Residential property prices in Cyprus broke another record in November as prices rose by 21% year on year, according to the BuySell Home Price Index. This is the highest year-on-year increase recorded by the index, which began in 2004.

The BuySell Home Price Index rose for an eleventh consecutive month to 141.69, recording a significant monthly increase of 2.5%, compared with a month-on-month increase of 3.7% in October. In the year to date, prices were up by 21.5%, compared with a more modest increase of 5.9% in 2006. The increase brought the Average Home Price in Cyprus to CYP 110,390 (EUR 188,613).

Source: Cyprus Mail

Award winning low fares airline flymonarch.com is to launch scheduled flights from Larnaka to London Gatwick this March with up to four schedule flights a week.

According to a press release issued by Hermes Airports Ltd, the company which has taken over Larnaka and Pafos airports, the new service from Larnaka to London Gatwick will commence on Wednesday 19 March 2008 with direct flights operating up to four times per week on Mondays, Wednesdays, Thursdays and Saturdays. Fares starting from EUR75 one way excluding taxes and charges (EUR150 return).

Commenting on the introduction of this new service, managing director of monarch.co.uk, Liz Savage said that “following on from the announcement to launch flights to Manchester last month we are delighted to be adding flights from Cyprus to London Gatwick as well, meaning we will operate up to 30 flights a week between Cyprus and the UK this summer with 130,000 seats available.”

Bob Manning, CEO of Hermes Airports Ltd said that “we are delighted to welcome this new service by Flymonarch.com. These new flights will offer an additional choice for British independent travellers to fly to Cyprus, and for Cypriot business travellers, tourists and students for their direct flights to London and onward connections.”

Just one month ago the low fares airline flymonarch.com announced its decision to launch flights from Cyprus to Manchester.  

Source: Financial Mirror

History was made this week in Cyprus when the central bank met to set interest rates.

Not because it was for the first time, but because it was for the last. For the record, governor Athanasios Orphanides said the three rates set, the key refinancing rate, the Lombard rate and the overnight deposit facility, would all stay as they were, the Cyprus Mail reports.

Mr Orphanides said any changes would have "no marked difference" and the monetary policy committee backed this view. Thus the curtain starts to fall on the Cypriot Pound.

New Year's Day will be a momentous one. It often is somewhere in the European Union, with 2007 seeing Bulgaria and Romania expanding the club to 27 members. 2008 will see the number of eurozone members in the union climb to 15, with Cyprus joining fellow Mediterranean island nation Malta.

The Cypriot central bank is on record as stating that this event is as momentous as it gets, saying: "Cyprus is preparing for one of the most important changes in its history." This is undoubtedly true in economic terms at least, for the central bank statement went on to add that this brought the country into an economic zone which is home to 310 million people.

While Mr Orphanides and his colleagues seek new employment, property investors should be very busy in the country, according to worldwide real estate firm Property Abroad. Director Les Calvert said that the country was already hugely popular, stating: "Cyprus has been increasing in popularity over the last year and more people are now making specific enquiries for property in Cyprus."

Part of this, he noted, was because of a financial situation which was in fact about to change: "There are still a few properties around that are free of VAT out there so people are jumping on and trying to snap up properties where they can."

Yet Mr Calvert was convinced that the country's property scene would benefit from the euro, predicting: "When the euro comes in it will make the property market a lot more open and I expect the market to rise quite healthily."

He advised that investors would be able to make good use of "excellent" foreign currency mortgages provided by Swiss and other banks, though these were "more advantageous" for those living or at least gaining income from overseas.

Cyprus will await the new year with interest, preparing for an economic and political future tied into the heart of Europe. For investors looking to sink their capital into property in the eurozone, a new opportunity awaits.

Source: The Move Channel

Increased interest in Cypriot property listed on TheMoveChannel.com has pushed the holiday hotspot up 3 places to break into the Top of the Props Top 5!  Here we investigate just why there is so much interest in Cypriot property at present...

