Property investors has to be energy-wise
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.
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