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Cyprus is shifting its tourism policy towards ‘a more affluent traveler’ due to a rising of per-capita incomes, lower borrowing costs and a desire for better quality homes.

Research, carried out by S. Platis Economic Research on behalf of Cybarco, indicates that demand for second homes is rising and that Cyprus is experiencing a fresh input of investment. Airports at Larnaca and Paphos are being upgraded, while the creation of 11 new golf developments and four new marinas are providing more opportunities for its real estate market, said Platon Lanitis, Cybarco’s chairman.

The lifting of restrictions on foreign ownership has also led to increased sales to non-Cypriot residents of £194 million in 2005 and this figure is rising (according to data from Cyprus’ Central Bank).

Cyprus is expected to adopt the Euro in January 2008 and this will have a further impact on rising business development. Meanwhile, chartered flights to the island are set to increase over the next few years.

Latest data from Cybarco on price trends suggests a beach apartment at the lower price of CYP(Cypriot pound) £400 per sqm in 2001 rising to more than CYP£1,000 in 2006 – the equivalent of around 160%. At the exclusive Aphrodite Hills golf resort prices rose from CYP£1,780 per sqm to CYP£3,000 per sqm over five years.

Sales fall in October

Figures from the Buy Sell Home Price Index show that residential property prices in October dropped 0.9% from the September figures. The Cypriot agent believes that this has brought the Average Home Price in Cyprus to CYP £91,625. However, the firm points out that the overall index remains up 6.7% for 2006 to date.

The Buy Sell Home Price Index, which is updated monthly on behalf of Buy Sell Cyprus Real Estate, is also compiled by the independent economic research organization S. Platis Economic Research. The Index depicts the movement of prices at which residential properties are sold in Cyprus and is based on the Buy Sell Cyprus Real Estate database.

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