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The impact of the strong Euro on the European (and Cyprus) property markets...
Since December 2007, the Euro currency has reached some record highs against the US Dollar and the Pound Sterling and inevitably the European property market, including Cyprus, has been affected. On December 19 2007, the GBP was worth almost Euro 1.40. Three months later, it has gone down to Euro 1.28. This is a real reduction of 9.4%, which means simply that property within the Euro zone countries has become 9.4% more expensive for the British buyer, all other factors being equal.

However, selling a property in Cyprus now and sending the funds back to the UK as sterling would have resulted in the opposite, you would have gained 9.4% in extra profit. The savvy investors who bought in Cyprus have another reason to be happy with their investment. Other reasons to invest in Cyprus, it is easy and all monies can be repatriated. The Euro could be overtaking the dollar as the worlds major currency and get stronger in the future.

The Cyprus market has felt the impact of weak sterling because Britons are still by far the number one buyers on the island. However, in March, the Royal Institute of Chartered Surveyors produced their 2007 European Housing Review which reported an almost universal downturn in European housing markets - except for Cyprus where is has actually accelerated. (Source of proof)

Why is this? In part, thanks to the country's adoption of the Euro at the beginning of this year, which has increased investor confidence. In addition, developers across the island, along with private vendors, have recognised that to survive in such a market, they must cut costs, reduce profits & make prices more affordable.

Did they have a choice? Not really, most realised that this was the only way the market could survive, by stabilising and weathering the economic storm, so that it can emerge stronger in the future. According to research by Chris Calogitou MBA, which compared prices in Autumn 2007 with current prices, it's easy to see that this had the desired effect. Prices have become stable and in some cases have decreased.


As a result, the Cyprus Property Market is more realistic to the foreign investor, leaving room for growth & capital appreciation in the future. Cyprus property continues to be a good investment and a real possibility for people who long for a different lifestyle to relocate. Considering the cost of living in Cyprus is lower than the UK, low personal taxation, sunshine for 360 days of the year, an improving infrastructure in transport, two new airports in build, new hospitals and standards of health care and major European union reforms, with access to all this for all European citizens as a basic right when you move countries.

The fact that English is widely spoken and understood, driving is on the same side of the road as the UK coupled with low personal taxation are just some of the reason why one should really explore the benefits of purchasing a property either as an investment or a home in Cyprus.

As a bonus it has just been announced that David Lloyd is to build a leisure village in the Larnaca area with sports for all and a 5 star hotel available in 2010. Any investment now in the Larnaca area can only be positive for investors.


For more information contact us today at info@cyprus-property.co.uk