Real Estate & Economic News in Cyprus from Propertyshowrooms.com

Sales of Cyprus real estate fall again

Tue, 15 May 2012 00:00:00 GMT

Sales of real estate in Cyprus have steadily fallen for the past two years, with the dip forecast to adversely affect state revenues.

Land Registry figures show a total of 461 property purchase contracts were submitted during April 2012, down 15 per cent on April 2011's figure of 542, Cyprus Property News reports.

Sales on the island have been falling steadily over the past 22 months - with the exception of January 2011 - and Andreas Christodoulou, Land Registry director, said the dip will cause state revenues to drop by between 25 and 30 per cent.

Overseas buyers make up roughly a quarter of the Cyprus property market, as the April data shows 119 of the 461 contracts deposited were in favour of foreign purchasers. Domestic demand is hampered by broader economic uncertainty, the news source noted.

An end to the slump is unlikely to occur in the near future and spokesman for Cyprus’ Royal Institution of Chartered Surveyors Pavlos Loizou was recently quoted by the Cyprus Mail as saying falling property and rental prices will make it difficult to reverse the decline.

Cyprus property market 'struggling in current economy'

Mon, 7 May 2012 00:00:00 GMT

Board member of the Royal Institution for Chartered Surveyors (Rics) Cyprus Pavlos Loizou has said the economic situation in the country is impacting the real estate sector.

Speaking to the Cyprus Mail, he stated: "Property and rental prices continue to drop, mainly due to the unfavourable economic climate, the negative forecasts for the broader economy, the lack of sponsorship and the low performances [of real estate assets]."

Mr Loizou explained Cypriot commercial property yields need to improve and rents have to stabilise if investors are to be encouraged back to the country and he stressed until this happens, the market will remain in a "slump".

Meanwhile, Cyprus Property News revealed the rate of construction in the nation slowed in February, with 9.4 per cent fewer building permits issued this year than in the same month in 2011.

The figures from the Cyprus Statistical Service also showed the total value of construction projects in January and February fell to €261.2 million (£212.2 million), down from the €351.7 million recorded in the same period a year earlier.

Will Cyprus property prices fall further?

Fri, 10 Feb 2012 00:00:00 GMT

Property prices in Cyprus are expected to slide further over the course of 2012, a new survey has predicted.

An online poll carried out by Cyprus Property News revealed 70 per cent of respondents anticipate the value of real estate in the country will fall this year, with just 11 per cent predicting a rise.

The remaining 19 per cent of those who were questioned believe Cyprus property prices will remain unchanged.

This comes despite a host of measures introduced by the Cypriot government in a bid to boost the island's real estate market, the publication pointed out.

Among the changes that have recently been put in place are a six-month suspension of property transfer fees on the first sale of a home and reductions in value-added tax for first-time buyers who are permanent residents in Cyprus.

Last month, the news provider reported on a presentation by lead consultant with Leaf Research Pavlos Loizou, who also predicted a further decline in real estate values in Cyprus, although he did state his belief that the market is approaching its lowest point.

Cyprus property prices slide

Tue, 3 Jan 2012 00:00:00 GMT

The value of property in Cyprus fell by 4.9 per cent during the first half of 2011, new figures show.

Cyprus Property News cited data compiled by the European Central Bank, which revealed the country experienced the third largest decline on the continent in terms of real estate prices.

Only Ireland and Spain saw their housing markets hit harder, registering falls of 11.8 per cent and 5.5 per cent respectively.

Polys Kourousides, a property valuer in Cyprus, told the newspaper that a correction in prices on the island is necessary, following a period of sharp increases between 2002 and the third quarter of 2008.

During this period, capital values jumped by an average of 14.8 per cent per year, the news provider noted.

Earlier this month, the publication reported that the Cypriot government has agreed to make changes to the property transfer fee regulations on the island.

This will see some transactions incurring no additional charges, while others will receive a reduction of up to 50 per cent.

Real estate sales in Cyprus fall

Fri, 5 Aug 2011 00:00:00 GMT

Real estate sales in Cyprus have fallen for the 13th consecutive month, the latest figures from the country's Land Registry show.

Cyprus Property News published the data, which revealed a drop of 19.7 per cent in July, compared with the same month in 2010.

Among the areas to see the biggest slide in transactions were Paphos, Nicosia and Limassol.

The publication also highlighted that fewer foreign buyers are entering the Cyprus property market, with sales among this demographic declining by 26.9 per cent year-on-year.

