Property for Investment in Cyprus

Southern Cyprus has been a popular holiday destination for some time now, and since the recent demand for second homes in the sun this has strengthened an already strong market.

Demand is increasingly strong for property purchase in Cyprus, mainly due to the warm winter climate making it a superb destination for retirement as well as winter sun holiday makers. It is one of the few European locations that can boast a warm dry climate during the winter months making it an undeniable favourite among buyers. Indeed, Cyprus has been likened to a Mediterranean paradise, possibly due to the beautiful landscape, friendly people, low crime rate and low cost of living. The fact that British is widely spoken in Cyprus, with English law forming the basis of Cypriot Law, adds to the appeal of property purchase here.

There is a healthy rental and resale market in Cyprus (especially in Paphos), whereas the east side of the island is expected to vastly develop over the coming months. Paphos is the most popular destination for tourists and homebuyers, which offers stunning sea views from its steep hills, a good infrastructure and most importantly, a year-round tourist industry.

Adding to the attraction of Cyprus is the low tax rates, and encouraged by the accession of Cyprus to the European Union last year, investors are flocking to the island in order to snap up buy-to-let properties that are likely to double in value over the next three years. Joining the Euro will also instigate a drop in mortgage rates creating a further surge in property prices.

Location
Cyprus is an island located in the Mediterranean Sea, south of Turkey and west of Syria.

Population
780,133 (2005 estimate). The overall population density is 84 persons per sq km. About 69% of the island's inhabitants live in urban areas.

This combines the population of the Greek & Turkish sectors. The population is made up of approximately 85% Greek speaking Cypriots and about 12% are ethnic Turks. The remaining population consist of several ethnic groups.

The Greek Cypriots occupy the southern two-thirds of the island and they control the only internationally recognized government. The Turkish Cypriots occupy the northern third of the island and in 1983 declared independence and formed the 'Turkish Republic of Northern Cyprus' (recognised only by Turkey). Both communities retain the customs and national identity of their counterparts on the mainland.

Economy
The Greek Cypriot economy is prosperous but is vulnerable to external influences. Tourism and finance are the main service sectors that drive Cyprus's economy. However, political stability and economic conditions in Western Europe cause fluctuations in the economy. The Greek Cypriot sector of the economy is significantly more prosperous than the Turkish Cypriot sector, and it contributes a far larger percentage of the island's gross domestic product (GDP). The Turkish Cypriot sector, which has had difficulty attracting foreign investment, remains heavily dependent on farming as well as upon large financial subsidies provided by the government of Turkey.

Government
Cyprus is a republic. A separation of the two ethnic communities inhabiting the island began following the outbreak of communal strife in 1963; this separation was further solidified after the Turkish intervention in July 1974 that followed a Greek junta-supported coup attempt gave the Turkish Cypriots de facto control in the north; Greek Cypriots control the only internationally recognized government; on 15 November 1983 Turkish Cypriot 'President' Rauf Denktash declared independence and the formation of a 'Turkish Republic of Northern Cyprus'.

Main Cities
The capital of Cyprus is Nicosia (which is divided into both Greek and Turkish sectors). Limassol, Larnaca and Paphos are the main cities and are mostly situated in the south of the island.

Weather
Cyprus has a typical Mediterranean climate, with hot, dry summers and a cool, rainy season that extends from October to March. The mean annual temperature is 21?C (69?F). The annual rainfall is modest, averaging less than 50 cm (less than 20 in).

Religion
The majority of the Greek Cypriot population adhere to the Church of Cyprus (about 78%) which is an independent Greek Orthodox Church. The Cypriot Turkish population are mostly Muslims, from the religion Islam. There are a small minority of Roman Catholics and Jews.

Language
The official languages are both Greek and Turkish (Greek being the primary language of the Greek Cypriot sector and Turkish being the principal language in the Turkish Cypriot sector). English is widely spoken & understood in the main towns.

Currency
Greek Cypriot area: Cypriot pound (CYP)
Turkish Cypriot area: Turkish Lira (TRL)

Local Time
Standard Time = GMT+2
Summer Time = GMT+3

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