Buying Property in Cyprus Remains a Hot Prospect

Property investors and expatriates alike who may be concerned that newer, fresher Mediterranean and Black Sea destinations are going to put a dampener on Cyprus’ older, more established appeal can relax.

The Cypriot financial and real estate outlook remains pretty solid and in other words, buying property in Cyprus remains a hot prospect!

The climate for investment into and relocation to favourite European destinations like Cyprus, Spain, Italy and France is on an upturn it seems.  In fact, it is estimated that the number of Britons alone choosing to relocate to balmier shores such as these is up about 10% year on year and this trend certainly shows no signs of abating. 

It appears that after years of living in often cold and wet conditions in the UK, many Britons are taking advantage of what the European Union has to offer by way of both easy relocation and the right to buy and own freehold property in Europe.

The Cyprus property market has been and remains a solid choice for such expatriates and investors from Briton and elsewhere.  It is even a destination favoured by Citigroup - the financial giant recently reiterated its stand on buy ratings for the Bank of Cyprus and Hellenic Bank.

Its buy target for the Bank of Cyprus is currently at EUR 17 per share, which translates to an upswing potential of about 42% over its current EUR 11.94.  Hellenic Bank’s prices are lower but its possible upswing gains are even higher.

Citigroup’s bullish outlook on Cypriot banks is being driven by the country’s ongoing property boom.  The country’s leading banks have experienced a 50 to 60 per cent mortgage growth rate and there doesn’t appear to be a slow down coming in the immediate future which has actually caused some concerns among the banking community!

So, what does all this largely positive data mean for you if you are thinking of buying property in Cyprus?

Nothing but good things – except in regard to property prices!

With Cyprus remaining a hot destination for buyers and with its financial backing for mortgages quite high, the current prices that compare well with other resort areas in Spain for example might not stay that way for too much longer. 

Still, if you’re looking to buy real estate in Cyprus it is still quite feasible to purchase apartments and freestanding homes for investment prices comparable to other areas of Europe such as Spain, France and Italy at the moment.

The appeal of Cyprus is undeniable.  With more than 2 million visitors a year and having just experienced its busiest summer in terms of tourism traffic in recent history, this stunningly beautiful Mediterranean island is now one of Europe’s most popular tourist destinations.  Its balmy weather and incredible beaches call to visitors from all over the globe and it’s no wonder so many who visit decide to return for good. 

In Cyprus it’s not just expatriates fuelling the property market, real estate investors also find strong potential at the moment – the lure of year-round sun, sea and sand and the appeal of the many picturesque towns and villages within Cyprus translates well for rental fees and rental demand year-round.  And even beyond the beaches visitors come to Cyprus for water sports, for history, culture, cuisine and a quieter pace of life and if an investor knows which market to tap in to they can do very well in the form of rental yields annually.

While Cyprus is not the only destination on the Mediterranean by any means, it remains a strong choice for long term property investment interest.  With major financial institutions pleased with its performance, the outlook is bright and sunny for Cyprus!

In fact, many new developments are under way or on the drawing board so it’s even still possible to get in on some great off plan pricing for resort spots all across the island.  If you’ve been wondering about the prospects for Cyprus in the face of other up-and-coming attractions, it seems there is little need to fret.

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