It is the holiday hot spot for Brits, in particular. What will the inclusion of the Euro do to this property market?
Popularity of Cyprus
First, consider why Cyprus is so popular. Cypriot property markets have continued to do well even as property markets in Australia, the UK, and the US take a hit. This is due to a number of things including the quality climate the location offers just about year round as well as the culture that is enjoyed by all ages. It's just around the corner for most European holiday seekers, too. There is little doubt that the tourism industry here will continue to do well.
In addition to these facts, property values in Cyprus are still low. They are rising though. Perhaps this month to month rise in values is one of the best reasons to invest in Cyprus. There are no signs that the property market here will cool in 2008 or beyond.
The Euro attraction
The Euro helps to allow travellers from one country do well in other countries. This makes travelling easier. It makes investing faster and simpler. Investors from other EU countries have an easier time taking advantage of Cyprus opportunities here.
English is spoken throughout Cyprus. This makes communication simple. In addition, the legal system here is based on English law, which makes it very simple for investors to invest and to understand the processes behind it. More so, Cyprus has a stable economy with low mortgage rates. All of these factors will only be benefited with the addition of the Euro.
Additionally, you must consider the demand for property in Cyprus. Property here is continuously in demand not only for second home buyers but for investors of all sizes. This demand has driven up property values accordingly. But, with the Euro coming on board, prices are more transparent. Many economists believe this will help to make investing here more affordable because it will be more competitive with other Euro based countries. This may help to drop the cost of travel here as well as holidays spent in Cyprus in general.
Others believe that the inclusion of the Euro will help with businesses as well, making invoicing and price costs easier to manage and clearer to see. This will allow them to be more competitive when doing business here. Foreign direct investment may happen more readily, which could help to improve the infrastructure and amenity of various programs as the nation sees an influx of funds.
Tourism to benefit the most
There is little doubt that tourism will be the largest benefited industry in Cyprus with the Euro coming on board. This is the case for many reasons. The Euro makes it easier for travellers which in turn will increase the demand for available, directly routed flights from the UK or other larger European countries. Several airlines have shown some interest in this already.
Investors Warned
While Cyprus continues to see record growth and most economists are predicting it to see between 20 and 25 per cent increase over the next few years, it is still necessary for the investor to take heed. The right investment is essential even after the Euro's appearance. It will be necessary to find the most appropriate areas to see increases and to avoid areas that are in danger of being oversold. Depending on your investment strategies, some areas may become overpriced quickly as demand continues to climb.
There is little doubt that investments in Cyprus will continue to be an ideal option for most investors after the Euro. How much of a difference the Euro will make on an already loved tourism location that is an investor favourite as well is unknown. It is very unlikely, though, that you will see any negative impact from this transition.
Lastly, note that whether or not it does show any difference in the property market, the Euro is already drawing additional attention to the area by foreign investors from around the world. Therefore, property will be even more in demand here as time moves forward.
