Budget airlines will boost Cypus tourism and property markets

Panos Englezos, Chairman of the Cyprus Tourism Organisation (CTO), has announced he will increase efforts to court budget airlines to include the island as a low-price destination.

This will have a dramatic effect on the tourists industry in the country, and a follow on effect on the property market both for overseas buyers and buy-to-let investors.

As has been shown in other countries - most notably Spain - cheap and easy access is key to developing a strong overseas property market.

Alongside attracting budget air routes, the CTO is also calling for an increase to its current budget to increase overseas advertising for the island.

According to Englezos, the current push has already attracted a “significant increase of arrivals from Greece, Russia and Scandanavia.”

The CTO chairman said that Cyprus receives an estimated annual £1.3billion from tourism, which makes up around 15% of the island’s GDP.

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Now is the best time to invest in Cyprus.

There are many variables to take into consideration when making a property investment decision – particularly with regard to off-plan investments. Such variables include the market, the developer, construction timeframe, tangible product and of course finance. The finance element to an investment can be broken down into several key areas including that of currency. One currency in particular that’s building pace this year is the Euro.

With several key countries focused on adopting the Euro, property investors must fully appreciate what it means to take on the currency. Cyprus is one such market on the verge of switching to the Euro from its traditional currency – the Cypriot Pound. The move to the Eurozone comes on January 1, 2008 for Cyprus and with it, changes to the economy.But what does this mean to Cyprus and those of us looking to invest in the Cypriot property market?

Plenty. Simply put, investing before the adoption allows your investment to flourish, as property prices will almost certainly increase after the currency switch. Membership of the Eurozone means a lot to Cyprus.

It will help shield the island against economic turbulence and significant interest increases.One of the most important reasons for Euro adoption is price stability. Price stability is the main objective of the European Central Bank’s monetary policy. Furthermore, since the Euro market is highly liquid, this will result in increased efficiency of the country’s financial sector and the better allocation of financial resources.

The Euro will strengthen macroeconomic stability in Cyprus, ensuring low inflation and low interest rates currently enjoyed by Eurozone members. The single currency brings stable prices for citizens and more opportunities for businesses. Moreover, being part of the single currency will further promote trade opportunities in the global economy and attract a large amount of foreign investment.

Cyprus’ interest rates have already fallen considerably. The long-term interest rates declined by some 330 basis points from about 7.5 per cent in December 2001 to just 4.25 per cent in December 2006. Furthermore, over the same period mortgage interest rates fell 160 basis points from around eight per cent down to 6.5 per cent. This brings very practical benefits, allowing both domestic and foreign investors to borrow money cheaply thus fuelling property purchases and spurring demand.

As a Eurozone member, Cyprus will have a currency with a global position comparable to the US dollar. The role of the Euro in international trade, the global bond market and as an official reserve currency has increased substantially and continues to grow in importance. The attractiveness of the Euro as a world currency means that tourists can increasingly travel all over the world with Euros in their pockets while businesses are increasingly able to trade in Euros beyond the borders of the Eurozone.

Cyprus’ property market has enjoyed strong, consistent growth in recent years with more of the same to come and with the milestone of the Eurozone just around the corner, now is a good time to invest in Cyprus.

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Property Investment Hot Spots

Cyprus, Prague and Romania are currently exceptional property investment hot-spots. They has double-digit capital appreciation coupled with strong rental demand and not to mention no Capital Gains Tax after owning the property for five years make it one of the world's best property investment opportunities. The government also has strong incentives for external investment from other countries.''

Thousands of Brits are choosing to move abroad and the Balkan states are proving very popular. There are now 10,800 Brits living in Bulgaria, while another 9,500 have moved to Romania. Strong economies and increased tourism have seen house prices rise significantly in Eastern Europe, with Poland another potential hotspot.

