News-Details
Cyprus has been identified as one of the few bright spots cited in theRICS European Housing Review 2008, which looks at the performance of European housing markets in 2007 and analyses trends across the continent. This annual report highlighted Cyprus as “a rare case of a country shrugging off the gloom” and prices in Cyprus “actually seemed to accelerate during the year.”
The BuySell Home Price Index backs this report up, with a recorded 19.2% increase in prices in 2007, after a 6.6% increase in 2006.
Litsa Chrysostomou, Marketing Manager at the largest real estate organisation in Cyprus, BuySell Real Estate, comments, “The property market in Cyprus is established, predictable and much less volatile than other newer and emerging markets. There are excellent internal and international transport links to the UK, Europe and other destinations; a very low crime rate; a high standard of living balanced by a relatively low cost of living; significant tax benefits (including low tax for pensioners) and excellent medical and educational facilities. All of these factors contribute to the island’s continued appeal and property market growth.”
While the entire market on the island is on the rise, BuySell Real Estate expects particular areas of Cyprus to be hot in 2008.
Owners could benefit from both capital gain and increasing rental returns in the areas of Anarita and the Mandria in Paphos, which are close to Paphos Airport, great beaches and golf courses. Polis and Latsi are also popular and a new multiple-lane road from Paphos to Polis makes Paphos and the airport more accessible. Coral Bay in Peyia is also a hot area to buy in as there are plans for a new marina.
Limassol’s eastern beach is ideal for those looking for a coastal retreat, with numerous apartments within walking distance to the sea, restaurants, pubs, clubs and shops in great demand as holiday lets. Following the signing of the construction agreement on 25th January 2008, the future €170 million marinainLimassol will offer a range of services including dining, shopping and conference space along with residential property. All properties in Limassol will be less than 10-minutes drive from the new marina so will benefit from this new facility and increased visitor numbers.
Larnaca continues to be a great place to buy Tersefanou village , close to Larnaca, is another buying ‘hot spot’ thanks to the proposed luxury PGA golf resort planned on the edge of the village. Numerous apartment complexes located here, with swimming pools, communal gardens and gyms, are ideal for golf fans who cannot afford property inside the resort itself.
Particularly popular with British retirees are the villages around the Famagusta district, which frequently benefit from infrastructure and facility upgrades. A number of Cypriots own second homes here because of the sandy beaches and crystal blue water. Most of the villages in the Famagusta district are a good buy, being situated only ten minutes drive from the best beaches on the island and having banks, tavernas, cafes, bars, hairdressers and beauticians.
The capital and largest city in Cyprus, Nicosia, is attracting increasing numbers of international companies due to low company taxation rates, excellent infrastructure and modern telecommunications. Most embassies on the island are also located here, adding to the international flavour of the city. A strong demand for office space and apartments to rent has kept property prices rising steadily in Nicosia. Aglantzia, close to the new university campus of Cyprus, is already developed to a degree, but by 2010, the number of students is expected to rise from 5000 to 8000, bringing high demand for apartments to rent as well as for shops and services.
