Low-cost airline announces route to Cyprus

Monarch is to start scheduled flights from Luton to Cyprus next year as the airline expands its network to the Eastern Mediterranean.

The airline claims the four flights a week from Luton to Larnaca will be the first low-cost scheduled flights to Cyprus from the UK. Flights will start on March 26 with one-way fares starting at £69.99, including taxes and web booking discount. Seats can be booked from next Wednesday on the carrier's website. Flights will operate on Monday, Tuesday, Wednesday and Saturday using Airbus A321 aircraft with 213 seats. Monarch scheduled services managing director Tim Jeans said: "Cyprus Airways and British Airways have operated a high fares cartel to Cyprus for decades which we'll break with our widely available, flexible low fares. "Our new service will be warmly welcomed not just by the growing holiday and overseas property markets in Cyprus, but the 150,000 strong Greek-Cypriot community in London, who've been deprived of choice and low fares until now." "Monarch's onboard service is also perfectly placed to provide an ideal level of service for the four and a half hour flight time, with extra legroom seating, free inflight entertainment - including full length feature films and the provision of hot and cold food all available."

Cyprus has the highest population growth in the EU

Cyprus has the highest population growth rate in the EU, according to “ cyprus in the EU Scale”, published by the Statistical Service CYSTAT in October 2006 and released last week.

The statistics show that the population growth rate in Cyprus in 2005 was 2.6%—much higher than any other EU country. This compares with an EU 25 average of only 0.5%. The second highest growth rate, of 2%, was recorded by Ireland, while the third highest was Spain, at 1.6%Cyprus also scored well in higher education with 29.4% of 15-64 year-olds having tertiary education, compared with an EU average of 21.9%. The highest proportion is in Finland, with 34%, while the lowest is Malta, with 10.9%.

Source: Financial Mirror

Dionyssus Golf View Apartments, Tersefanou, Larnaca - SOLD OUT

Three weeks after launching Dionyssus Golf Villas and Apartments at Tersefanou, Larnaca the 80 apartments have now sold out and there are only 11 of the 26 villas remaining. If you wish to receive details of these villas, which are located on the ridge overlooking the new PGA golf course (completing in 2008), then please call Karon on 0151 482 5675. But make it quick as the prices on the remaining villas will be raised next week.Why was this development so successful?I think there are a number of reasons:

• Location: it is located in one of the 2 main capital growth regions on the island, namely Famagusta District (Paralimni, Protaras) and South Larnaca (Pervolia, Kiti, Tersefanou)• Price: significantly below market value which was recognised by many of our investors. Indeed, one such investor was offered a 1-bedroom apartment in a less favourable position on another site for the price of a 2-bedroom on the Dionyssus Golf View development.• Long completion date: mid 2010 gives your investment plenty of room to grow• Finance package: long mortgage terms and interest-only mortgage payments

• InvestinCyprus.com service: unrivalled investor service which includes sales, re-sales, furniture, lettings and property management all under one roof with the need to speak to only one person – your personal investment consultant.

If you wish to register your interest in any of the developments we presently have available, which can all be found on our website at www.investincyprus.com, or wish to be informed ahead of the crowd when we release new developments, then please give Karon a call on 0151 482 5675.

Cyprus to receive Euro 800 million from the EU

The Cyprus government is expected to receive EUR 800 mn from the EU for the period 2007 – 2013. EUR 400 mn will be used for corporate development, employment, education of human resources and research and development. EUR 212 mn will be used for infrastructure projects, whilst an amount of EUR 162 mn will be used for agricultural development and EUR 20 mn for the fishery sector.These funds will help the government to improve competitiveness, productivity in all economic sectors as well as the improvement of the standard of living of all population classes.

Source: Financial Mirror

Global real estate company opens offices in Paralimni and Protaras

THE WORLD’S biggest and fastest-growing real estate network yesterday announced the opening of its first four offices in Cyprus.

