According to the seventh issue of the RICS (Cyprus) Property Price Index, average residential prices for houses and apartments fell by 1.0% and 2.7% respectively. Average rental values for apartments fell by 3.1%, retail units by 4.1%, warehouses by 5.4%, and offices by 2.0%. In contrast, rents for houses rose by 1.3%. Figures from the Land Registries across Cyprus reveal that the number of properties sold fell for the 16th consecutive month in October; the rate of the fall appears to be slowing. The area hit hardest by the decline is Larnaca, where sales slumped 27%. In Paphos they are down 22% and in Famagusta they have fallen 15%. Limassol seems to be weathering the crisis well with sales falling by just 0.2% over the year which has been attributed to an influx of Russian buyers.

Property experts believe the country’s favorable lifestyle and climate will continue to prove tempting to emigrating Brits. A large number of potential homeowners in the country are hoping to take advantage of the low prices which are currently on offer, as a result of the market crash.

Property valuer Polys Kourousides believes that the things will change in the next few months. He said that Limassol recorded an increase in August due to the purchase of properties by non-Cypriots, Russians mostly. Parliament’s approval of the draft law on the suspension/reduction in Property Transfer Fees will make a positive contribution to the market and it was actually one of the proposals made by the Valuers’ Association three years ago.

Meanwhile, The Vice Chairman and spokesman for the Real Estate Agents’ Association, Solomon Kourouklides, said that the biggest problem is the lack of liquidity and that the measures cannot change the market by themselves; further incentives are needed.

TheMoveChannel.com is the important independent website for international property in over 100 countries with more than 400,000 listings around the world. Spain was the most popular investment destination for British overseas property investors. France is in second place and the USA bagged number three spot. These were followed by Portugal and Italy, in fourth and fifth places respectively.

‘A Place in the sun’ has reported that the number of foreign buyers active in the Cypriot housing market last year increased compared to 2009. Altogether, 2,030 homes were bought by foreign buyers during 2010, up 15 per cent compared to the previous year. However, the volume of properties in Cyprus sold to overseas buyers at the height of the market in 2007 was 11,281.

Nicosia has seen the greatest improvement in property sales with a 46 per cent increase which was followed by Famagusta, where sales increased 16.5 per cent, Paphos, up 16.3 per cent and Limassol with 12 per cent.

Maria McLaren, spokesperson for the Pafilia Property Commented: “Cyprus attracts everybody from the holiday home crowd to the retirees because it has the infrastructure.”

She added that it is geared up for anybody who wants to go to Cyprus and live there very happily. The developers have dropped their property prices by between ten and 20 per cent on the island due to oversupply.

According to Bulgarian daily Dnevnik, the tourism sector in Cyprus was marking a sound recovery following a dip during the global economic downturn. Foreign tourist numbers showed a strong increase of 15 per cent in Match 2010 over the same month of 2009, or more than 103 000 to last year’s 90 000. Local authorities hoped that the trend would continue all over 2010. Tourism arrivals in Cyprus saw their best monthly increase in years in March, as arrivals of tourists rose by 14.8% over the year compared with March 2009. The Statistical Service reported that an increase of 5.7% was recorded in tourist arrivals from the United Kingdom.

Property expert Derek Watkins said that increasing tourism in Cyprus and a reputation for attracting repeat visitors, a buy-to-let investment in Cyprus is still a great bet than that of emerging markets such as Bulgaria because Cyprus is a natural market, according to cyprus4investors.

In related news, Dani Maxton, of Morpheus Investments suggested that Cyprus looks set to become an even more popular tourist destination and introduction of low fare flights will open up the island to more potential second-home buyers.

According to the Sunday Mail reports, Don and Christine Stark, who both work in the aviation industry, bought their home after a friend recommended they take a holiday on the popular island. They now preferred quieter holidays and wanted to invest in property that would give them a good return.

Mr. Stark said: “It’s a beautiful place – the scenery is stunning and the biggest plus point has to be the year-round sunshine. Our friend had bought property in Cyprus and had retired out there.

The couple found their dream home at the Paradise Gardens II development, with two bedrooms, an open-plan living space, a large garden for sunbathing and barbeques which boasts a communal pool and is a 15-minute walk from the harbor. The property is suitable to be rented out when the couple and their families are not staying there.

Meanwhile, another couple from UK, Robert and Adele Philliben told the Sunday Mail that they bought two one-bedroom apartments at the Arcadia Gardens development in Ayia Napa.

Robert told the newspaper: “We settled in Cyprus because it’s so popular with British people. The similarities of the legal system meant that buying wasn’t difficult and we thought we’d never struggle to rent out our property so that clinched it.”

Monarch has started running its twice-weekly service between Larnaca and Birmingham Airport from March 2009. The move further enhances the ease of access to Cyprus, which could the Mediterranean island a popular choice for holidaymakers in 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.”

According to Travel and Tourism News, 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 market among lifestyle buyers and rental investors. “Many choose to spend extended holidays in their properties, visiting several times a year,” said Travel and Tourism News.

In related news, Thomas cook said that the island offers “guaranteed sunshine”, therefore allowing investors to earn money from rent all year round. The country is still an attractive option for many British holidaymakers, as it is “as popular as ever”.

Marilyn and Hamish Lowdon from Aberdeenshire has stated that All legal documents and paperwork are in English, most solicitors are bilingual both well versed in Turkish and English, and the legal system is based on UK. Given the right circumstances, foreign buyers can be the owner of a Cyprus property in just a day! The couple has bought their property near Paphos – which features a large balcony and shared communal area with a pool – for £172,000 in 2005, According to Sunday mail reports.

