Cyprus Property Investment News

Investors cash in on pre-euro prices in Cyprus

Low property prices in Cyprus are attracting real estate investors in advance of the country’s accession to the euro zone. Property investors are looking to take advantage of the current pre-euro prices before Cyprus joins the euro zone and prices increase, as is predicted.

Industry experts are noticing an increase in the number of investors turning to the Cypriot property market. They state that this is in part due to the low prices currently on offer, prices that are likely to increase significantly following Cyprus’ euro zone accession on January 1st 2008.

Once Cyprus joins the euro zone there is strong evidence that property prices in the country will increase, given historical precedence of other countries experiencing such uplift once adopting the euro and becoming a full euro zone member. Some analysts speculate that prices in Cyprus could rise by as much as 35% on average. It seems that investors are getting into the market now with a view to profiting from this predicted upsurge from 2008 onwards.

When Cyprus joined the European Union in 2004, the country received a boost to its economy and housing market, in part directly due to EU accession and in part due to other factors. Royal Institute of Chartered Surveyors’ European Housing Report of 2006 reported that, “indications are that house prices have been rising in double digits annually and have doubled over the past five years…Much of the growth has been stimulated by high inward migration, especially of people from the UK….With good economic growth forecast to continue, continued population growth and accession to the euro zone on track for 2008, prospects for the housing market remain buoyant.”