The total area of projects that registered building permits in January increased by 11.6% to 278.9 thousand sq. meters compared to 249.8 thousand sq. meters in the corresponding month of 2008, when they had decreased by 5.3% compared to 2007. The value of building permits authorized rose for the eighth straight month, rising by 6.9% over January 2008 to EUR 234.1 mln, suggesting that developers are still making money and these building permits is for the construction of 1,585 dwelling units which is also up from 1,229 in January 2008, according to financialmirror.com reports.

The area of the projects in Famagusta registered an increase of 41.6% to 29.3 thousand square meters from 20.7 thousand square meters. In Paphos, 30.8% to 53.7 thousand sq. meters from 41 thousand sq. meters in January 2008, while in the commercial port of Limassol it is 6%, in Larnaca of 2.9% and in Nicosia of 3.8%.

In related news, the Bank of Cyprus is offering attractively priced loans of up to EUR 1.5 billion earmarked for housing, business and the hotel/construction industries. Vassos Shiarly, The Bank of Cyprus Group General Manager Domestic Banking has stated that € 800 million are geared to soft loans for housing and businesses wishing to own their own premises.

Overseas investors wanting to buy property abroad should have Famagusta top in their list, particularly Protaras, Paralimni, Cape Greko and, perhaps the most infamous, Ayia Napa, According to experts at The Overseas Guides Company.

Famagusta is capital of the Famagusta district in the east coast of Cyprus. It is located in a bay between Capes Greco and Eloea, east of Nicosia and possesses the deepest harbor in the island. Famagusta is one of the finest examples of mediaeval architecture in the eastern Mediterranean. The new town (also known as Maras or Varosha) lies just to the south of the walled old-city of Famagusta.

As a seaport, Famagusta is a center for the export of agricultural products and livestock; other major economic activities include cotton spinning, the distillation of brandy, and fishing. The resort is packed with tourists not only during summer, but all through the year as its friendly pace of life through the colder months attracts tourists.

This is likely to be welcomed by owners of rental accommodation in the coastal town, as the season in which they can potentially have tenants in Famagusta is growing year-on-year.

According to the Cyprus mail, Ayia Napa is another coastal village on the southeast of the island, has less than 1000 citizens but during the summer months it sees the arrival of approximately 10,000 tourists and has built up a reputation as a wild party-town. The town is also likely to attract more interest from retirees who wanted to spend their post-working life overseas.

Kim Brown of The Overseas Guides Company commented: “This extended season, coupled with prices far lower than areas such as Paphos, and the warm weather, local food and improved way of life makes Famagusta in Cyprus a great consideration for anyone looking to purchase property abroad.”

Famagusta has traditionally been one of the more popular cities for foreign investors and had 95% of Cyprus’s tourism before the 1974 Turkish invasion. Property investment firm International Property Group (IPG) has stated that the region would see immediate price rises of 10% upon reunification. IPG director Gerraint Thomas has commented that if the talks between Greek and Turkish Cypriot leaders are successful, the area will see excellent capital appreciation.

Recently some economist newspapers reported that more than any other city in Cyprus, property prices in Famagusta have increased substantially. The market does not succumb to political pressures and there are still high demands for resale and off-plan property. Property Experts expect prices to continue to increase as it is considered as stable and mature property market.

Foreign investors looking for a holiday homes to retire are recommended buying in Famagusta to take advantage of the low prices. The price in Famagusta is cheap compared with the southern part of the island and pricier areas of the Mediterranean such as Spain and Portugal.

This news comes after a recent study by Jet-to-Let magazine has revealed that nearly 40 per cent of prospective British buyers plan to invest on the Mediterranean island in the next year.