It appears that overseas investors have been targeting Larnaca, which registered a 56.3 per cent rise in such property purchases.

However, interest in other parts of the country - most notably Famagusta and Paphos - seems to have dropped considerably among foreigners.

Last month, the news provider reported that the number of building permits being issued in Cyprus fell by 16.2 per cent between April 2011 and the same month the previous year, indicating that the construction industry has slowed down.

Asian and Russian buyers boosting Cypriot property market

Thu, 16 Jun 2011 00:00:00 GMT

The Cypriot property market is beginning the long road to recovery, aided by interest from Russian and Asian buyers.

Overseas Property Professional reports that many local real estate agents have seen year-on-year increases in sales to foreign buyers in the past few months.

Yiannis Misirlis, of Imperio Properties, told the news provider that the island has seen a number of different nationalities take an interest.

He noted: "There has been a noticeable percentage increase in business from Russia and China by our system that makes overseas property buyers eligible for a residential visa.

"The Russians have been aware of the rule for several years now and like to take advantage of it. The Chinese are coming in ever-greater numbers now."

According to the expert, Chinese buyers prefer apartments near the coastline and tend to put down a 50 per cent deposit with the rest paid via a traditional mortgage.

Low Cypriot property sales could encourage price falls

Fri, 27 May 2011 00:00:00 GMT

A decline in the level of property sales in Cyprus could see potential buyers given more opportunity to pick up a bargain home.

The latest official statistics reveal that there has been a decline in transactions of over 15 per cent in the fist three months of the year, compared to 2010 figures.

As a result, some vendors may be forced to lower their asking prices if they are going to have a realistic chance of attracting buyers back, A Place in the Sun reports.

Indeed, a fall in costs could also act as the spark needed to tempt a number of investors back to look at property in Cyprus.

However, in spite of this drop in sales, Cyprus remains extremely popular with Brits travelling abroad. There was a 43 per cent year-on-year rise in the number of British holidaymakers to Cyprus in April, figures from Cypriot government's statistical service show.

And although Russians are currently the most active foreign buyers in Cyprus, Brits still make up the largest proportion of overseas property owners in the country.

Cypriot sales increase in 2010

Mon, 17 Jan 2011 00:00:00 GMT

Sales in the Cypriot property market rose by five per cent over the course of 2010 compared to the previous year, new figures from the Department of Lands and Surveys show.

The total number of transactions carried out increased to 8,598, mainly boosted by a 14 per cent jump in sales in Nicosia and a ten per cent increase in the city of Limassol.

However, speaking to Bloomberg, Andreas Christophorides, managing director of Christophorides and Associates, said that a further recovery during the first six months of 2011 was "unlikely".

"The market may recover in the second half of 2011 but the process will be tentative," he added.

Last year, A Place in the Sun reported that a total of 1,593 homes in Cyprus were sold to overseas nationals during the first ten months of 2010.

Although this figure was higher than the previous year, sales to foreigners remained significantly lower than the 6,118 properties sold during the same period in 2008, the news provider said.

Sales fall in Cypriot property market

Mon, 13 Dec 2010 00:00:00 GMT

The Cypriot property market is likely to experience "more of the same" as it heads into 2011, it has been claimed.

Figures released by the Land Registry on Thursday show that property sales fell for the fifth consecutive month in November compared to last year, Cyprus Property News reports.

The statistics show that the number of contracts of sale deposited at Land Registries throughout the month was 741 compared to 714 during the previous month and 792 in November 2009.

The annual decline in November reached six per cent following to the one per cent decline experienced during October.

Nationally, sales so far this year have reached 7,901, an increase of nearly seven per cent on last year's total of 7,407.

According to property valuer Polys Kourousides, stagnation will continue and the year will close with a slight increase mostly due to last year's low basis.

"Things in 2011 will be the same as those in 2010. Nicosia and Limassol, which were kept high in 2010, might be affected more," he told the news provider.

Sales to overseas property buyers in Cyprus remain low

Wed, 6 Oct 2010 00:00:00 GMT

The number of overseas real estate buyers in Cyprus continues to fall, despite renewed attempts by agents to attract foreigners to the market.

According to the latest figures from the Department of Lands and Surveys, there were 127 transactions completed by overseas purchasers in August compared to 167 in July.

Industry experts claim that the decline is the result of the global economic crisis and the island's title deeds scandal.

Over the course of the year, statistics from the Estate Agents Association of Cyprus show that there has been a slight increase in the total sales to foreigners of 2.7 per cent.

