Mighty Aphrodite

It has long been associated with the Greek goddess of love, but it's the high returns and new EU status that are attracting UK investors to Cyprus. Ginetta Vedrickas reports

The Independent, 16 June 2004

There is one property hot spot that continues to attract attention, and not solely because it is one of Europe's sunniest destinations. Cyprus may have over 320 days of sunshine a year but it also has an excellent track record for property investment and developers and agents agree that the market has plenty of growth yet to come.

Prices rose by at least 20 per cent in the past year, partially fuelled by last month's entry into the EU as buyers rushed to get in before 1 May, but other factors may also have played a part. The Cypriot government's decision to allow EU members to own businesses outright on the island, coupled with a relaxation of rules with regard to rentals (previously non-Cypriots were legally not entitled to let their properties), encouraged investors. An estimated 60,000 Brits now own property on the island.

Mr Hamilton believes there are other reasons for the island's appeal: "The place is absolutely gorgeous, you can scuba dive and ski on the same day, and the temperature never drops below 60 degrees. The island's long association with the British means that English is spoken everywhere, the people are friendly, they drive on the left and, now that Cyprus is in the EU, Brits can live, work and own property freely in the southern part."

 "You can still get properties of an excellent standard at an affordable price," explains Hamilton. "Apartments start from £55,000, semi-detached villas are around £130,000 and wonderful beachside villas are around £150,000. Compared with Spain, that's good value."

Hamilton predicts price rises of another 20 per cent in the coming year. "I met one guy last week who bought eight properties from us. People are looking for sound investments and some are even buying because they can't get on the property ladder in the UK."

Evidence bears this out. A recent survey of overseas buyers by the Property Investor Show North found that 46 per cent of buyers surveyed cited "investment and rental returns" as their primary motivation for buying abroad. These were both factors in persuading Eileen Williams to invest in a one-bedroom apartment  in Larnaca: "I can't afford to buy in the UK but in Cyprus I don't think that I can go wrong," she says. "A friend of mine bought there two years ago and her property has already risen in value enormously." Williams paid £55,500 for her apartment, which she plans to use for holidays and will also let.

Investment potential may also benefit from increased tourism as EU membership shines the spotlight on newcomer Cyprus. Mr Cartwright explains: "The island has now become much more European, with Dutch and Belgian buyers now interested - they like the security of buying within the EU."