According to Propertywire, the main issue for Developers is the scarcity of water in the area and they are hoping that a deal can be agreed over the cost of the licenses and that concerns about scarcity of water can be overcome. The licenses could be granted and are expected to be mostly in and around Limassol and Paphos. Licenses for Tersefanou in Larnaca and another for the Ayia Napa municipality have also been submitted. The Council of Ministers would scrutinize the applications in mid February.

The developers expect the water supply for the developments and irrigation for the golf courses from desalination plants that are run on electricity supplied by renewable energy. They also requested for the new desalination plants to gratify the extra need in the future.

According to the 7Days news website, plans for new golf resorts will encourage foreign property buyers and golfers to visit the island. The portal stated that Cyprus property values are much cheaper, despite offering facilities of the same high standard of more established golfing destinations such as Portugal.

The website commented: “Cypriot government and key developers in Cyprus have recognized that there is a big future for golf on the island,”.

This follows a report by the Times which said that Cyprus is considered as a perfect destination for golf fans as it has a year round good climate and Golf properties offer benefits such as a green space, capital growth and good rental potential and they have experienced “tremendous growth” in recent years.

Overseas property professional has reported that Med Group, a consortium of Cypriot developers is expecting to receive the go ahead for a €300 million golf resort project at Tersefanou within the next few months and is scheduled for completion in 2010.

Aside from golfing facilities, The golf development will include a five star hotel, luxurious club house with a number of restaurants, bars, a library, children’s play area bars, a library and banquet hall. The resort itself is planned to have health spa Spa, fitness center, equestrian center, football academy, swimming pool, tennis courts and much more. The Med Group has signed an exclusive contract with the Professional Golfers Association (PGA), which will manage the golfing facilities and develop a PGA academy on the site.

The golf development is a substantial boost to Larnaca’s infrastructure as the other three courses in Cyprus are located in the Paphos and Limassol areas. Several new developments have sprung up around Larnaca and the area of the golf course once the news about Tersefanou golf course has been released. This has also had an effect on other villages in the locality, such as Pavolia, Kiti, Mazatos, which are all seeing an increase in temporary lodgings to accommodate the expected influx of golfers and holidaymakers to Cyprus. Property prices in the region are expected to increase and are projected to undergo similar rises to those in the Paphos region.

Cypriot property market has attracted international interest due to its robust economy. Much of this new impetus seems to be focused on Larnaca, where the Cypriot government is aiming to attract affluent golf lovers by creating new golf developments, resorts, new five star hotels, retail outlets and a new super marina suitable for luxury yachts. The government has planned a new airport in the region which makes it more easily accessible for foreign investors and potentially boosts its tourist trade.

Larnaca is an ideal destination for golf fans as it had a good climate and already established golf developments. Plans are proposed to encourage golfers to visit the region which could make it compete with more established golfing destinations such as Portugal. The marina is redeveloped to make it a major cruise hub for the eastern Mediterranean. Zenon Consortium, which owns the Costa and Louis cruise lines, has been awarded a grant of almost £800 million from the Government to carry out the project.

Kathrin Pfeiler, Lufthansa’s general manager for Cyprus, told Financial Mirror that the new flights to the island from Lufthansa German Airlines which offer passage between Munich and Larnaca is a boost to the accessibility of Cyprus from mainland Europe. Meanwhile, Monarch also announced that it will increase the frequency of flights to Larnaca from Luton Airport to 14 services per week.

This follows a report by MRI Construction which found that one in six potential investors from the UK favored the Mediterranean island.