However, those looking to find a home in Nicosia will be boosted by news that the region posted the largest increase in sales to overseas buyers with transaction levels were up 55 per cent.

"The negative economic condition in the United Kingdom, Cyprus’ main market, does not allow the purchase of properties by the British, while the drop in the property prices in the UK contributes negatively too," Solomon Kourouklides, chairman of the organisation, said.

Property sales rising in Cyprus

Fri, 5 Feb 2010 00:00:00 GMT

The property market in Cyprus received a much-needed boost as house sales rose year-on-year in January.

Investors may be interested in figures released by the Cyprus Department of Lands and Surveys, which show that sales increased by 24 per cent last month.

Popular areas included the country's capital city Nicosia, port city Limassol and coastal city Paphos.

Chairman of the Pancyprian Association of Real Estate Agents, Solomon Kourouklides, told StockWatch: "The latest increase is attributable to the opportunities in the market.

"Many Cypriot individuals and investors buy properties from non-Cypriots or Cypriots that cannot pay off their loans."

However, Mr Kourouklides warned that these opportunities will not last forever and attention should be drawn to the fact that sales fell by 84 per cent in 2009 compared with 2007.

Some developers have been offering discounts of up to 30 per cent on properties in an attempt to lure investors back to the market.

The Bank of Cyprus has agreed to a loan to construct a new marina in Limassol.

Cyprus 'the star performer'

Fri, 12 Jun 2009 00:00:00 GMT

Cyprus has been described as a lone beacon of economic growth in the eurozone.

The country looks on course to be the sole member among the 16 countries in the bloc to record positive economic growth in 2009, RTE reports.

Such a view was noted by the news provider after the country's state statistical service revealed that annual growth to the end of the first quarter of 2009 was 1.2 per cent, albeit less than the previously predicted 1.4 per cent.

Although the economy slowed in the first quarter of the year, the report said: "Satisfactory growth rates of both construction and the wider services sector limited the extent of this deceleration."

Those investing in property may wish to buy in Cyprus because of its stronger economic situation.

Last month the Cypriot finance minister Charilaos Stavrakis said the country's prospects economically were better than those of its neighbours, noting that the economy was still growing and the government had not needed to bail out Cypriot banks.

Cyprus property transactions down

Fri, 5 Jun 2009 00:00:00 GMT

The number of Cypriot property transactions has continued falling, official figures have revealed.

Data from the country's Land Registry showed that the year-on-year decline in sales was 53.2 per cent in May, with the figure for the year to date now standing at 60.7 per cent.

Paphos and Famagusta, which have high numbers of overseas buyers, fell by 66 per cent and 71 per cent respectively.

Such statistics suggest that the country's property market is still feeling the effects of the world economic downturn, while some UK buyers may be held back by the value of the pound against the euro.

Those who are looking to buy property in Cyprus may find that they are presented with a substantially larger choice of real estate in which to invest than might normally be the case.

One reason buyers may wish to invest in the country is that the domestic economy has been described as doing much better than those of other European nations.

Last month finance minister Charilaos Stavrakis noted that the country is the only one in the eurozone with a growing economy, while unemployment and public debt are comparatively low.

Alpha Bank boosts share of Cyprus deposits and loans

Mon, 3 Nov 2008 00:00:00 GMT

Alpha Bank was the best performer among Cyprus banks after successfully boosting its share of deposits and loans during September 2008 according to...

Stavrakis ready to soften blow in Cyprus from credit crisis

Tue, 9 Sep 2008 00:00:00 GMT

Finance Minister Charilaos Stavrakis said he may introduce new measures if the turmoil in global capital markets continues, but at the same time he as...

Barclays Wealth launches operations from Cyprus

Tue, 9 Sep 2008 00:00:00 GMT

Barclays Wealth Intermediaries, a division of Barclays Wealth, has launched its new proposition to the Cyprus intermediary and corporate market at...

Cyprus set to attract British visitors

Fri, 8 Aug 2008 00:00:00 GMT

A budget airline has confirmed that it is begin operating a new route between the UK and Cyprus next year.

Monarch will start running its twice-weekly service between Larnaca and Birmingham Airport in March 2009.

The move further enhances the ease of access to Cyprus, which could the Mediterranean island a popular choice for holidaymakers next summer.

Furthermore, the improved connectivity could enhance the appeal of Cyprus among foreign property investors, particularly lifestyle buyers in the West Midlands.

Liz Savage, managing director of Monarch, commented: "I am sure that the people of the Midlands will warmly welcome the introduction of this service."

