Being a hot tourist destination, after its partition in 1974, the island of Cyprus soon attracted second home purchasers. This, followed by the announcement that the country is likely to joint the European Union, doubled the volume of purchasers, and Cyprus saw tremendous increase in property prices. Cyrpus is the most popular destinations for the Irish and UK investors, as it is an island where they truly feel at home.
Why invest in Cyprus real estate market?
The warm climate, countryside, beautiful beaches, sedate lifestyle and great tax benefits make Cyprus an ideal choice for investment. We find out that proximity to European mainland and the vast numbers of budget carriers, attracting investors and tourists from Europe and UK with regular budget direct flights, make the island more easily accessible. Hence, Cyprus witnesses huge demand for its holiday rentals and second homes.
The low cost of living and competitive prices when compared to other Mediterranean destinations, make Cyprus an ideal investment destination. There has been a typical growth rate of 20% per annum in selected locations.
Cyprus has gained European Union inclusion since May 2004, which implies that the island has EU financial assistance and other economic benefits. The International Monetary Fund and European Commission have endorsed the Cyprus economy as a stable one for investment.
The government has established a Strategic Plan for Tourism 2010, and is upgrading resorts and facilities inline with 21st century tourism trends. This boosts an already thriving tourism industry on the island.
Low tax regulation, with pension income being taxed at only 5%, makes Cyprus an ideal choice for settlement. Another major advantage of buying a Cyprus investment property is that owners get a gains allowance of C£ 10,000 per person each year during the initial five years of ownership. Unlike other countries, more rebates are offered on improvements done to the property, inflation and other associated costs.
Changes in Cyprus real estate market
Cyprus real estate market has undergone vast changes during the past few years, with a change witnessed in trends, financing options and building styles. Eversince the Cyprus property market caught the attention of British investors’; several British expatriates are seeing the Republic of Cyprus, not just as an ideal country for residing, but also as a wise investment. With several British expats now residing in Cyprus, the popularity of the country has not only grown as a retirement destinations, but also as a business and commerce base, due to constant growth following its ascension to European Union in May 2004.
Although towns such as Peyia and Paphos in the West, and Protaras and Oroklini in the East, have been much favored by British investors, the present day investors are looking for destinations away from the regular track. In fact, potential investors are in search of villas and apartments with a more ‘traditional’ outlook, rather than the earlier choice of apartments with ‘Little Britain’ atmosphere.
Most analysts are of the opinion that Cyprus, with its high-quality residence in the Mediterranean, will see a considerable growth in property values during the next few years. The planned construction of another fourteen golf courses, several new marinas, expansion of Larnaca and Paphos airport, expansion of the motorway network of the island, and other leisure amenities, continue to make Cyprus an excellent property investment proposition.