According to financialmirror.com reports, the purchase from Hayasa Properties also generated EUR 3.2 mln in capital gains tax, in addition to a transfer fee of EUR 1.45 mln, which left the Inland Revenue Service very pleased. The buyer, Hayasa Properties Ltd, said that the new purchase will be developed into a multi-storey venture that will include a modern boutique hotel, commercial and residential space and the capability to rise up to 18 floors with five underground levels. However, plans are still at an early stage and a development project has not yet been finalized.

Martin Pearce, UK sales manager for Aristo Developers, has told the Liverpool Echo that Nicosia presents the perfect opportunity for property investors and the upward pressure for property due to the city’s developing significance as a financial and business hub is raising prices and in turn leading to “increased monthly rental rates”.

The expert stated that tenants are “able to pay well” for the right home, with a good year-round demand in Nicosia as the city is developing and advancing its international reputation.

Overseas Property Professional (OPP) has reported that Purple International saw a sharp rise in sales in the second half of last year in response to huge discounts designed to tempt buyers back to the market. OPP also drew attention to a shift into the type of lifestyle purchasers and people relocating to warmer climates increasingly replaced the typical investors. Some buyers were able to pick up property with discounts of as much as 30 per cent.

Angelos Koutsoudes, managing director and partner at Purple International, told OPP “The first half of 2009 was dire but the second half was brilliant. Because of the volume we sell and … connections with developers, we are able to negotiate big discounts.”

In related news, Graham Norwood draws attention to the cheap prices developers and estate agents are offering to tempt UK buyers back to its market. Property prices have wintered a negative pricing adjustment as the country was hit by the global effects of the credit crunch meaning it is now cheaper to buy property on the island, according to Dailymail reports.

Justin Stayles of PropCyprus told the paper said: “Prices are just about stabilizing after a long period of freefall. If you’re going to buy at the bottom of the market, get in quickly.”

Speaking after a meeting with political party representatives and social partners, as well as government officers, to discuss the European Commission document on the future of the Lisbon Strategy, Minister of Finance Charilaos Stavrakis said that the challenge now is to maintain this “‘potential advantage” and the Ministry of Finance would be doing everything it deemed right to solve structural problems that have been to the detriment of society for many years.

He recalled that the potential rate of growth in Cyprus was historically around 4% and, due to the global crisis and the recession, it has dropped to 3-3.5%. He pointed out that ”the respective rate of the European economy is 2% and has now dropped to 1-1.5%.”

The Minister noted that the government has already presented a comprehensive package of proposals, which could solve the structural problems of the Cypriot economy, increase the growth rate and reduce unemployment, adding that some of the measures need more processing and approval by the House of Representatives.

Meanwhile, a recent study conducted by investment website Homes Overseas indicated that Cyprus is still a popular destination for those considering overseas property investments. The island offers bargain getaways that will help travelers escape the bad news of the current economic climate.

According to the Times, The country offers Mediterranean food and weather, advantageous tax laws, English language radio stations and the combination of being under five hours away by plane and a minimum temperature of 15 degrees Celsius, even in winter, makes the destination ideal for a holiday home for Brits.

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.”

Les Calvert director of overseas property portal Property Abroad.com said:

“We have every reason to believe that the Cyprus property market will recover quickly as the international economic recovery gathers pace. There have been many problems with fraud over title deeds, and yes, now the economy has fallen into recession, but we have faith that things will recover pretty quickly once the international recovery begins, especially when there is economic recovery in key Cyprus markets like the UK.”

Les gave a reason for his strong belief in the Cyprus property market that the credit crunch will actually have a benefit. Because so many people lost money on developments that will never be completed, buyers are increasingly keen to do their own research. For that reason the problems that Cyprus has had with title deeds needn’t stop people from buying in the country.

The portal suggested that the rate of decline of property prices in Cyprus is now slowing every month. Slowly but surely it is reaching the bottom. The massive slide in Cyprus property transactions, especially those involving foreigners will have stopped by the end of this year. With more bargains available, investors are obviously keen to buy in the country at just the right moment, so it will, not only not lose any value, but stands to gain it very quickly as demand grows to normal levels once again.

