In 2005 Cyprus was named one of the top five property investment hotspots in the world. The attractions of the third largest island in the Mediterranean Sea for both visitors and property investors alike are linked to the fact that Cyprus is blessed with a perfect climate that consists of year round fine weather ranging from temperate or cool but sunny in the winter to hot and sweltering in the summer.

On 1st May 2004 the Republic of Cyprus became a full member of the European Union and it is poised on the brink of joining the European Exchange Rate Mechanism within the next two years. These facts have resulted in the property sector in Cyprus receiving an intensification of interest, however there’s a great deal more to excite property investors examining this European hotspot.

The economy of Cyprus is robust and prosperous, it is built mainly on tourism and the financial services sector - however construction also plays a strong role in maintaining the health of the economy. Cyprus has many natural and economic attractions that made the island one of the top five real estate investment hotspots for 2005 and also ensured growth in the property sector hit 20% again as it has annually for the past 5 years.

With mild winters that bring welcome rainfall to the island, Cyprus manages to remain green and lush throughout the winter, spring and early summer. This ensures the island remains beautiful. As the strength of the summer sun intensifies so the numbers of tourists to the island increases and from May to October the many daily cheap flights to and from Cyprus from the UK and mainland Europe bring in thousands of visitors.

These visitors are not just attracted to the long sandy beaches, fantastic tourist facilities and amenities, stunning Troodos Mountain Range, warm waters of the Med and the heat of the sun, they come to view the historical remains and ruins that Cyprus has in abundance.

The ancient island of Cyprus is the birth place of the goddess of love and beauty Aphrodite, and its history dates back to ceramic Neolithic times. Throughout its long history and because of the island’s strategic importance lying between Turkey, Syria, Egypt, Israel and Palestine it has been fought over and invaded and depending on whichever ruler was in power at the time it has either prospered or suffered at their hands. Because of its rich and diverse history, the island is literally covered with sites of intense historical interest and this is yet another natural reason for the island’s attraction.
In terms of the economic attractions of the island for property investors - the tourists demand rental apartment and villa accommodation for a minimum of six months of the year and the tourist market in Cyprus is fast growing meaning that annual demand is increasing. Furthermore, the island attracts many retirees particularly from the UK because pension income in Cyprus is only taxed at 5% - this makes for a strong demand for resale properties and also long term rental properties. Property prices have been increasing annually in Cyprus at a rate of around 20% for the past 5 years and yet base property prices in Cyprus are still far below those asked for similar properties in the other sunshine destination favorites such as Spain and Portugal.

As a country the Republic of Cyprus is politically and economically stable. It is a first world country with fantastic infrastructure, superior education and healthcare facilities, the cost of living is affordable and the country is a free market economy.