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 Cyprus – Investment planning for the futurePrior to the Republic of Cyprus joining the European Union in May, 2004, foreign nationals where restricted in the number of investment properties they could own and currency exchange controls made life difficult for investors. However accession to the Union as now removed all of these hurdles to European citizens and the islands property market is starting to take off, albeit with some sensible planning control in place. Cyprus as long been popular with the British, primarily for holidays, but the last ten years has seen a dramatic rise in the number of families buying for investment on the island. Cyprus is now home to thousands of European ex-pats, all of whom enjoy a low cost of living coupled with low taxation and an almost none existent crime rate. However possibly the most important consideration for Brits is that the legal system is based upon the UK and some 75% of Cypriots speak English. Although Cyprus is still thought of as a retirement market improved communications are allowing younger families to spend more and more time on the island whilst still keeping in touch with their business back home and this has lead some resort communities constructing business centers within their developments. It is important to remember that Cyprus is an all-year-round resort with an average 320 days of sunshine per year. Because Cyprus recognizes British Trusts it was originally set to benefit the most from Gordon Browns proposed SIPP's program. However following the governments U-turn in disallowing residential property from self administered pension funds there is some relief on the island that the local market will now develop without experiencing an unsustainable boom cycle. Nevertheless property prices have risen by 18% over the last year and with the prospect of Cyprus joining the European monetary system in 2007, experts are predicting a large jump in the investment property prices of quality developments on the island. Based upon economic data complied by Price Waterhouse Coopers, A PLACE IN THE SUN's producers put together a formula for growth based on properties that were either under or overvalued as well as allowing for the potential of rental income based over the next ten years which shows a 188% return for Cyprus. To further back these predictions and to underline the value of the overseas property market a new study by Barclays Bank shows that the number of Britons who own a property abroad is set to double in coming years. The study shows that 2.2 Brits already own property abroad and a further 2.2 million are certain of buying abroad in the future. These conclusions are based on a survey in which five percent of the sample claims to already own property abroad, five percent state they intend to buy, and 37 percent state they are considering buying. For reasons already stated, Cyprus stands to benefit from this continued interest in overseas property purchase. A large proportion of visitors, permanent residents and investors are drawn towards the coastal town of Paphos and with a major investment in infrastructure due to commence shortly this is seen as the "hotspot" of the island. To allow for this expansion plans have been announced for a new international airport, to be completed in 2008 with facilities to cater for 2.7 million passengers per annum. In addition a new one thousand berth luxury marina is to be built near Coral Bay along with a rejuvenation project for the old Paphos Harbor and major beach improvements. Also included is a $1 billion mixed-use development. The very first project of its kind in Cyprus and one of the largest in the world, the development of a 250 acre site, which is to be known as "Neapolis" will include a new hospital, private university, research and development center, office park and international business center, plus a wide range of cultural and leisure facilities. Located in the hub of Paphos within the Geroskipou Municipality, 800 meters from the beach and approximately two kilometers from the town center it is predicted that the socio-economic benefits of this multi-million pound development will create thousands of new jobs on the island. This is in line with the stated aim of the Cypriot Government to develop the island as an international business center while reducing the dependence on traditional traditional tourism, and attracting wider numbers of visitors by offering state-of-the-art educational and medical facilities. The healthy and sustained growth of property sales on the island has allowed developers the chance to plan larger developments that are in effect self contained residential resorts featuring all of the amenities that a vacationer or permanent resident might require. An example of this new thinking is St Nicolas. This master planned, gated community is currently being constructed by Universal Vacations Realty Limited, just outside of Paphos and along with the adjoining Thalassa View project will include some three hundred apartments and town homes set around seven large swimming pools. Residents and guests are also able to use a private clubhouse with an indoor heated swimming pool, spa, health center, restaurant and bar. In addition there are shops, mini cinema, tennis court and jogging track. The popularity of St. Nicolas is shown in its sales figures with just over 200 of the 220 units already sold during a six month period. Completion is due for mid 2007 and the remaining studio apartments start at CYP 49,000 and two bedroom apartments CYP 105,000. All prices are plus VAT at 15%. The newly announced development of St. George Hill's, also by Universal Vacations Realty Limited, will continue the theme of a luxury, gated, all inclusive resort community. This ambitious project will be constructed equidistant between Paphos and Coral Bay, on an elevated location just above the summer humidity level. Most of the planned three hundred studios, apartments, town homes and individual villas with private pools will enjoy sea views and surround seven outdoor swimming pools. The clubhouse will feature an indoor heated pool, spa, health center and private cinema, along with a business center with wi fi connectivity for guests who want to stay in contact. The "Village style Piazza" will include restaurants, bars, shops, beauty therapist, hair dressers, etc. Outdoor activities can be pursued on the tennis, squash courts and jogging track. Children are also catered for in their own play area which includes a water park and lazy river. With an eye on the vacation rental market there will also be an on-site management and rental office along with a licensed Wedding Chapel. Prices will start at CYP 65,000 for the studio apartments with town homes in the CYP 145,000 range and Villas with pools from CYP 199,000. All prices are plus VAT at 15%. Further details can be obtained from Universal Vacations Realty Limited in the UK on Tel. 01743 354393. Email. Heather@CyprusFirst.com Or visit www.StGeorgeHills.com |
