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09/05/07 - British
Expats Driving Cyprus Boom |
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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