PLACES TO INVEST

Prague
High Capital Growth 10%+ predicted pa over next 5 years min
High Rental Yields 5-8%
Strong rental demands - mainly long term lets
Central European Location
No CGT after 5 Years
Tenancy Laws in favour of Landlord
Strong Economy
Imminent ascension into Euro will devalue local currency by 25-33% at today's rates
Low deposits and 85% mortgages available to non-residents

Southern Cyprus
UK based legal system
Low mortgage rates and high LTV loans
Popular holiday destination
Part of EU
Well established/regular flights
Stable Economy
Already has experienced growth which is set to continue

Romania
Strong Economic prospects
Joined EU in 2007-06-12 Established Tourism market (currently 4.8% GDP and employs 5.8% of workforce)
Strong Government incentives for external investment
Low entry level property prices
Ski, hiking and beach opportunities not yet mainstream

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Marina Properties in Cyprus

If the Mediterranean is where you've always dreamed of living it's likely you have an image of a house with sea views basking in bright sunlight. But for buyers with sea legs the ideal property is located right on the water's edge, where your yacht can be accessed at any time for glorious trips on the crystal clear waters.

Marina properties are becoming more and more popular as developers realise buyers want a home in the sun with somewhere to moor the boat nearby. Whereas choice has previously been limited, now British and foreign developers are expanding this market with options in well know locations as well as in up and coming countries.

The coastline in the Mediterranean extends for some 46,000 kilometres, but with the thousands of islands contained within its boundaries the amount of on-shore land available is endless. What's more, marina properties tend to be designed with leisure in mind and many offer all the facilities of an offshore development, with indoor swimming pools, spa, gym, tennis, restaurants and shopping facilities.

Choosing where to live is sure to be tough with so much on offer.Spain has long been a staple choice with swanky resorts along the Costa del Sol, Costa Almeria and Costa Blanca all offering well established, sophisticated marinas.

However, Spain is no longer as profitable as it once, was with experts warning that the market is close to saturation. The location is, nevertheless, good for sailing as neighbouring France's Cote D’Azure and the Italian Riviera are lined with comfortable marinas which offer pleasant voyage opportunities.

The western end of the Mediterranean is fast becoming the choice for investors in the know. Turkey's reputation for world-class marinas is growing fast and with a stabilising economy and talks of EU entry, now is the time to invest. Turkey has some of the most beautiful and unspoiled Mediterranean coastline and houses the world's second highest percentage of endemic species, according to the World Wildlife Fund.

Sailing opportunities are excellent with many Turkish islands to discover, not to mention the proximity of Greece and its famed islands nearby. Bodrum, Marmaris, Fethiye, Antalya, Gocek and Altinkum are all good locations.Near to Turkey are Cyprus and Malta - also rising stars in the marina property sector. Cyprus is now classified as one of the top five most popular places for Brits to buy abroad and has two main marinas: Larnaka Marina and St. Raphael Marina. Cyprus also offers superb scuba diving and excellent on-shore night life. Malta and its smaller sister island Gozo are still relatively undiscovered by the overseas property market.

Its coastline is studded with naturally formed harbours, beaches and coves making windsurfing and yachting popular. The islands are ideal for boat owners as this central Mediterranean location makes cruising to a wide variety of destinations possible.So if you want the full Mediterranean experience when moving abroad, a marina property is thechoice for you. Just don't forget to pack the boat.

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Rise in interest in Cyprus property investment

Interest in property investments in Cyprus has increased significantly in recent times, according to an expert from the Property Secrets group.

Simon Tweddle, head of research at the independent analysts and commentators, has noted how property purchases among external investors has been particularly strong over the last year.Properties have increased in value in Cyprus by between 20 and 25 per cent, with the country perceived as desirable due to its cheap air access, predominantly English speaking population and low taxes.Asked whether a property boom were likely to occur in Cyprus in the near future, ahead of a 15 per cent VAT being placed upon land in the country sold after January 2008, Mr Tweddle said "that kind of boom has already taken place".

Mr Tweddle also noted how: "Quite a few UK [property] companies are starting to get a bigger interest in Cyprus – they're marketing Cyprus as an investment destination."With Cyprus set to join the Euro following EU approval later this week, he also speculated that such a situation would offer more "security" to the property market and "probably increase the short-term prices rises".

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