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The property boom in Cyprus continues apace
with Brits keen to invest in property, both as residents or
in the buy-to-let sector...
The country has all the attractions that Spain and other countries
once had, but these now exist in far greater quantity and quality
on the Mediterranean island.
It's a point worth noting, because some have predicted bad news
for the Cyprus property market. Recently, London Greek News,
which cited no quote or comment in support of its contention,
claimed the property market on the island was heading for a
Spanish-style decline because of over-saturation of development
in certain areas.
However, Mr Calvert states, what is happening is that people
are actually moving from the most heavily developed places to
new locations, such as inland spots.
He said: "Paphos, places like that, prices are increasing on
a year by year basis. People looking to buy inland can pick
up some definite cheaper properties, and obviously the possibility
of VAT change on the land sales next year should help to push
up the housing demand."
Moreover, he added, the ex-pat appeal of Cyprus is now ahead
of other locations, which is helping drive demand as it provides
"the same sort of ex-pat community that Spain used to offer".
"For the last 12 to 18 months, we've had a surge on Cyprus,
with all kinds of different properties."
Cyprus great for Brits
There are good reasons why the British in particular should
boost the property market, either as residential or buy-to-let,
in southern Cyprus.
"They speak the right language; they drive on the right side
of the road. They've got the likes of Monarch, one of the cheap
flight airlines flying in there. So it's becoming more and more
accessible for people buying in Cyprus."
As it happens, airlines are an issue that has been raised as
another factor supposed to dampen the market. New airport taxes
introduced in April are to rise in June and again in November.
According to Cyprus Mail, the International Air Carriers Association
believes Larnaca Airport will become the most expensive in the
world as a result.
Mr Calvert doubts this will harm the situation much: "Everywhere
has got airport taxes and it doesn't matter where you go now,
there's always some sort of tax…so I don't think it’s going
to make a huge difference."
Judging by other countries, including Britain, Mr Calvert may
be right. Taxation of flying is popular on environmental grounds,
not least, cynics might say, with governments counting the cash
rolling in. Lots of countries may tax flying, but not all countries
can offer sunshine and appeal to ex-pats.
Mr Calvert concluded by stating his view that over the next
three years, Cypriot property prices will carry on rising.
Cyprus the ‘new Spain’
Plenty more share this view. Directly addressing the claim that
Cyprus will go the way of Spain, chartered surveyor Antonis
Loizou told the Cyprus Mail this week: "The first thing that
buyers look for is the country, with price being second on their
wish list. If we look at everything on an equal basis, Spain
is more expensive than we are, so I'm not worried."
Property law specialist George Couconis told the same paper:
"If I'm being honest, I kind of expected what's now happening
in Spain. The market there is tired," adding that plenty of
UK estate agents were promoting Cyprus and other countries rather
than Spain.
The point made time and again by these experts is clear: Cyprus
is different to Spain. Different economically, different in
terms of what it offers and above all a market with plenty more
lower priced property available. On the basis of all this, one
may feel confident that if Spain sneezes, Cyprus won't catch
a cold.
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