Property investment > investment

Although foreign property firms have been suggesting the benefits of northern Cyprus as a property investment destination recently, Southern Cyprus remains the preferred destination of visitors the country.

Overseas property investment company Principal International said that many Brits preferred the south of Cyprus even to France and sometimes to Spain when it came to buying homes abroad.

The firm predicts that the number of British investors in the country will double in 2007 thanks to English being widely spoken on the island and tourism numbers growing each year.

Cyprus is a mature property market and offers homes that are still cheaper to buy than in the UK, the firm advised.

It claimed that the island was a favourite with the retirement community due to its low crime, high-quality lifestyle and stable infrastructure, while buying property was "easy" thanks to the land registry rules being broadly similar to those in the UK.

Cyprus was recently named among the top ten most profitable destinations for buy-to-let investment by Assetz, offering total returns on cash invested of 37 per cent.