The company’s President and CEO, Tom Kunz, yesterday told the Mail that, “the island is the Mediterranean’s best kept secret. Its geographical location gives it such an advantage and it’s an excellent example of globalisation having increasing demand for properties coming from overseas. I believe Century 21 will facilitate this expansion in providing the platform for bridging into these international markets, providing the utmost in value and support to the new offices in Cyprus. We wish these new offices great success in their operations and we’re proud to welcome them to the Century 21 family.”

The first four offices will be located in Nicosia, Limassol, Protaras and Paralimni, with plans for 21 offices over the next three years.

The company was established in 1971, with a recent US survey finding the brand to be the most recognised name in real estate.

Annual profits in the United States amount to four billion dollars.

Frank Clarke, head of the French division, which was the first set up in Europe, stated: “It’s appropriate that we’re in Cyprus, in a little corner of heaven. There is a strong argument for attracting a lot of people to the island, which has always been a country of change.”Extracted from the Cyprus Mail.Comment: It is interesting to note that this global real estate brand has chosen to launch 50% of its initial offcies in the Paralimni/Protaras growth region, which we at InvestinCyprus.com have targeted as one of the two major areas on the island to invest in.

Cyprus mortgages - 35 year interest only through InvestinCyprus.com

InvestinCyprus.com has been instrumental in liberalising the mortgage market in Cyprus. We are pleased to announce that we have the facility to offer 35 years interest only products to our clients.www.investincyprus.com

Lettings and Property Management

The InvestinCyprus.com Lettings and Property Management (LPM) company is now up and running and the first tenants are coming into the office looking for accommodation in our prime sites. We have also tied in with a large hotel chain which has received enquiries from Sweden for long-term winter lets. Many of our investors have been very successful with their own lettings strategy and in some cases had more tenants generated than property available. We have now set-up the IIC Tenant Pool. If demand exceeds supply due to successful individual marketing campaigns, the tenant or holiday maker is then offered alternative accommodation from the Pool. A lettings fee is then paid by the recipient to the supplier of the tenant and InvestinCyprus.com acts as a (commission free) broker. More on the LPM in future newsletters. This service is exclusive to InvestinCyprus.com investors and homebuyers only.

NEW RELEASE: Dionyssus Golf View, Tersefanou

We launched our new Golf development in Tersefanou to our existing clients over the weekend and had a terrific response.

In outline, the development is a mixed complex of 80 apartments and 26 villas with

• 3 communal pools, gym
  
• tennis court,
  

all located on a ridge overlooking the PGA 18-hole signature golf course backed by the European Golf Federation at Tersefanou in Larnaca District. The golf course will feature:

• a clubhouse and country club multiple restaurantsa retail villageentertainment areaequestrian facilitieshealth spahelipad
  
• tennis courts and sports fields
  

as well as villas selling at over CYP 3000 per m2 (compared to this development at CYP 955 - 1495 per m2). The golf course is due to begin construction next year with a completion date of 2008, well before the completion on the project, even allowing for any delays. The project completes in mid-2010 although the exact date has not been finalised as yet. The rental potential will also be very strong given the proximity to the airport and the draw of the golf course which will extend the rental season through the winter. Deposits are 20% with 80% LTV. For further details contact Kate in the Liverpool office on 0151 482 5526

http://www.investincyprus.com/

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FREE Cyprus property investment seminar 20th November 2006 - London

Dominic Farrell author of bestselling “The Jet-to-Let Bible: the secrets of overseas property investment” and founding editor of “The Jet-to-Let Magazine” will be hosting a FREE seminar Monday 20thth November 2006 in Central London at 7pm examining the case for investing in Cyprus. Now is an ideal time to enter the property market, with property prices rising, sterling at 2 year highs against major currencies and positive news about the economy. He will also highlight the most favourable regions for investment and strong returns. Dominic will also highlight the excellent mortgage products available to InvestinCyprus.com clients, including 100% mortgage finance and interest only payments up to 35 years. The seminar will also look at some of the latest development projects. If you wish to attend please complete the form at: http://www.investincyprus.com/events/property_seminar_application.htm
These events are always full and tickets will be allocated on a first come first served basis and limited to 2 per applicant.