As property prices in Europe’s most popular destinations grew immensely, Cyprus will become the inexpensive choice, and it is set to become one of the most popular destinations in Europe for British property buyers as it got the emerging market seal of approval celebrity golf course development.

When sales traditionally slide off at this time of year, the highest number of monthly sales this year is what more interesting to the analysts. It is highly unlikely to be a pure coincidence that this rise in sales against the season comes as the government and Cypriot legal institutions have been working hard to resolve the problems over Cyprus title deeds.

New legislation from the Cypriot government promises to allow people to get their deeds issued from the land registry, from the moment they pay the deposit and sign the sales contract. This will stop developers from selling to multiple people.

Les Calvert director of overseas property portal Property Abroad.com gave a reason for his strong belief in the Cyprus property market that they believe strongly in the Cyprus property market, because the credit crunch will actually have a benefit. Because so many people lost money on developments that will never be completed, today’s buyers are increasingly keen to do their own research. For that reason the problems that Cyprus has had with title deeds needn’t stop people from buying in the country.

Meanwhile, Cyprus’ new golf courses and proposed 2nd Eurodisney are one of the few reasons to believe that Cyprus property has a bright future. The Cyprus government gave permission to build 14 new golf courses on the island; permission was granted last year and construction has started on one of the courses.

Cypriot President Demetris Christofias opened the new Larnaca terminal, built by a consortium of French and Cypriot companies, at a ceremony attended by French European Affairs Minister Pierre Lellouche. He said that this will boost flagging tourism and boost prospects of it becoming a regional transport hub.

Larnaca airport now has double the capacity to handle passenger traffic with The 100,000 square metre high-tech terminal which is four times larger than its predecessor, just a couple of kilometres away on the island’s south coast. The construction took three years at a cost 656 million euros in what is one the largest infrastructure projects ever undertaken in Cyprus. Flight operations from the new airport began, with Cyprus Airways and easyjet flights only and become fully operational from November 17. Officials hope the new airport will also attract foreign investment to Cyprus.

In a bid to attract more tourists and promote Cyprus as a regional service centre, an upgraded airport in Paphos, on the west coast opened last year at a cost of 127 million euros and is able to manage 2.7 million passengers a year.

According to Finance minister Charilaos Stavrakis, in the end of 2009, the country will see an economic contraction of 0.5 per cent, but stated that GDP will rise by the same amount in 2010, AFP reports. Meanwhile, Interior minister Neoclis Sylikiotis commented that ” Property investment is much safer in Cyprus than anywhere else”, adding that regardless of the world economic crisis and the problems of neighboring countries, “the housing sector in Cyprus is quite healthy and still in positive growth rate.”

The country looks on course to be the sole member among the 16 countries in the bloc to record positive economic growth in 2009, RTE reports. Although the economy slowed in the first quarter of the year, the report said: “Satisfactory growth rates of both construction and the wider services sector limited the extent of this deceleration.” Such reports may interest those thinking of investing in the country, as may the interior minister’s pledge that new building and registration rules will be introduced to further enhance the sector.

In related news, George Mouskides, Chairman of the Association for the Promotion of Property Development said that the situation in Cyprus will begin to become more positive and this, according to all visible signs, will first and foremost influence the property sector.

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.

According to a Daily Mail feature, Cypriot residences can now be acquired in cheaper prices and a two-bedroom apartment in paphos with a sea view comes for £81,000. Editor of Cyprus Property Magazine Nigel Howarth said prices are now back at 2004 levels.

Those keen to invest in property at a bargain cost may find now is the ideal time to do so as The Cypriot property market is one of the best that anyone can invest in, Interior minister Neoclis Sylikiotis commented that some media coverage of the country’s market has been unnecessarily negative, the Financial Mirror reports.

Rather, he countered, ” buying properties is much safer in Cyprus than anywhere else”, adding that despite the Global economic crisis and the problems of neighboring countries, “the Cypriot housing sector is quite healthy and still in positive growth rate.”

Such comments may interest those thinking of buying properties on the island, as may the minister’s pledge that new building and registration rules will be introduced to further enhance the sector.

In related news, Cyprus will see its economy grow again next year as Finance minister Charilaos Stavrakis told reporters that over the course of 2009 the country will see an economic contraction of 0.5 per cent, but stated that gross domestic product will rise by the same amount in 2010, AFP reports.