Cyprus Property Investment - InvestinCyprus.com

The top 10 countries of most interest to foreign property investors in 2008 have been revealed in a survey conducted by property investment magazine, Jet-to-Let.

In order to provide an up-to-date snapshot of investor intentions in 2008, Jet-to-Let magazine surveyed 1000 new readers who recently subscribed to their free quarterly investment magazine. The results, which provide an interesting comparison with a similar survey conducted last year, show that investor interest is continuing to shift away from the UK buy-to-let market and towards foreign investment opportunities.

Over 50% of investors said they wish to invest in foreign property in the next 24 months, with 35.8% keen to invest in the next 12 months. The number one country for investors was found to be Cyprus, which is unchanged from 2007, with France and Spain ranked second and third. There were three new entrants this year – Italy, ranked at seven, the United Arab Emirates at eight and Brazil, which came in at tenth place.

Dominic Farrell, editor of Jet-to-Let magazine and author of the bestselling property investment book, The Jet to Let Bible, says he’s not surprised that Cyprus scored the top slot in the survey. “The adoption of the Euro on 1st January 2008, the interest rate cut, oil and gas finds offshore and low taxes continue to make Cyprus very attractive for investors and homebuyers alike,” he says.

“France and Spain will always be in the top three for UK and Irish buyers, but the relegation of Spain to number three reflects the change in market conditions and an erosion of confidence following the recent property market scandals, principally in Marbella,” Dominic explains.

Bulgaria, Poland and Portugal all notably dropped out of the 2008 top 10 league, after being featured in last year’s ratings. According to Dominic, “This reflects the ongoing changes in their respective property markets and the perception by investors that there are better opportunities elsewhere.”

Overall, the survey highlights the fact that interest in foreign investment opportunities is still going strong, helped in part by the inflated housing market in the UK and the small returns on offer here, compared to good returns in other countries.

Summing up the current choices of property investors, Dominic says, “We have seen a significant increase in investing in overseas property since the beginning of 2008, which reflects an ongoing ‘substitution’ away from UK, Irish and US property, as well as equities and other financial products. A well-selected, cashflow-positive property in a country with a sound legal framework and economy will always beat alternative investments hands down.”

The Jet-to-Let 2008 top 10 survey results are:

1.Cyprus
2.France
3.Spain
4.Germany
5.USA
6.Morocco
7.Italy
8.United Arab Emirates
9.Turkey
10.Brazil

The top 10 in 2007 were:

1.Cyprus
2.Spain
3.France
4.Morocco
5.Portugal
6.Bulgaria
7.USA
8.Germany
9.Turkey
10.Poland

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Friday, May 16

Bank of Cyprus says unscathed by global crunch

by InvestinCyprus.com on Fri 16 May 2008 10:13 BST

Bank of Cyprus said on Wednesday it was unscathed by the global credit crunch, but said it had no immediate plans to expand into new markets.

The Bank, Cyprus's largest lender, posted a 55 percent increase in its 2007 group net profit to 485 million euros and restated its profit guidance for 2008 to 540 million euros, an 11 percent increase over 2007. It is scheduled to release its first-quarter results on May 28.

After a year which saw it launch full banking activities in Russia and clinch a deal to acquire a bank in Ukraine, the bank told shareholders on Wednesday expansion into additional new markets was not foreseen in the near future.

"We expect 2008 to be a year of entrenchment in (existing) new markets, further expansion of our network in Greece and an increase in market shares in Greece and Cyprus," outgoing chairman Eleftherios Ioannou said.

"Although expansion into new markets is not among our immediate plans we are looking at conditions in countries of an interest to us through the presence of representative offices so when we decide to proceed we know the conditions on the ground," he told shareholders at its annual general meeting.

Chief Executive Andreas Eliades said the bank was not exposed to risks from the American sub prime crisis, which has had a domino effect throughout the global financial sector.

"The Bank possibly has the most robust liquidity in the Greek and Cypriot markets because the main source of finance are its client deposits, which are increasing," Eliades said.

Board members elected local real estate businessman Theodoros Aristodemou as its new chairman. Ioannou stepped down after reaching retirement age.

Source: Reuters

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Saturday, May 3

Expats in Cyprus

by InvestinCyprus.com on Sat 03 May 2008 13:36 BST

According to Gulf Weekly thousands of expatriates are enjoying the financial benefits afforded to foreign nationals who take up permanent residence in Cyprus. Lower costs of living, favourable tax regime and a warm, sunny climate have all contributed to the island’s success story.

The publication also highlighted that housing costs are playing a powerful role in helping UK nationals to decide where to relocate. The price of a house in Cyprus is much lower than that of a comparable property in a place such as Spain or France and the island is currently benefiting from a prospering economy.

The report concluded that “Cyprus [is] firmly in the top slot for Britons seeking a more attractive destination in retirement”.

The Telegraph also recently highlighted the appeal that Cyprus has for foreign nationals and property investors, citing the recent change from pounds to euros, favourable interest rates and rising house prices.

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Thursday, May 1

Cyprus property prices record strong first quarter rise in 2008

by InvestinCyprus.com on Thu 01 May 2008 10:34 BST

Property prices in Cyprus have recorded a 3.3% increase in the first quarter of 2008, according to the BuySell Home Price Index. This takes the year-on-year increase to 18.6%.

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