Your Move Cyprus, Limassol Property, Property Rentals in Limassol

General Factors

In the Republic of Cyprus, focus is on successfully meeting EU criteria since its membership in 2004, while it is clearly reaping the rewards of a strong and stable economy. The Republic now from the 1st January 2008 now with the Euro. EU accession has brought with it several benefits to the Cypriot economy and, amongst other things, the country now gains from increased EU financial assistance.

Interest rates in Cyprus are set at LIBOR 5.5 plus risk. Although these are considered to be high, they do not seem to stop investor activity; by liquidating their investments, investors receive cash returns which are significantly greater than lending costs, due to the great performance of capital appreciation.

Cyprus is currently undergoing the Strategic Plan for Tourism 2010 which aims at upgrading the facilities and resorts of Cyprus to 21st century tourism standards. This is good news for all kinds of property investors in Cyprus who are assured their properties and related amenities will fall in line with current demand. Investors should also expect to see an increase in the number of theme parks, eco-tourism, marinas and golf courses to cater for the diverse needs of modern tourists.

Economic Factors

Cyprus is considered to be a high-income country and holds 16th place in the world in terms of per capita income. The economy in Cyprus grew by 3.8% in 2005 – well above the European Union average. The island enjoys a standard of living that is higher than other European Union member states while economic performance compares very well to that of most other EU countries.
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The downturn of the Cyprus Stock Exchange pushed most of the capital towards the property market, since the stock market could not rise up to investor expectations, leaving the property market as the best major investment alternative in Cyprus

The banking sector is the major financier for both investors and developers alike. Cyprus property is expected to benefit from the uncertainty and pessimistic expectations in the English property market, since many investors prefer to transfer their capital to more secure property markets with better future potential.

British investors have very strong buying power in Cyprus and they can use gearing from their investments in England to buy significantly more in Cyprus. Since its joining of the EU in 2004, Cyprus has enjoyed capital growth of approximately 20% while property prices remain considerably lower (up to 30% lower) than in destinations such as France or Spain.

Political Factors

Since 1974, Cyprus has been divided into the government controlled southern two thirds of the island and the remaining one third in the northern part, administered by Turkish Cypriots. Shortly after founding the Greek Republic in the south, serious differences arose between the two communities about the implementation and interpretation of the new constitution. The Greek Cypriots argued that Turkish Cypriot interests were obstacles the efficient running of their government. Since a military coup in 1974, UN peacekeeping forces have maintained a buffer zone between the two sides. Apart from the occasional demonstration or incidents between soldiers, the island has remained completely free of violent conflict.

As the North generally continues to be a politically sensitive area with relatively complicated title ownership laws, you will find that most Cypriot companies will concentrate towards choosing to focus on the more stable south at this time.

Natural Factors

Cyprus has long held many attractions for British retirees and holiday makers alike. The warm climate, beautiful beaches, countryside and sedate lifestyle make it an ideal location for those seeking a quieter pace of life. Just enough rainfall and stunning hot summers, make Cyprus the ideal Mediterranean destination for an ongoing influx of tourists and property buyers. Beautiful golden Mediterranean beaches and ancient monuments, along with an interesting mix of international cultures are further attractions of the island.

The government has launched a new golf policy which will increase the number of 18-hole golf courses on the island from 3 to 14. This factor, along with continued property development all over the island, indicates significant growth, which can only be encouraging to foreign investors.

Other factors that make buyers choose Cyprus property above many other locations is the security offered by Cyprus real-estate investment, the fact that English is so widely spoken and the legal systems are reassuringly akin to familiar European standards.

Logistical Factors

A major tourist destination and the third largest island in the Mediterranean, the Republic of Cyprus is well equipped with international airports to serve an ever expanding tourist industry. The two major international airports with direct 5 ½ hour flights to the UK are located at Larnaca and Paphos.

Additionally, the road infrastructure is considered to be of great importance in Cyprus due to an ever increasing need to cater for today's more independent and adventurous tourist wishing to explore the island with ease. These roads will of course increase ease of transit of merchandise as well as people to every location on the island.