According to the publication, IT consultant James Allen, 31, is just one of the many Brits who have chosen to purchase property in the country. He paid for a deposit on a flat in Paphos in 2006. Mr. Allen now believes similar properties in the area are selling for around 30 per cent above what he paid.

He said that initially he was looking at a flat to buy and rent out in Scotland but he couldn’t find anything that would give him decent returns so he decided to look for properties abroad and selected Cyprus. Although his flat will not be finished until 2010, Mr. Allen has stayed in a completed part of the development.

However, in Northern Cyprus Non-nationals require a purchase permit from the government in order to buy property and such permits may take 4-12 months to come through.

Meanwhile, Cyprus has topped the list by Jet-to-Let magazine to determine the countries of most interest to property investors this year. Cyprus finished first for the second consecutive year, closely followed by France and Spain in second and third respectively. The government has launched first-time buyer scheme in Cyprus and a total of 200 million euros was set aside for the initiative. Cypriot finance minister Charilaos Stavrakis has approved the first 30 loans, which aim to help first time-buyers onto the country’s property ladder.

Paul Collins, property editor at BuyAssociation.co.uk, said Cyprus does offer “enough of a change to attract people”. He added that many Brits have chosen to purchase property in the country and Cyprus property is showing a year-on-year growth of more than 18 per cent. The country’s offers a number of financial attractions to older expatriates from the UK and its favorable tax regime of just five per cent on a person’s pension income is flagged up as one of its main benefits. Furthermore, people are not liable to pay inheritance tax upon their death.

Paul Collins added that there are lots of similarities with Britain, especially in its legal system. As a result, property buyers have not been required to learn a lot of new rules and regulations when purchasing a home. In addition, 90 per cent of Cypriot residents speak English, left-hand driving and British television is available via satellite are the other features attracts the Brits.

Mr. Collins commented: “These are things that buyers look for because particularly if they’re retiring – they don’t want to be somewhere that’s completely different.”

The retirees in Cyprus have smaller outgoings as a result of the country’s favorable tax regime and the cost of living in Cyprus is up to 20 per cent cheaper than it is in the UK, the Associated Press reports.

As some property buyers worried about the implications of not holding legal ownership to their properties, two questions were placed before the House of Lords in November detailing the concerns of those buyers. The House of Lords has issued a written answer to the debacle.

Lord Malloch-Brown answering on behalf of government said that British High Commission is in discussions with the Cyprus government over the matter, with the average title deeds on the island taking between ten and 15 years, with 100 home owners still waiting, of which 30,000 are foreigners including Brits. He also confirmed that they have received assurances that the Cyprus government intended to introduce a bill to address this issue.

He added that this issue has the potential to affect a large number of British citizens who have purchased property in Cyprus and they have a close watch on the issue of title deeds for expats currently living in the Cyprus. To a second question asked by Lord Jones of Cheltenham, Lord Malloch-Brown said property seekers must always use an independent lawyer and ensure they obtain title deeds.

Nigel Howarth, a resident and owner of advice website cyprus-property-buyers.com, told the Business Life magazine that British purchasers can contact the British High Commission for a list of independent lawyers in Cyprus.

The British Foreign & Commonwealth Office (FCO) website on its travel advice on Cyprus page in the General – Purchasing Property section has given top advice on purchasing property in Cyprus.

The vast majority of properties are purchased off-plan from developers, buyers may wait years to receive their title deeds, Cyprus-property-buyers.com reports. The transfer of deeds is also often stalled by developers failing to stick to earlier plans or not getting building permits. Overseas investors should always ensure that they obtain title deeds. Mr Howarth of Cyprus-property-buyers.com commented: “If you want to sell your property and you don’t have the deeds, you have to get approval from the developer, and they can charge you whatever they like.”

The FCO website also states that UK consumers looking to buy property in Cyprus should seek legal advice from an independent professional before doing so.

The security of the property purchase and ownership rights that are intended to be obtained depends on the successful navigation of the necessary paperwork.

The website also added that the process of achieving legal redress in Cyprus can be very protracted compared to the UK and they can contact the British High Commission for a list of independent lawyers in Cyprus. This means that buyers can identify reputable lawyers, making transactions easier in the face of foreign property laws and language barriers.
Meanwhile, Business Life magazine has reported that buyers must tread with caution when purchasing in Cyprus and be sceptical of claims from developers.

According to Robert and Adele Philliben, they prefer quieter holidays so they decided to buy property in Paphos and another reason is that they have heard that the country’s housing market has affordable properties that are appreciating in value. They said that their social life has improved dramatically since they arrived on the island.

Speaking to the Sunday Mail, they said they had been tempted to buy a property in Cyprus ever since they visited Ayia Napa earlier. Now the couple has bought two one-bedroom apartments at the Arcadia Gardens development, one of which has its own roof terrace for outdoor dining and sunbathing. Construction on Arcadia Gardens is expected to be completed by August 2010.All properties will be fully furnished and residents will have access to five large outdoor swimming pools along with sports and leisure facilities.

Mr. Robert said that the country offered a number of appealing features, such as its beaches, landscape, friendly people and good food. They are able to take part in far more outdoor activities than they could in the UK.

This comes soon after the news that Cyprus was praised by Shelter Offshore for offering affordable and quality healthcare to foreign expatriates.