Northern Cyprus Vs Southern Cyprus

Since 1974, the island of Cyprus has been divided in two by the “Green Line”, which separates the Greek-ruled Republic of Cyprus in the south from the Turkish-ruled north of the island.

The north, which accounts for 37% of the island, is an illegal state recognised only by Turkey, and although talks to resolve the situation are occasionally held, Cyprus remains a divided island. The north is just starting to open up to more intrepid foreign property investors. However, anyone considering investing here should do thorough research, make sure they understand how the system works and take independent legal advice to avoid any issues with illegal land ownership.

Republic of Cyprus (South Cyprus)

No such problems exist in the South, where the majority of British people buy their property in Cyprus. By far the most popular place is Paphos, where 60% of British property buyers in Cyprus invest, followed by Limassol with 20%.
In addition to the benefits of good-value properties in a beautiful, sunny location, foreign buyers are tempted by the low cost of living, low crime rate, warmth of the Cypriot people and relaxed way of life.

Buying a home in Cyprus has the further benefits that English is the second language, spoken by about 80% of Cypriots, the property system is similar to that in the UK - and you can still drive on the left!

Although Cyprus is a relatively new contender among the markets for overseas property ownerships, the figures are steadily rising: 4,000 Britons bought property in Cyprus in 2003, an increase of 25% on 2002. 60,000 Britons in total own properties on the island, making it the most popular place after Spain and France for British people seeking a home in the sun.

Traditionally, retirees have been attracted to buying properties and settling in Cyprus as a treaty means that they pay 4.8% tax on their pensions and nothing in the UK. But now Cyprus is becoming a growing golf destination and is generally seeing a younger generation of holiday home buyers choosing to invest there.

Property Prices in Cyprus

Cyprus property prices have never experienced a downturn and since entering the EU in 2004 and seeing the opening up of its airspace, the economy is booming and house prices in Cyprus are rising. Although the Government still controls the amount of property for sale in Cyprus that can be legally owned by non-resident EU citizens, its popularity as a destination continues to grow.

The restrictions on ownership of Cyprus property will soon be removed, which – combined with increasing demand for properties – will push up prices even further. Currently, house prices in the South of Cyprus represent good value for money – approximately 20% lower than equivalent properties in Portugal, 30% lower than those in Spain and 50% lower than those in Italy and France. And although the Cyprus property market tends to mirror that of the UK, cooling down in late 2004/early 2005, prices are predicted to rise considerably in the coming few years.

Properties in beach areas of Larnaca, Limassol and Lamagusta are increasing by about 30% pa on average. Inland areas are seeing property values increase by at least 20%. Paphos is also seeing sharp rises. Villas in Cyprus are a good investment as they are in high demand among holidaymakers and you can rent them out through tour operators for about seven months of the year – which would bring in £10,000-£15,000 income from a three-bedroom villa.

As a general guide to property prices in Cyprus, you will pay about £50,000 for a one-bedroom apartment in a block with communal swimming pools. Service charges are usually around £200-£250 a year. Houses with two bedrooms start at around £100,000, but you can pay £1m plus for a luxury, detached villa in a prime location such as Paphos. Smaller villas in the area start at £300,000.

As an indication of average new-build property prices in Cyprus :

The average price in Paphos is 1,200 Cypriot pounds (CYP) per m2, which is approx. £1,450.
In Limassol, the average is 2,000 CYP/m2 (£2,400).
In Larnaca, the average is 1,500 CYP/m2 (£1,800)
In mountain resorts, 1,000 CYP/m2 (£1,200).

For resale properties, the average prices in 2005 were:
Nicosia 700 - 1,200 CYP/m2 – approx. £850-£1,450
Limassol 650 - 2,500 CYP/m2 - £780-£3,010
Paphos 700 - 3,200 CYP/m2 - £850-£3,850
Larnaca 550 - 2,000 CYP/m2 – £660-£2,400.

There is a year round short-let property market and you should expect to receive an annual return on your investment of between 4% and 5%. Long-term rental agreements are usually for six months or a year.

Cyprus Climate

Typically Mediterranean, with very hot, dry summers from May to September during which inland temperatures can soar above 40C, though the coast and higher altitudes are slightly cooler. Winters, from November to March, see a small amount of rainfall and temperatures are usually between 5-15C. The high regions see snow in January and February, and there are ski resorts in the Troodos Mountains which are busy in late winter and early spring.

Spring and autumn are warm and pleasant, rather like a pleasant late summer in the UK. On average there are about 300 days of sunshine a year with an average temperature of 21C.

Cyprus Geography

Cyprus is the third largest island in the Mediterranean Sea and the point where Europe meets Africa and Asia, 105km west of Syria and 380km north of Egypt. It’s 240km from East to West, and 96km from North to South with a population of 750,000.

The capital, and only major inland city, is Nicosia. On the south coast is the island’s second biggest city Limassol, Larnaca (home of the international airport) and Paphos, the ancient capital in Roman times (and the location of Cyprus’ second airport).

As well as some of Europe’s cleanest beaches, there are the Troodos Mountains which consume most of the South West of the country, citrus and olive groves and pine forests.

Getting to Cyprus

Cyprus has two international airports: Larnaca, the biggest, situated in the East and Paphos in the West. Flight time from the UK is approx. 4hr30.
There are currently no budget airline routes from the UK to Cyprus. British Airways (www.ba.com) flies to Larnaca and Paphos. Cyprus Airways (www.cyprusair.com.cy) also has scheduled flights from London, Birmingham and Manchester to Larnaca and Paphos.

There are also charter flights available from as little as £99 return (see www.charterflights.co.uk). See also Air 2000 (www.air2000.com), which operates from Birmingham, Cardiff, Glasgow, London Gatwick, London Stansted, Manchester and Newcastle to Larnaca and Paphos.

First Choice Airways (www.firstchoice.co.uk) operate from and to Gatwick, Birmingham, Manchester, Newcastle, Glasgow, Cardiff, East Midlands and Stansted.