Cyprus Real Estate News and Property Market Reviews

New figures from the Cyprus Central Bank indicate that the number of loan approvals for home purchases increased in April when compared with a year earlier.

The total number of loan approvals in the Cyprus domestic market accelerated in April, driven by property loans and loans to non financial organizations. The total value of loans stood at €44.52 billion which is up from €32.89 billion in April 2007. Property loans reached €8.73 billion in April which is also up considerably from the €6.33 billion in the corresponding month of 2007.

Investors are buoyed by the encouraging figures as the loans are clearly up from last year and Statistics on loans are typically used by real estate investors to predict the state of the market.

The property loan growth goes against all normal seasonal trends and may well reflect the encouraging growth of Cyprus’s economy which is growing at a faster rate than that of all the EU member states on average. Global Property Guide has said that despite a global economic slowdown, property in Cyprus continues to hold its value and is increasing in a faster pace. The country has seen the cost of property showing a rise of 13.26 per cent last year.

Recently the European Central Bank has praised the Authorities on the island for their effective handling of the currency changeover.

Popularity: 28% [?]

The attractiveness of high-quality, off-plan properties in Cyprus is one of the reasons it is in high demand among UK investors, according to a media report.

Cyprus Property Magazine has reported that most Britons who are buying a residence on the island are purchasing it before it has been built. Therefore, investors who buy a property could find their assets appreciates in value and are worth significantly more in the future. However, the publication has recommended investors to ensure all the legal requirements and required Planning; Building permits have been met before making a purchase.

Overseas investors are also told to look for bargains. People could still snap up cheaper alternatives somewhere on the island, despite rising property values. A recent report from the Times has stated that the island’s property values start at around £77,000. The house values are 17.5 per cent higher than at the same time a year earlier and the values rose on by 3.7 per cent every month. The figures will be positive reading for overseas property investors as it means that the price of residential property in Cyprus is continuing to increase.

Recently Home Move website has praised Cyprus for offering a strong and vibrant economy, which has led to capital growth in its property market.

Popularity: 36% [?]

The Times has stated that overseas property investors could stand to benefit from growth in the Cypriot housing market as the property prices in Cyprus are rapidly catching up with established markets.

Cyprus house prices started at around £77,000 and the house prices went up by an “impressive” amount last year. The prices are approaching those of similar markets such as Spain and the rate of house price growth in Cyprus is outpacing many other European countries. According to Financial mirror reports, the average price of a property on the Mediterranean island is now £132,135.60 and the values rose on a month-by-month basis by 3.7 per cent.

The official figures from the Royal Institute of Chartered Surveyors (Rics) revealed that property values in Cyprus went up by 15 per cent in 2007 whereas Spain saw growth of just three per cent throughout the same period. The figures are positive reading for prospective investors, as it means that their purchase would appreciate in value in the future.

Paul Collins, overseas property editor of BuyAssociation has commented that Cyprus is likely to experience surge in house prices over the next few months. He further said that the result of the property boom would be long-term and pertains to both commercial and residential buildings.

Popularity: 43% [?]

The recent survey by property investment magazine, Jet-to-Let has revealed that investor interest is continuing to drift away from the UK buy-to-let market and towards foreign investment opportunities. Cyprus retained the top spot, which is unchanged from 2007, with France and Spain property ranked second and third. Nearly 50 per cent of investors said they have planned to invest in foreign properties in the next 2 years, with 35.8 per cent eager to invest within next year.

Dominic Farrell, editor of Jet-to-Let magazine has said that not to be surprised of Cyprus bagging the top honors in the survey because the adoption of the Euro, tax-efficient environment and the possibility of restrictions surrounding property ownership being lifted in the near future makes Cyprus very attractive for investors and homebuyers alike.

Global Property Guide has stated that the island boasts some of the cheapest properties in Europe. Moreover the Land Registry system for properties that is similar to the UK system also makes it easier for UK investors. Derek Watkins of cyprus4investors has said that ‘Englishness’ of Cyprus makes it very popular with Brit buyers and it was recommended as a good buy-to-let destination.

Buy-to-let investors in Cyprus are continuing to see demand from incoming leisure travelers. Brits are said to account for almost half of the foreign arrivals in Cyprus during last 3 months. This is welcomed by Investors in Cyprus property market, as it indicates the growing demand for holiday accommodation. Besides, this could potentially lead to the increase of house prices in the most popular locations.

Popularity: 39% [?]

Cyprus attracts many foreign tourists due to its diverse range of attractions. Gulf Weekly has reported recently that Cyprus offers many attractive attributes including good food, culture, history and architecture.

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.

Popularity: 43% [?]

Cyprus will be one of the attractive destinations to invest in property during 2008 as Cypriot property continues to perform well, with a recent report showing that the growth of the housing market over the last 12 months as “phenomenal”.

This indicates that foreign property investors who enter the market early could purchase a home for a relatively low price, as values will considerably increase further down the line. In addition, property owners could potentially make a substantial profit should they choose to sell up in the future.

Global Property Guide has reported that Cyprus is one of 13 countries to have seen the cost of property increase last year with the rise of 13.26 per cent. Slovakia, Hong Kong, Bulgaria and Taiwan are few other countries which experienced price increase greater than that seen in Cyprus. The report suggests that the potential for growth is staggering and property experts have indicated that investors would be wise to make the most of it.

