Since December 2007, the Euro currency has reached some record highs against the US Dollar and the Pound Sterling and inevitably the European property market, including Cyprus, has been affected. On December 19 2007, the GBP was worth almost Euro 1.40. Three months later, it has gone down to Euro 1.28. This is a real reduction of 9.4%, which means simply that property within the Euro zone countries has become 9.4% more expensive for the British buyer, all other factors being equal.
However, selling a property in Cyprus now and sending the funds back to the UK as sterling would have resulted in the opposite, you would have gained 9.4% in extra profit. The savvy investors who bought in Cyprus have another reason to be happy with their investment. Other reasons to invest in Cyprus, it is easy and all monies can be repatriated. The Euro could be overtaking the dollar as the world’s major currency and become stronger in the future.
The Cyprus market has felt the impact of weak sterling because Britons are still by far the number one buyers on the island. However, in March the Royal Institute of Chartered Surveyors produced their 2007 European Housing Review, which reported an almost universal downturn in European housing markets - except for Cyprus where it has actually accelerated. (Source of proof)
Why is this? In part, thanks to the country's adoption of the Euro at the beginning of this year, which has increased investor confidence. In addition, developers across the island, along with private vendors, have recognized that to survive in such a market, they must cut costs, reduce profits & make prices more affordable.
Did they have a choice? Not really, most realised that this was the only way the market could survive, by stabilising and weathering the economic storm, so that it can emerge stronger in the future. According to research by www.bestcyprusproperties.com, which compared prices in Autumn 2007 with current prices, it's easy to see that this had the desired effect. Prices have become stable and in some cases have decreased. As a result, the Cyprus Property Market is more realistic to the foreign investor, leaving room for growth & capital appreciation in the future. Cyprus property continues to be a good investment and a real possibility for people who long to relocate for a different lifestyle.
The fact that English is widely spoken and understood, driving is on the left side of the road coupled with low personal taxation are just some of the reason why one should really explore the benefits of purchasing a property either as an investment or as a home in Cyprus.
Henry B. Nathan is a Florida Realtor at United Realty Group Inc.
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