Cyprus sails through credit crunch

Contrary to the sales downturn being experienced by many overseas countries, Cyprus’ property market has remained buoyant, ‘cashing in’ on investors who have been turning away from the less attractive / weak markets and returning to the ‘safer’ and established areas in the Mediterranean. Whilst UK buyers continue to purchase holiday and retirement homes or simply an ‘escape route’ from the economic and climatic gloom in the UK, investors are looking to off-set stock/share losses with an option of steady growth and tangible assets.

Such is the on-going demand that Cybarco Plc has been obliged to release the final phase of its award winning Amathusa Coastal Heights development – Heraclion Apartments - two years ahead of schedule.

Since its official release a month ago, already 59% of the 86 one, two and three bed apartments have been sold or reserved, a figure that ‘goes against the grain’ if recent overseas property reviews are to be believed.

Jonathan Salsbury, Manager, Cybarco UK said, ‘It is extremely encouraging in today’s economic climate that the British public is still keen to purchase their dream home or invest in bricks and mortar overseas. Of course there are developments and countries where prices will be lower, but what we are witnessing here is a conscious choice of quality build, proven track record, lifestyle and belief in sustainable growth over price.’

Amathusa Coastal Heights, a ten minute drive from Limassol – Cyprus’ ‘new found’ St Tropez – is a master-planned site of 248 residential units, including apartments, villas and terraced houses. Overlooking the Med, the properties have been designed to offer optimised space, a secure (gated) environment with highly landscaped features, walkways and common parts. Only 50 metres from Limassol’s blue flag beach, Amathusa Coastal Heights is a prestigious project in an exceptional location.

Many might question whether developments such as Amathusa can sustain the capital appreciation they have witnessed – 40% over the last 5 years - or whether the Cypriot market has now peaked. It is true to say that prices on the Island are much higher than they were 5/10 years ago and as such are now settling to a more sustainable, mature market rate increase of around 10% per year. After all, as an island there are limited development opportunities and the authorities are strict on build density, quality of build/facilities as well as retaining the country’s cultural heritage.

Needless to say, Cyprus has a long (and peaceful) relationship with the UK, which shows no sign of abating. Be it the weather, the fact that we drive on the same side of the road or the general ‘joie de vivre’, Brits have been flocking to this Mediterranean island for decades. With 3 million Brits hoping to buy overseas in the next 2 years (Source: Cater Allen Private Bank, part of Banco Santander), it is a given that demand for property in Cyprus will remain high and prices will reap the benefit. The fact that developments such as Amathusa offer good year-round rental returns and Cyprus has a favourable tax system only adds to the investment appeal of the island.

But it is not just from Blighty that demand is coming. Russian and Scandinavian buyers are on the increase, primarily for sound economic sense.

Limassol itself has seen a re-juvenation over the last few years. The Island would hold its hands up to saying that, in the past, the second city could have been classified as one that would attract the ‘clubbing’ scene, but an influx of international companies establishing their European ‘hub’ in the coastal resort has necessitated an up-grade in facilities, leisure activities and accommodation. Subsequently it has attracted international retailers of the highest spec as well as restaurateurs and leisure operators, leading to a growing reputation as an ‘international hot spot’ in the Med.

It is not without reason that a multi-million euro marina is being developed in the locality, which will inevitably impact on property prices.

Amathusa and Limassol both have a strong future, in terms of quality, lifestyle and economic prosperity.

Prices:

One bed apartments from €246,000
Two bed apartments from €370,000
Three bed apartments from €465,000

Project Completion date: March 2010

For more information, visit cybarco.com