Cyprus’ accession to the European Union on May 1st 2004 provides an excellent opportunity for superior returns in the property market and here’s why:

• EU membership 1 May 04 and resultant macro economic boost.
  
• Latest European Commission economic forecasts: 
• GDP growth of 3.9% (2005) and 4.2% (2006)
  
  
• 2.4% inflation
  
• 4% unemployment
  
• Fiscal deficit below 3% by end of 2005
  
• "Over the last three years demand for property has increased by an average of 15% to 20% per annum. This will increase with EU membership as people from the landlocked central European countries, which are also destined to become member states, are expected to look for second homes on the island" (source: FT World Report)
  
• 21.5% increase in population in 2003 (BA “Business Life” October 2004)
  
• A falling interest rate environment. Central Bank of Cyprus base rate is 4.25% whilst the European Central Bank (ECB) rate is only 2%. Interest rates have to converge for possible Euro entry in 2007.
  
• A potential devaluation of the Cypriot Pound prior to Euro entry in 2007, possibly adding up to 15% in sterling value.
  
  N.B.  If you are paying the standard local developer staged payments throughout the build for an "Off Plan" property, you could lose up to 15% in sterling terms on devaluation.  Our payment structure is designed to minimise this risk and indeed profit from it.  See Finance and Law page.
  
• The law restricting foreign ownership of property to just one per person, is to be lifted post 1 May 04 after a transitional period with the resultant boost to demand from large investors overseas.
  
• The island has a world demand for property, including from a growing and affluent Russia and former Soviet states. There is also a large investor demand from Greek Cypriots living in the UK and US.
  
• Highly educated, English speaking and low cost workforce will attract flows of capital from within the EU and other markets.
  
• 60,000 British ex-pats provide an attractive community for UK retirees and a dynamic demand for quality property in quality areas.
  
• The weather, tourism and British nature of the island appeal to many affluent buyers. As English is spoken widely and is the second language, the appeal is international and not just confined to the UK.
  
• Potential re-unification with the Turkish Cypriot north. Worth an estimated Euro600m in aid from the EU. Economists estimate growth rates of 6% per annum (source: FT World report) The multiplier effect from such an injection of funds will provide a massive overall increase in prosperity.