Global interest rates, Eastern Europe and Cyprus property

Another busy, but enjoyable week goes by. Monday we had an evening seminar in Liverpool which was well attended with some investors flying in for the night – a classic “Ryanair effect” I had 2 days in London, on the radio for one of them which I enjoyed immensely and the other spent meeting a major overseas development company which has worldwide interests. Back to Liverpool, Jet-to-Let Magazine design pitch today and off to the Lake District at the weekend for some R&R. Global interest rates The Bank of England left rates on hold at 4.75% and the European Central Bank raised by 25bps to 3.25% which is in-line with market expectations. My view would be that UK rates have further to go – likely 25bps before Christmas and another in the 1st quarter 2007 (based on the latest data), the ECB is likely to have another 25bps in the pipeline, possibly before Christmas and then we will be somewhere near the peak in this cycle and the Fed, well, we may be close or even at the peak presently. For those of us with UK and overseas investments at variable rates this may help you with your planning although as always you are advised to take professional advice on your investments from an authorised person. Cyprus Property Investment We met over 150 investors last week all interested in Cyprus property. Some of these investors were new and others were investing more money into this vibrant and exciting market. You may be interested in the following report by the head of the Land Registry last week: “Property, apartment and detached house prices are expected to increase by seven to 12 per cent in the immediate future, the House Commerce Committee heard yesterday.

According to the head of the Land Registry Department, Andreas Christodoulou, ’From studies that were carried out by the Department, it appears that the value of land will increase when it comes to plots of land, apartments and detached homes, and this is mainly due to the great demand that exists from European citizens’ said Christodoulou.

He stressed that the increase in prices would be within a legal framework and it would be estimated at between seven and 12 per cent, depending on the area.

In some areas the price increase would be higher than in others, he added.” {I think we all know where these are!} Source: Cyprus Mail InvestinCyprus.com We have some of the very best investment opportunities and finance on the island of Cyprus. In addition InvestinCyprus.com has considerable experience in the market and the directors live and invest in the properties themselves. It is always a good question to ask those seeking to sell you property – do you buy these yourself? With sterling at 2 year highs now is an excellent time to invest. We are preparing our latest development which is keenly priced close to the new PGA golf course at Tersefanou – details will be released shortly. Jet-to-Let MagazineThere will be further news on the Cyprus property market in the first edition of the Jet-to-Let Magazine published later this month. In addition we will put the spotlight on 2 other potential investment countries and will take a look at the latest UK property news. Further details and your FREE subscription application can be found at: www.jet-to-let-magazine.com Have a great weekend Best wishes Dominic Farrell

If you wish to discuss your investment requirements with one of our investment consultants then please call: 0151 482 552

Get ready for a property boom

Property, apartment and detached house prices are expected to increase by seven to 12 per cent in the immediate future, the House Commerce Committee heard yesterday.

According to the head of the Land Registry Department, Andreas Christodoulou, Cyprus is the cheapest country in the European Union when it comes to properties, apartments, houses and land. For this reason, he added, many Europeans are interested in coming to Cyprus and investing in land and properties.

“From studies that were carried out by the Department, it appears that the value of land will increase when it comes to plots of land, apartments and detached homes, and this is mainly due to the great demand that exists from European citizens,” said Christodoulou.

He stressed that the increase in prices would be within a legal framework and it would be estimated at between seven and 12 per cent, depending on the area.

In some areas the price increase would be higher than in others, he added.

Source: Cyprus Mail

Jet to Let joy as sterling hits a 2 year high

Sterling hit a two-year high against currencies of major trading partners and a 15-month peak versus the euro, buoyed by expectations the Bank of England would raise interest rates in November, but may be due for a correction if it does not manage to break 1.9040 against the dollar. Recent data showing a record rise in mortgage lending and the BoE minutes showing policymakers are getting more worried about inflation expectations reinforced the rate hike view in a market increasingly driven by yield differentials.

