments in Cyprus has increased significantly in recent times, according to an expert from the Property Secrets group.

Simon Tweddle, head of research at the independent analysts and commentators, has noted how property purchases among external investors has been particularly strong over the last year.Properties have increased in value in Cyprus by between 20 and 25 per cent, with the country perceived as desirable due to its cheap air access, predominantly English speaking population and low taxes.Asked whether a property boom were likely to occur in Cyprus in the near future, ahead of a 15 per cent VAT being placed upon land in the country sold after January 2008, Mr Tweddle said "that kind of boom has already taken place".

Mr Tweddle also noted how: "Quite a few UK [property] companies are starting to get a bigger interest in Cyprus – they're marketing Cyprus as an investment destination."With Cyprus set to join the Euro following EU approval later this week, he also speculated that such a situation would offer more "security" to the property market and "probably increase the short-term prices rises".

Posted by Cyprus4Properties

Labels: Cyprus Property news 2007

Sunday, May 13, 2007

Expats turn to Cyprus for properties

Property investors are now looking beyond the usual hotspots in Europe and are turning to Cyprus, an expert has said.According to Les Calvert, director of Property Abroad, investment in Cyprus is booming partly because expatriates are coming to the country rather than Spain.

He added that Cyprus attracts many buyers as it enjoys constant sunshine, offers a similar expatriate community to that of Spain and is increasingly accessible through budget airlines."People are looking further afield now but with the same sort of ex-pat community that Spain used to offer," he remarked."And Cyprus is the sunshine isle: 360 days of sunshine a year.

So for the last 12 to 18 months, we've had a surge on Cyprus, with all kinds of different properties." He also pointed out that property prices are "really moving forward" at the moment and the expected VAT change on land sales next year is likely to continue pushing up housing demand.

John Reilly, managing director of Buy Abroad, recently said that on the east side of the island in particular, the introduction of budget airliners has resulted in large capital growth rental returns.