Meanwhile, the aviation sector has received a boost as both Ryanair and easyJet have revealed a year-on-year increase in passenger numbers.

The former saw custom go up by 19 per cent in July 2008, while easyJet saw a 20 per cent rise over the same period.

Cyprus attracts holiday home buyers

Mon, 4 Aug 2008 00:00:00 GMT

Cyprus is proving to be very popular with holiday home buyers from overseas, according to a media report.

Travel and Tourism News stated that the Mediterranean island is increasingly being seen as a year-round holiday destination.

As a result, more and more people are choosing to visit at various times of the year, including during the winter.

This has led to growing interest in the Cypriot property market among lifestyle buyers, as many want their own permanent base in the country.

"Many choose to spend extended holidays in their properties, visiting several times a year," said Travel and Tourism News.

The media outlet added that the adoption of the euro in Cyprus earlier this year has been a positive development for visitors and investors.

This reinforces the conclusions of France 24, which recently said the island's entry into the single currency has helped to sustain its property boom.

House prices going up in Cyprus

Thu, 31 Jul 2008 00:00:00 GMT

Cyprus currently offers some of the best growth potential in Europe, a media outlet has revealed.

According to France24, the Mediterranean island was enjoying a property boom prior to its accession to the euro in January 2008.

The news provider stated that this has continued in the wake of the currency changeover, despite the worsening decline in other parts of Europe.

Commenting on current market conditions, France24 said: "There is a ray of property sunlight, though, and it's directed over Cyprus right now."

The online portal added that the adoption of the single currency has helped Cyprus maintain earlier growth rates.

Estimates suggest that property values in Cyprus should go up by at least three per cent this year.

This echoes recent comments in the Telegraph, which stated that only Cyprus has avoided the end of the European property boom.

Briton hails move to Cyprus

Thu, 24 Jul 2008 00:00:00 GMT

A retired Briton has told a newspaper why he has decided to leave the country and relocate to Cyprus.

Speaking to the Financial Times, 68-year-old Andy Leck said the Mediterranean island offers a number of advantages such as year-round sunshine.

However, he told the publication that monetary concerns have also played a part in influencing his decision to move to another country.

For example, he said Cyprus taxes just five per cent of a person's pension income, compared with 40 per cent in the UK.

This means that he can enjoy a higher amount of disposable income if he settles overseas.

Commenting on the disparity, Mr Leck said: "I save £40,000 a year by being in Cyprus rather than Britain."

This comes soon after Jet-to-Let magazine revealed that almost 40 per cent of prospective British buyers intend to buy a residence in Cyprus within the next year.

Cyprus 'to see further economic growth'

Thu, 10 Jul 2008 00:00:00 GMT

Cyprus has been tipped to experience further economic growth this year, according to a media outlet.

The Financial Mirror reports that the Economic Intelligence Unit (EIU) is expecting its gross domestic product (GDP) to go up by 3.7 per cent.

However, it believes external financial issues such as the credit crunch, the weak British economy and the strong euro could slow down growth in 2009.

Indeed, the EIU has predicted that next year, the Mediterranean island's GDP will go up by 3.1 per cent.

However, Cyprus's tourism industry has been given a boost from the launch of a new service by British Airways.

The UK-based carrier has just started operating a direct service between London's Gatwick Airport and Paphos.

This should help encourage more holidaymakers and second home buyers to visit the country.

According to official government figures, the holiday industry generated £1.4 billion for the Cypriot economy in 2007.

Cyprus offers lower living costs

Tue, 1 Jul 2008 00:00:00 GMT

An expatriate from the UK has revealed that he has enjoyed a lower cost of living since moving to Cyprus.

Tony Blackwell, a retired electrician from Manchester, relocated to the Mediterranean island six years ago with his wife.

Speaking to the Associated Press, he said the country offers a number of attractions, such as relatively low prices.

Indeed, he stated that living costs in Cyprus are between 15 and 20 per cent cheaper than those in the UK.

This is because residents do not have to pay as much in tax, which means that while both countries are being affected by rising food and fuel prices, people on the island have not been as badly affected.

However, Mr Blackwell admitted that he is still looking for ways to reduce his overall expenditure.

He commented: "You have to be very astute at what you do, but it's frustrating that there's nothing you can do to change that."

This comes after Cyprus was recommended to retirees by ShelterOffshore.com on the strength of its financial attractions, such as various tax breaks.

Cyprus weathers economic storm

Fri, 18 Apr 2008 00:00:00 GMT

Cyprus does not seem to have been negatively affected by the worldwide financial crisis, a newspaper has stated.