With its unique blend of climate, culture and clubbing, Cyprus is one of the most popular tourist destinations in the Mediterranean.  From the stillness of Ruins of Salamis to the commotion of the Ayia Napa night clubs, the Mediterranean’s 3rd largest island throngs with visitors every year, drawn to its many varied attractions.

With Euro membership just around the corner and property prices rising month-on-month this year, foreign interest in Cypriot property is showing no signs of cooling, as reflected in the movements in this month’s Top of the Props chart.  An increase in the number of enquiries about Cypriot properties listed on TheMoveChannel.com over the last month has given Cyprus a leg up 3 places to break into the exclusive Top the Props Top 5.

The Top of the Props chart reflects the share of overall monthly enquiries to TheMoveChannel.com each country receives.

Airline investment to bump up tourist numbers

With its wealth of heritage sites, perfect climate, blue flag beaches and buzzing nightlife, Cyprus attracts over 2.4 m tourists annually.  This crucial industry brings in more than £1.3 billion a year, contributing around 15% of the island’s GDP.

The issue of air travel is critical for further tourist development in Cyprus.  Panos Englezos, Chairman of the Cyprus Tourism Organisation (CTO), recently stated that new budget airline routes have resulted in a “significant increase of arrivals from Greece, Russia and Scandinavia.”  Mr Englezos has affirmed his commitment to increasing the number of budget carriers operating routes to the island.

In June, Cypriot President Tassos Papadopoulos promised to back the further expansion of the country’s tourism industry.  Speaking at the opening ceremony of the Hoteliers’ Pancyprian General Assembly in Nicosia, he said, “The government, evaluating correctly the decisive significance of tourism to the economic development of the island and the people’s welfare, maintains in its priority, interests and aims, the continued upgrading of this key sector.”  The upgrading of Larnaca and Paphos airports is due to be completed by the end of 2009.

Euro announcement sparks investor interest

With English widely spoken, a legal system based on English law, a stable economy and low mortgage rates, Cyprus is a popular place for Britons to own homes abroad.  According to the Cypriot Land Registry, 12,000 of us have already made the move and now own homes on island.

George Lacey of Lacey & Co. commented: "As prices have risen in Spain and other Mediterranean areas, Cyprus has become increasingly popular, especially with British buyers.  Prices in Cyprus are still very reasonable in comparison to Spain and Portugal, with countryside restoration properties available from around £50.000.  If you throw in the ideal climate, the fact that English is widely spoken and the country's excellent health care system, Cyprus is an ideal place for Brits to buy abroad."

Cyprus is in the middle of a housing boom at present.  According to Financial Mirror calculations, the BuySell Home Price Index has risen on average by 9.3% year-on-year so far this year, compared with 5.9% for the whole of 2006, suggesting Cypriot house price growth is actually accelerating.  Factors cited to explain this trend include July’s EU announcement that Cyprus will adopt the Euro in January 2008, a decrease in local interest rates, a lack of Cypriot housing supply and a rush by investors to beat the imposition of 15% VAT on land purchases from 1 January 2008.

Mark Bodega, Marketing Director at currency specialist HiFX, commented: “Since it was announced that Cyprus would adopt the Euro in January 08, we’ve seen interest in Cyprus almost double.  Our figures show, that whilst the numbers of Brits buying holiday homes in Cyprus has remained relatively static, this increase is largely due to an increase in investors.  It seems that whilst the Cypriot Pound has effectively been fixed against the Euro for the past two years or more, this recent announcement confirms the island’s economic maturity and the promise of a share in the spoils of the recently improved EU-wide growth story.”

However, Simon Tweddle of PropertySecrets.net urged caution, saying “I think over the next year or two we will see prices continue to rise at around 20% per annum, though investors must be careful that they only buy into quality developments and avoid areas that are in danger of becoming oversold, to protect their rental and resale strategy.  Overall the long term prospects for property prices are healthy in Cyprus and the country makes an excellent location for second home buyers.”

Source: The Move Channel

The global house price boom continues in 2007, albeit at a much slower pace and with different set of countries.

A dramatic slowdown has taken place in several countries in Europe, despite an evident rise in the rate of price changes in Cyprus.

House prices in Estonia, 2005 and 2006’s ...   more »