Cyprus Property bucks the Credit Crunch Trend

14 October 2008

There can be no doubt, the credit crunch represents a global economic phenomenon; as reflected in the downturn in the property markets of many European and North American countries. It may seem strange then that Cyprus remains relatively unaffected - with property prices running against the grain of recession.

Cyprus is one of Europe’s most popular holiday locations. Indeed, many visitors love Cyprus so much that they return home only to up-root and relocate there permanently.

It is easy to see why when you consider that it is one of the sunniest locations in Europe. That is not to say that the warm climate is the only appeal, far from it, Cyprus also boasts one of Europe’s lowest crime rates - making it a very attractive, safe place to holiday with the entire family. It is also a very well developed country, with a sound legal system, investment from many multinational companies and regular direct flights from most major European cities.

It is very telling that Cyprus is one of only three countries in the world to be experiencing positive capital appreciation on properties. Indeed, from January to August 2008 the average rate of growth was 8%. This is in stark contrast to countries on the continent, some of which have seen property prices fall by as much as 40%.

Louise Hoade, Director of Principal International says,
“Cyprus as well as these excellent reports have announced their official tourism arrivals for the period up to the end of August this year. These figures indicate in comparison to the same period in 2007 that these figures have again bucked the trend and the tourism arrivals figures have increased.”

Simple, easy to understand, non-recourse mortgages of up to 80% LTV are also available, facilitating property purchases.

This bucks the trend of the credit crunch, which has made it almost impossible to get mortgages in most other countries. The mortgages are available in most currencies, for a period of up to 30 years with the option of 2 years grace from installments - best of all interest rates may be as low as 4%.

Property ownership is safe and secure with a state of the art land registry system. This ensures that all sales and purchases are recorded and register, giving investors the confidence to buy property with reduced risk. The system also ensures a faster, more efficient process.

Owning property in Cyprus has proved attractive to people from all over the world, including but not limited to: England, Ireland, Scotland, Russia, Ukraine, Scandinavia and the United Arab Emirates. The diversity of people investing in Cyprus provides a level of security; it ensures that Cyprus’s property market is not detrimentally tied to the fortunes of any other national economy.

Cyprus is not a country to rest on its laurels. To further enhance its economic success it is investing heavily in improving its infrastructure. New luxury marinas, golf projects and new roads are all planned.

Annual capital growth and readily available credit facilities really do prove that it is still possible to reap returns on property investments during the credit crunch.

Whether it is a buy-to-let or a turn-around investment property that you are looking for, it would be detrimental to overlook Cyprus.

For more details on Cyprus Property then please contact Principal International on 0800 038 0000 or via https://www.principalinternational.co.uk