Cyprus

Britons have been holidaying on Cyprus for years, attracted by the climate, beautiful scenery and wealth of cultural links with home. Following EU entry in May 2004, the island has also turned into a popular destination for property buyers. Most are looking for holiday or retirement homes for themselves at prices substantially below the equivalent spots in Mallorca, the Costa del Sol or the Cote d’Azur. The island is also increasingly being pitched as an attractive place for Fly to Let investments, and there is a building boom going on along much of the coast. Property prices have been rising - although not by as much as some agents claim. The BuySell Home Price Index, based on actual transactions, found a 7.2% increase in 2004 and a modest 2.5% last year. Gross rental yields can be as high as 7-8%, but look likely to fall back. There is some cause for concern for the future,not just because of the sheer scale of the building but also because, as in Bulgaria,many of those buying into new developments have been investors rather than end-users.(All this concerns the Republic of Cyprus (ie the Greek controlled two thirds of the island). If you are interested in the Turkish occupied area, go to the Northern Cyprus page)

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