Assetz® News - Cyprus provides another island in the sun

Cyprus provides another island in the sun

19th December 2008 |

For those who are keen on overseas property investment, the idea of buying on an island in the midst of a deep blue sea, with fine beaches and regular sunshine is likely to appeal strongly. Locations like Cape Verde and Cyprus are good examples of where this is possible, with the latter now adding more.

As if one sun-blessed island was not enough, a smaller artificial island is being built just off the coastline by Limassol's Port, Aristo Developers have revealed.

The firm has noted that the island will be constructed as part of the redevelopment of the town's marina, which it states is one of four across the country for which the government of Cyprus has granted permission for redevelopment, with the aim being to extend the tourist season. In the Limassol case, the new island will provide berths for 600 boats along with entertainment facilities and property, in addition to the 400 on the mainland side. The project is due to be finished in 2013.

With other developments planned for Larnaca, Ayia Napa and Paphos, the potential for attracting more tourism is considerable, remarked the UK sales director of Aristo Martin Pearce. Describing the scale of the projects as "quite amazing", he commented: "As a company we are excited to see these projects get under way and the feeling in Cyprus is that it will not only create more jobs in the areas mentioned but will also appeal to a different kind of visitor."

Indeed, the firm noted, this is exactly what the Cypriot government is hoping for, with minister of commerce Antonis Paschalides stating: "Our vision is for maritime tourism to become a predominant source of revenue and the backbone of the island's development effort".

Those looking to invest in holiday property may therefore find they can enjoy good returns on rental stock in towns that have new marina developments taking place, particularly if these are located near the waterfronts in question.

There may be other ways in which the Cyprus property market is in for a boost as well. In an article on places to which Britons may wish to retire, Shelter Offshore has recommended the country as the leading place to go. Many of the reasons are ones that investors will be familiar with, such as the climate, good standard of living and cheaper prices than last year due to the inevitable effects of the world economic situation.

If a growing number of British expats do head to Cyprus - adding the considerable population which already exists - the benefits could be twofold. Firstly, the increased demand this would be a manifestation of could help drive prices upwards, or at least hold back any decline, which will be useful to investors once they have purchased their properties. In addition to this, a growing reputation as a Anglo-friendly place and also a country to which some will come to visit relatives could also help increase visitor numbers. This could then raise demand for accommodation that rental property will help to meet.

So while the Cypriot property market, like most others, is not experiencing plain sailing just now, it may be able to navigate the choppy waters better than many others and allow more investors the chance of a successful voyage.