The Royal Institute of Chartered Surveyors (Rics) official figures revealed that property values in Cyprus went up by 15 per cent last year. Cyprus also offers attractive and reasonably priced properties in highly sought-after areas.

The Independent also stated that the Cyprus property market is performing well in the face of global economic problems, as house prices went up by one-fifth during 2007.

Popularity: 46% [?]

The Sotheby International Realty network founded in 1976 has more than 470 offices in the US, 29 in other countries and 9,000 sale associates. Their first office in Cyprus will be opened in Cyprus by the end of this year, with an elite 25 year licensing agreement and this is a move to cover the Eastern Mediterranean region. The Sotheby’s International Realty network provides influential brokerage to hook up the independent real estate companies to the esteemed consumers in the world.

The opening of new office of The Sotheby International Realty network signifies Cyprus’s appeal as an investment market is spreading across the world. Cyprus is no longer just a hotspot for investors from Western Europe and its reputation is rapidly growing in places such as US and Russia.

Recently The Sunday Mail described Cyprus as a hotspot for overseas investors, including holiday home buyers who want a residence for individual use. The publication added that people could enjoy historical sites, traditional countryside and Cyprus’ fantastic beaches all year round thanks to the favourable weather conditions. Michael R. Good, the CEO of The Sotheby International has said that their new development in this region comes at the time of the supreme economic growth for the region due to the booming tourist industry.

Cyprus’ appeal as a popular year round holiday destination makes the island a potentially lucrative market for rental property investors. Potential property investors are pleased to hear that house prices are raising by 15 and 20 per cent every year, those who have already invested stand to make a profit if they sell up in future.

Theo Vassiliou, general manager of The Sotheby International has said that their company is distinctively positioned to take lead of the luxury real estate growth in the eastern Mediterranean region.

This comes after the SaveBorrowSpend website predicted Cyprus could see a property boom and there would be price rises of up to 35 per cent this year.

Popularity: 32% [?]

Cyprus is set to become more and more popular with foreign property investors, an industry expert has said.

Overseas property development firm, Pafalia, has recommended that Cyprus is likely to become considerably more popular with investors, a development which should push up house prices in many areas.

Simon Cozzolino, a property consultant with property development firm Pafalia, said that house prices have risen by 470 per cent in just over a decade. The Cypriot property market is undergoing a change. The market is shifting its focus to more exclusive developments rather than single apartments.

He further added that high-end villas are now priced around £312,000 from last year £150,000 for homes. He explained that as the budget has increased, value of properties purchased are greater which means even fewer properties are sold, they will be of greater value. Property experts consider the Cypriot market adjustments to take into account changes in price, taste and the Spanish experience of saturation of properties is a good trend.

ShelterOffshore.com has recommended Cyprus as it offers a number of financial attractions to older expatriates from the UK. The relatively low cost of living and favourable tax regime are flagged up as its main benefits.

Popularity: 33% [?]

A British couple have spoken positively of his recent acquisition in Cyprus and said that they are enjoying a “brilliant” life since they moved from from Stirling in Scotland.

Derek and Penny Wallis have spent nearly £275,000 to get a villa in Cyprus. They said that their quality of life had improved after moving to Cyprus. They also revealed that they have been able to take advantage of the favourable tax regime in Cyprus.

Furthermore, they said that their property purchase has appreciated in value and has increased over 40 per cent in the last eight months. This means that they could find themselves in line to benefit from considerable capital growth, as the future sale price will be much higher than its current value.

Mrs. Wallis commented that she he particularly enjoyed the good weather and she is now able to enjoy a much more relaxed pace of life.

Paul Collins, property editor of Buyassociation has said that the reason Cyprus is very popular with expatriates and particularly retirees from the UK is largely because it offers a lot of similarities with Britain, especially in its legal system. Explaining this Mr. Collins commented that People who are planning to spend their retirement years overseas don’t want to be somewhere that’s completely different from their homeland.

Popularity: 40% [?]

Eurostat, EU statistical service has revealed that Cyprus saw the biggest rise in household electricity prices in last 2 years, rising way above the EU average. Generally, electricity prices (inclusive of all taxes) for households in the EU25 rose by only 4.6% between January 2005 and January 2006, Cyprus saw a rise of 31.4% in the same period. Industrial electricity prices are also higher in Cyprus 11.36 euro per 100 kWh.

European Union report said the reasons for this price increase are Cyprus is a cut off, island country with no direct physical energy links to other EU Member States, a comparatively small electricity market and gas market. Another reason stated is the fast increase is Cyprus’ huge dependence on oil for electricity generation. The tax portion of these prices was 14.4% in Cyprus which is comparatively lesser in Cyprus when compared to EU states where Denmark and Netherlands has 50% and 40% respectively.

Rental properties in Cyprus are seeing greater demand as a result of a year-on-year increase in tourist numbers. This includes tourists from various European countries, as holidaymakers came from places such as Germany, Greece and the UK. Britons are said to account for almost half of the foreign arrivals in Cyprus. The price increase in electricity makes it clear for shrewd investors as they start thinking about the energy utilization of their Cypriot property, as increasing fuel costs may cut down their rental profits or increase maintenance costs.

Owners of rental accommodation in Cyprus are checking out for alternative sources of energy like solar panels as Cyprus’s has year round sunshine and exploiting wind power or geodesic power if your property is on a cliff or has running water nearby.

Popularity: 38% [?]