English is widely spoken in Cyprus and they even drive on the 'correct' side of the road! Other than these obvious attractions, though, what else does the southern two-thirds of Cyprus offer property investors? "Property prices in Cyprus are still low," says Susan Keane of property agency Greenfield Worldwide. "Though, at the same time, the island is rapidly catching up with prices in more established retirement hotspots such as France and Spain." She continues: "Stamp duty is 0.15 per cent for properties worth up to about £130,000, and 0.2 per cent on more expensive homes," explains Keane. "This is compared with 1 to 4 per cent in Britain."

It is not quite a case of walking into the island's property market without encountering any fees, though. "There may be property transfer fees of 3 per cent of the first £65,000 or so," Keane admits. "This rises to 5 per cent on homes worth between £65,000 and £130,000, and 8 per cent on those valued at more than £130,000." However, other more encouraging factors may soften this blow for many considering where in the world to invest their cash. Cyprus is classed 26th out of 176 counties in terms of tourism making an important contribution to GDP. This is an encouraging ratio for buy-to-let investors. In the last five years the actual percentage made up by tourism in the overall Cypriot economy had reduced to some 13 per cent, and has been overtaken by the real estate sector. This trend is also encouraging as the finite supply of land available for development will eventually mean those looking to enter the Cyriot property market will have to pay a premium to do so. "The major factor affecting the current Cypriot market is the adoption of the Euro," property website Living Cyprus points out. "This is good for those already using the Euro, as it simplifies the buying process and makes it easier to compare prices. It also has a stabilising effect on the economy."

Cyprus is likely to benefit from similarly positive effects experienced by countries which have previously entered the single european currency and, in addition, it already benefits from a large number of european budget flight operators such as Easyjet bringing increased visitor numbers to the country. The numerous sandy beaches, stunning scenery, friendly locals and over 300 days of sunshine annually make this a holiday destination that will keep its appeal into the future and is why investors may choose Cyprus over rival emerging destinations.

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Article published 29 April 2008