With its beautiful Mediterranean coastline, lovely weather and natural holidaymaking draws that are almost endless, buying property in Cyprus has become a very “in” thing to do. As more holidaymakers are putting Cyprus on their must-visit lists, the prices for Cypriot real estate are growing, but so are the reasons for investing in the Cyprus property market.
In this article we’ll explore the Cypriot property market and factors that are coming in to play to make it even more attractive. Make no mistake – buying in Cyprus is not necessarily cheap, but the returns can make it very worthwhile. The reality is, both prices and tourism are on the rise on both sides of the island. With its picturesque Mediterranean beaches, balmy weather and rather unique historic sights, this country has a distinct draw for buyers, holidaymakers, retirees and even younger expats looking for a change of pace. These things come together to make buying in Cyprus rather attractive at present and they make Cyprus property more appealing whichever side of the Green Line you prefer.
Whilst recent pricing growth in southern Cyprus is making buying here a little costly for investors on a budget, the news is working to draw the attention of others and what’s more, prices for property in Northern Cyprus remain affordable. For those looking for fast returns and letting potential, the Cyprus market is indeed attractive. September 2007 saw a record rise of about 12.3% in residential prices in southern Cyprus according to the Financial Mirror, and similar increases are being witness in the north as well.
The upward trend for prices is continuing on both sides of the Green Line in fact. October figures showed a 17.5% rise over the same month last year, brining the average price of buying a home in southern Cyprus up to EUR 184,000…naturally the average price in TRNC is far lower.
The attraction of the Cyprus property market is no doubt being bolstered by its strong and growing holidaymaking industry. This country’s tourism industry is anticipated to grow by 4% per annum through 2017 according to the World Travel & Tourism Council, although this growth figure is certainly conservative for the Northern third of the island. The British Foreign & Commonwealth Office anticipates an estimated 1.5 million Brits visit Cyprus’ shores each year.
The already strong tourism industry in Cyprus is expected to get a big boost sometime next year when easyJet begins offering low-cost flights to Cyprus. The announcement means that another affordable option for getting from the UK to Cyprus will soon come online. This news is good not only for holidaymakers, but also investors seeking to cater to them with holiday rentals.
At present, buying property in Cyprus is a very appealing undertaking. Even big name financial companies like Citigroup are standing up and taking notice of the growth. Whilst it is not likely the massive growth will continue indefinitely, buyers here can look forward to steady growth over the short and medium term and enjoy even longer periods of predicted growth in the undervalued market in North Cyprus.
It is important to note that buying in Cyprus can have some pitfalls though. Buyers are advised to seek counsel and make sure property is well inspected and titles show up as clear.
As long as buyers do not expect miracle growth to continue forever and they take the time to research purchases, the Cyprus property market is likely to deliver some very good results for investors.