According to the Independent, house prices in the Mediterranean island went up by 20 per cent last year.

This is considerably more than in many other European countries and a sign that the credit crunch is not hitting its housing market to the same extent.

The newspaper said this development represents a "convincing case" for the island's investment credentials.

Commenting on its suitability for foreign property buyers, the Independent remarked: "It looks as though the island may buck the current trend for falling house prices."

The publication added that Cyprus also offers a number of lifestyle attractions, such as quiet villages, thriving resorts and affordable properties.

According to the Home Move website, property values in Cyprus are likely to go up by about eight per cent this year.

Cyprus Government Predicts Strong Economic Growth

Wed, 30 Jan 2008 00:00:00 GMT

The government in Cyprus is forecasting strong economic growth for the year ahead, according to local media.

Finance minister Michalis Sarris told the Financial Mirror that he was expecting the economy to expand by about four per cent in 2008.

Speaking to the newspaper, he said the revised estimates followed a higher than expected rate of economic growth recorded last year.

He commented: "'I believe the performance of 2007 was truly impressive and the predictions we made for 2008 were based on smoother growth rates."

Mr Sarris added that the majority of people on the island were now using euros, ahead of the day that the pound finally goes out of circulation.

He said the single European currency was now being used in approximately 95 per cent of transactions.

The Mediterranean island became a member of the euro at the beginning of 2008, four years after it joined the European Union.

Earlier this month, the Telegraph predicted that the currency changeover would boost Cyprus's appeal to foreign property buyers, due to factors such as favourable interest rates and rising house prices.

Cyprus reassures euro doubters

Fri, 7 Dec 2007 00:00:00 GMT

Cyprus' central bank is issuing material designed to reassure those with doubts over its forthcoming currency change.

The organisation is working with the ministry of finance in order to promote the positive benefits of being a member of the euro, such as low interest rates and a more resilient economy.

According to the Financial Mirror, the promotional drive has been going for some time but is now being intensified.

This is because there is only a matter of weeks before the island becomes a member of the single European currency.

Cyprus will adopt the euro on January 1st 2008, which means that bodies such as commercial banks are already receiving notes and coins.

The promotional campaign should help to raise general awareness of how people should manage their finances during the transition period.

This comes nearly four years after Cyprus first became a member of the European Union.

Cyprus benefiting from increased tourism

Fri, 16 Nov 2007 00:00:00 GMT

The economy in Cyprus is benefiting from an increase in the number of foreign arrivals on the island, according to new statistics.

Official figures showed that the country saw a 6.4 per cent increase in visitor numbers during the 12 months to September this year.

The data, which was cited by the Financial Mirror, suggests that owners of rental accommodation in Cyprus could be benefiting from the surge in tourism, since demand is higher than in 2006.

This could potentially serve to enhance the appeal of the island among prospective buyers of overseas property.

Figures also showed some of the other benefits created by the growth in the tourist market, such as an increase the amount of money spent by visitors.

The overall amount of travel expenditure was found to have risen by 9.3 per cent to £188 million.

This comes shortly after Gulf Weekly stated that the strong tourist trade in Cyprus was one of the main factors behind its popularity with overseas property investors.

Cyprus 'suitable for foreign investors'

Tue, 6 Nov 2007 00:00:00 GMT

Foreign investors could find an ideal marketplace in Cyprus, according to a government official.

Antonis Michaelides, the country's minister of commerce, industry and tourism, said it offered numerous benefits to people from overseas, such as being well located and economically prosperous.

He added that the island had developed into an international business hub between Europe, Africa and Asia, especially since it became a member of the European Union.

Cyprus was said to be doing well in attracting foreign direct investments, with many companies choosing to do business there.

Mr Michaelides went on to highlight other attractive qualities of the country, such as the recent streamlining of the tax regime and efforts to cut bureaucracy.

He commented: "Advantages include a stable socio-economic environment, state-of-the-art infrastructure, a highly qualified labour force and a business environment."

These factors could also be beneficial to investors in Cyprus' property market, as the strength of the economy and access to modern facilities would be important considerations.

The island's appeal as an overseas investment hotspot could also enhance as a result of its forthcoming entry into the single European currency.

Northern Cyprus economy 'booming'

Fri, 10 Aug 2007 00:00:00 GMT

The local economy in northern Cyprus is undergoing something of a boom of late, creating positive conditions for investment and property development, it has been claimed.

