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Thursday, 30 October 2008 00:00 |
The third largest island in the Mediterranean, Cyprus is also one of its most popular tourist destinations, attracting millions of visitors each year.
Despite the financial turmoil that is currently shaking international property market around the world, the country is in excellent shape, and property markets remain buoyant.
Cruising through the credit crunch
It is not just Cyprus' sunny disposition and incredibly low crime rate that makes it so attractive to holidaymakers and property investors alike.
In areas such as Limassol, capital appreciation of 40 per cent over the last five years has definitely helped to raise the profile of the beautiful island among foreign buyers.
Meanwhile, the latest European Housing Review from the Royal Institution of Chartered Surveyors (Rics) indicates that Cyprus enjoyed one of the highest growth rates in Europe last year - an enviable 15 per cent.
And with analysts now suggesting sustainable house price growth of up to ten per cent per annum, there can be no doubt that Cyprus has done well to avoid the effects of the credit crunch.
Developer Jonathan Salsbury told property portal The Move Channel that real estate in Cyprus isn't the cheapest in the world by any stretch, but reassured potential investors that the extra money goes a long way.
"Of course there are developments and countries where prices will be lower, but what we are witnessing here is a conscious choice of quality build, proven track record, lifestyle and belief in sustainable growth over price," he elaborated.
Time is right for development
Although the authorities remain apprehensive about over-development - and have taken precautions to limit build density - Cyprus has also seen a great leap in infrastructure development over the last several years; noticeably since it joined the European Union in May 2004.
Despite any caps in place, the country now has the highest house-building rate (compared to its population) in all of the EU, according to the Rics report.
Akis Kelepeshis, president of the Association of Cyprus Travel Agents, declared: "We have already spent a lot of time and money and we are beginning to see increasing numbers [of foreign visitors]."
In fact, travel website lastminute.com estimates that bookings for breaks to the Mediterranean island were up 32 per cent in June compared to the same month last year.
Strong tourism industry
With all this going for it, it is hardly surprising that Cyprus is visited by more than 2.4 million international holidaymakers every year. The World Travel and Tourism Council expects the country's holiday industry to grow at a healthy annual rate of four per cent between 2008 and 2017.
New flights are also popping up between cities across the Cypriote districts of Paphos, Nicosia, Larnaca and Limassol, and international hubs in Europe and the rest of the world.
Most recently, British carrier Monarch Airlines announced a new twice-weekly route between Birmingham Airport and Larnaca - something that will help to open up Cyprus to a wider number of tourists and subsequently boost holiday rental yields.
A former British colony, Cyprus has and always will be a popular choice for tourists from the UK and the rest of the world.
Peter Treherne, managing director of Sheffield-based Independence Properties believes that the Cypriot property market still represents a strong arena even in these difficult times.
"Despite current market conditions, Cyprus continues to generate high levels of interest amongst investors," he explained. "It's close ties to the UK are certainly important in maintaining this interest. With visitor numbers increasing, the rental market in Cyprus should continue to yield good returns for the foreseeable future."
Because of this steady demand for holiday accommodation, a sustainable property market and impressive growth - at a time when many countries are entering recession - Cyprus provides a number of exciting opportunities for property buyers looking to tap into the booming Mediterranean tourism market. |
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