According to the Figures released yesterday by the Cyprus Statistical Service (CYSTAT), the number of building permits authorized by the Municipal Authorities and the District Administration Offices during August 2009 was 578 which provided for the construction of 900 dwelling units. The total value of these permits reached €153.8 million and their total area 176.6 thousand square meters.

5,897 building permits were issued during the period January – August 2009; an increase of 5.1% compared to the corresponding period in 2008. The total value of these permits increased by 7.2%, while their total area decreased by 6.0%, reflecting a shift away from the construction of low value/low quality dwelling units to the construction of higher value properties.

Property Index, which specializes in overseas real estate, stated that Cyprus is still a popular location for UK property investors, beating rivals such as Greece and Egypt.

They revealed that investors are increasingly focusing on cheap real estate bargains within the island’s low-priced market.

The firm says it believes that Cyprus has “plenty of potential” for new investors and that a range of forthcoming golf course developments will help boost the tourism industry during the global economic downturn.

Cyprus has traditionally been known for its mountain ranges, beaches and warm climate, the government is now launching promotional campaigns to draw attention to the island’s rich history and appeal to a wider range of visitors. The rich and captivating Cypriot culture and the genuine hospitality of its people has made Cyprus an ideal place for the discerning foreign tourists.

The Cyprus Association for Cultural & Special Interest Tourism (CSITA) is promoting the island’s unique cultural and special interest attractions. The government expects to attract tourists fascinated in its vast cultural diversity as Cyprus is lying on the crossroad right in between European, Asian and African continent. The impressive archaeological sites and historical monuments include Greco-Roman theatres, Gothic monuments, mountain castles of St. Hillarion, Greek Orthodox churches, cathedrals, Aphodite’s birthplace, tombs of the kings, mythological mosaics in Paphos and many more.

Property writer Kevin Moore has stated that tourism has opened up Cyprus property market as many of the overseas investors who are entering the market now were former tourists who had previously taken holidays on the island.

This comes after the news that Cyprus Tourism Organization (CTO) wanted to increase the number of foreign tourists in the country by ten per cent next year.

George Gabrielides, director of Leptos Calypso Hotels, said that Prices for real estate in Cyprus are comparable to prices in St. Petersburg. He added that Price for apartments start from $150,000 and for villas from $250,000. Cyprus offers good value for money, as houses and apartments tended to be cheaper than those in other European countries.

Mr. Gabrielides said that interest rates in Cyprus depend on the type of currency; anyhow the figure is rather low from 3.5 percent to five percent a year. He noted that nearly 200,000 Russians visit Cyprus every year. There are two Russian schools and three Russian newspapers in Cyprus.

Polina Yakovlyeva, the head of Elite Real Estate at Knight Frank St. Petersburg has said that the EU accession and rising property prices in Cyprus had attracted the attention of Russian investors. She said that Cyprus is the only island where fifty percent of property-owners are Russian and that is due to low taxes and low market risk.