A strong economy signals continued growth and economic activity in the future, while also pointing toward property appreciation ahead. This will come as welcome news to investors looking for lucrative opportunities in the Cypriot market.

Reports from Obelisk International state that northern Cyprus has established itself as an emerging property hotspot, attracting investment activity and a growing level of international interest.

Much of this interest stems from the European Union and a boost in tourism, which is also serving to bring more money into the economy.

Figures state that the northern Cyprus economy grew by more than ten per cent last year alone, with economic growth averaging between ten and 11 per cent from 2003 to 2007.

Meanwhile HiFX speculates that the entrance of Cyprus and Malta to the EU will boost overseas property purchases in the near future.

Cyprus property market boosted by euro

Thu, 19 Jul 2007 00:00:00 GMT

The Cyprus property market is expected to experience a boom following an announcement by the EU that it will adopt the euro in 2008.

Currency specialist HiFX said that the country's economy was already on the up and the news would prompt increased interest from British investors.

Malta will join Cyprus and enter the European currency at the start of 2008 after being accepted into the community in 2004.

Both countries, according to HiFX, have demonstrated the "maturity" of their economies.

HiFX marketing director Mark Bodega said: "We predict the property market on both islands to continue to grow due thanks to a number of reasons.

"British purchasers like the legal system in Cyprus as it is easy to understand-being based on the English one."

He added that the Cypriot government believes in keeping its country beautiful and there were stringent building and developing regulations that included green areas.

Saga commented that retired British investors in particular chose Cyprus, along with traditional locations Spain, France and Portugal, because cost of living was low and the climate was appealing.

Rising Property Values

Thu, 25 May 2006 00:00:00 GMT

One of the biggest change in the Cyprus property market is being driven by its entry into the EU, with the Cypriot pound set to be swallowed up by the euro in early 2008.

The Cyprus construction industry is capable of building only 4,000 homes a year and because high prices in Spain are driving many buyers to look to this island

Instead, it means that demand is still outstripping supply...

Pensions In Cyprus

Mon, 3 Apr 2006 00:00:00 GMT

You will not be liable to UK tax on your UK pension if you live in a country which has a double taxation agreement with the UK. Under most such agreements pensions are only taxed in the country where you are resident. Where that is the case and you make a claim for relief, the Inland Revenue will authorise payment of your pension without deduction of tax. If there is no relief under ...

House prices rise sharply in Cyprus

Thu, 26 Jan 2006 00:00:00 GMT

The Cypriot economy has shown further signs of rapid growth and the housing market continues to lead the way.

Cyprus is expecting to join the EU in 2007/8, but prices have been steadily rising for some time. Looking at the obvious example of Spain, which joined the EU in 1986, experts predict that house prices will soar in the coming years and many property investors have already made significant investments on the island in anticipation of its accession.

Data from the Statistical Service CYSTAT shows that house prices are rising faster than any other consumer goods, with significant increases in the costs of water, electricity and gas all reflecting the current growth in the economy.

The Cyprus Financial Mirror reports that taxation has also led to higher prices, however, with alcoholic beverages shooting up by 9.4 per cent in 2005 in comparison to only 1.1 per cent in the previous year.

The increase in excise duties on "sin goods" was introduced specifically to prepare for EU accession and property investors are advised to make a move now in anticipation of similar increases in the next two years.

As detailed in the recent Passenger Survey, foreign visitors have also boosted the Cypriot economy following a 3.9 per cent increase in revenue from tourism against the figures from 2004.

Encouragingly, the Index of Economic Freedom by the Heritage Foundation has also pointed out that Cyprus has one of the freest economies in the world. This has particular significance for property investment in the country.

"The countries with the most economic freedom also have higher rates of long-term economic growth and are more prosperous than are those with less economic freedom," said the report.

Not only does this policy mean that Cyprus is well-positioned to flourish for many years to come, but property investors will also enjoy favourable property rights.

Policy on property rights is one of the key factors considered when compiling the Index of Economic Freedom and investors have been delighted by the country's continued commitment to fairness and independence in this field.

Experts agree that real estate prices are set for considerable gains following strong progress in 2005. An increase of 1.9 per cent in property prices during the third quarter of 2005 followed a 2.2 per cent rise in the second quarter.

The relative modesty of these figures has led to a huge influx of foreign property investors turning to Cyprus in preference to traditional hotspots such as Spain. With a general slowing of the property boom in Spain, EU accession and the promise of a well-managed economy makes Cyprus a genuine alternative this year.

Source: Assetz News