Mid to long term investors in Cyprus property are set to reap long term benefits of a growing tourism industry on the island. With old fashioned restrictive rules on foreign ownership having been lifted, a surge of foreign interest and corresponding market buoyancy is now characteristic of the Republic.

While the Cyprus government is currently concentrating on greatly improving the standards of its tourist infrastructure, investors are set to see vast improvements and additions to tourist amenities on the island, making for a strong and growing investment arena in which to operate. Tourist numbers in August 2007 were up 8.3% on the previous year and this figure is expected to be greater as the island continues its growth and demand is high within the quality holiday rental market.

With property prices still approximately 30% lower than in comparable Mediterranean European destinations, Cyprus is an obvious choice for investors seeking affordable prices, high growth figures and a strong tourist market in which to resell or employ their longer term buy-to-let strategies.

Timescale

Average construction time on Golden Land Developers Cyprus projects, from project sales release to completion of construction, is approximately 12/18 months. Mid to long term investors look to hold onto their units after construction, normally for at least 24 months from initial reservation, either to rent it out and/or benefit from capital appreciation upon eventual resale. Many long term investors wish to generate significant and reliable rental income over a period of time as sustained rental returns are their main focus, followed by capital appreciation over time.

Capital appreciation is expected to continue to perform exceptionally well over the next 5 years, particularly in view of the current drive for increased tourism by 2010, and the longer investors are able to leave capital in their purchase, the higher their potential returns will be. Tourist numbers are rising and the resulting strength in the buy-to-let market allows investors to reap in solid capital growth from their properties, all the while supplementing this income with high rental yields in key tourist resort areas.

Golden Land Developers strongly recommends consulting with an Golden Land advisor to discuss your particular mid to long-term investment strategy in Cyprus, to ensure your chosen location best suits your needs.

Level of Complexity

In the case of off-plan purchase, full payment for the property needs to be completed at various stages of construction, prior to final completion of the purchase.

For mid to long term investors, all costs will be applicable, of around 10% of the purchase price while ongoing costs such as maintenance, community fees and utility bills will also need to be factored into the strategy finance plan. Bear in mind it's advisable to open a bank account in Cyprus in order to pay in local currency (