Cyprus 2009 and beyond

What's been happening a year on from Euro introduction?....

It’s been a year since Cyprus joined the Euro, and that year has been characterised by some of the greatest turbulence the financial markets can remember.  The turmoil has affected all the major economies around the globe, the European Union included, and Cyprus has not been immune to that process.  But there are signs that it may weather the storm better than many of its neighbours, and plans are in hand to ensure that Cyprus – and the Cypriot property market – emerge in good shape.

In April 2008, a new city centre crossing point was opened to link the Greek and Turkish halves of Nicosia, the island’s capital, as part of a package of UN-backed confidence-building measures.  Four months later, historic talks began under the auspices of the UN between the Greek and Turkish Cypriot leaders, aimed at reunifying the island and its economy.  The talks are on-going.

In the meantime, the Greek Cypriot government is pushing ahead with its plans to upgrade tourism facilities in the southern part of the island.  The centrepiece of this project is a plan to build four marinas at leading resorts, the most ambitious involving the construction of an artificial island off Limassol which will be “more impressive than what has been constructed by Dubai,” according to Antonis Paschalides, Minister of Commerce.  It will have a 1,000 yacht capacity. The other marinas will be at Coral Bay near Paphos, at Ayia Napa and Larnaca, and the plans also include restaurants, shops and residential properties.

While the first marina is scheduled for completion in 2011, the Cyprus property market remains reasonably robust.  Although growth – unsurprisingly – slowed in 2008, the market is broadly-based and therefore well-placed to cope with the global economic crisis.  There is a healthy domestic property market and, while Western Europeans may be thinking twice about overseas property investment, an influx of buyers from other countries such as Kazakhstan and Russia means that the Cypriot property market has not been hit as hard as some others.  The government is also encouraging sellers to translate property information into Arabic, to appeal to cash-rich Middle Eastern investors, with some success.

For British buyers, investment property in Cyprus continues to offer promising opportunities.  Alistair Darling’s revision to Air Passenger Duty means that the island remains easily accessible at a reasonable cost.  And last year, a survey conducted by the Homebuyer and Property Investor Show, quoted in the Sunday Times, named Cyprus as ‘the best place in the world for retirement’ based on its property costs, tax regime, ease of gaining residency, healthcare, climate and culture.  For anyone looking to invest in property overseas, Cyprus remains a dynamic market with strong foundations and great potential.

Posted 12^th January 2009 by Louise Reynolds - Property Venture^®

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