Cyprus Investment: Economy
Cyprus property investors should consider the country’s economic situation. Cyprus has a stable economy with healthy annual growth – annual GDP averages between 3% and 4%. Experts predict economic growth of 3.6% for 2008 and 2009, considerably above the expected eurozone average. Cyprus’ EU accession in 2004 and its adoption of the euro in 2008 have added to its attractiveness for foreign investment. Cyprus offers investors low corporation tax of 10%. In Cyprus, land and property investment has few restrictions and with the prospect of reunification with Northern Cyprus closer than ever before, Cyprus property investment is looking like a wise move.
Cyprus Investment: Tourist Industry
Cyprus has been a popular holiday choice for years and Cyprus has a booming tourist industry. Visitor numbers increase annually with over half Cyprus’ tourists coming from the UK. Cyprus has strong historic and cultural links with the UK and British visitors are attracted to this familiarity. Tourism is vital to the Cyprus economy and the government’s Strategic Plan for Tourism 2010 aims to double tourist revenue and encourage more diverse tourism with high quality facilities, such as marinas and golf courses developments. All these factors add to the attractiveness of Cyprus land and property investment.
Cyprus Investment: Property Potential
The choice of property in Cyprus is vast and although Cyprus property prices have been slightly affected by the global economic crisis, they are continuing to rise. Knight Frank places Cyprus 7th in their global ranking for Q2 2008 (up from 20th place in Q2 2007). There is a strong Cyprus buy-to-let market and average Cyprus rental yields are just under 4%, while rental yields in Nicosia, the capital are highest at around 5%. For more information, download the Cyprus Land and Property Investment Guide.