The pound rose to 103.50 on a trade weighted basis, its highest since August 2004. Against the euro it rose to 67.01 pence, its highest since June 2005 and up a quarter percent on the day.Sterling hit a two-week high of $1.9040. The dollar meanwhile hovered around two-week lows against the yen and the euro on Friday after data showed more signs of a slowdown in the U.S. economy, keeping expectations high that interest rates will stay on hold. The Philadelphia Federal Reserve's business activity survey for September showed its first negative reading in over three years, indicating a significant decline in manufacturing in the mid-Atlantic region. The sharp drop in the index provided the first clear sign of the slowing housing market impacting the broader economy. We reiterate that US growth related data would come back into the forefront. Two reasons explain this. First, the market already has the view that the Fed will not hike further. Easing oil prices and base effects of Hurricane Katrina falling out of inflation numbers soon mean that inflation pressures will come off sharply. Hence, with the market expecting the next move to be a cut, the question is when would the next rate cut be. In this sense, growth related data would be crucial. Secondly, the market will look towards next week’s data releases (housing sales, consumer confidence, durable goods orders and the Chicago PMI) to understand if the Philly Fed survey was an outlier or whether it does signal a clear turning point for the economy. Analysts at BNP Paribas expect upcoming US data releases to increase the probability of surprise for the Fed (as well as the market). In such an event, it is likely that we see a change in the way the curve would trade. While weak growth data has, over recent weeks, kept the curve in inversion, the data could well prompt a steepening as rate expectations are adjusted. The central bank kept overnight rates unchanged at 5.25 percent for the second straight time at a policy meeting earlier this week. While the dollar has hung on to its rate advantage against the euro and the yen, the end to the Fed's two-year tightening cycle has coincided with a rise in key rates elsewhere. Rates in the euro zone are at 3 percent, and are expected to climb as high as 4 percent next year, while the Bank of England last month raised to 4.75 percent. Still, some traders said that the dollar, which has fallen from a five-month high of 118.29 yen hit earlier in the week, was finding support from domestic importers before they close their books for the half-year at the end of the month. The euro was at $1.2795 near a two-week high after rising 0.8 percent a day earlier. The single currency inched up to 148.85 yen. The yen has climbed against the euro this week, pulling further away from a record low of 150.73 yen hit late last month.

Traders said that the market's next focus will be on the final reading of U.S. economic growth in the second quarter due next week, which could confirm a slowdown.

Source: Financial Mirror

Dominic Farrell warns against "blind" property investing

I have returned from the idyllic island of Cyprus and fabulous temperatures in the mid 30 degrees centigrade and have just completed a “Fundamentals…” course in London over the weekend. I really enjoy these opportunities to interact with so many people who have the common goal of creating wealth through property investment and willing to share the little or vast knowledge they have with others. This course was no different to the others we have held over the last 3 years and produced yet another wide array of talents, from property developers to journalists, accountants to IT specialists. Our final course of the year will be held on 18th November 2006 if you wish to attend.

We have a busy month ahead with a couple of TV appearances and a slot on the radio as well as talking/presenting to a number of “wealth clubs” and financial services companies clients. September and the beginning of October are the busiest months in our calendar and as such some events we have been to in the past have to be chopped.

One such event is the Property Investor Show at the Excel Centre which we have exhibited at for the past 3 years with 2 of our companies. I enjoy the event and meeting up with lots of people we know but this year the diary is literally too full and something has to give. However, some of the Bewarethesharks.com team will be there exhibiting under the title of "The Jet-to-Let Bible" where you will be able to buy a copy of my book and also reserve your own copy of the new "Jet-to-Let Magazine." There will also be some very special offers which we have reserved for the show.

In my view you should not invest overseas without first reading the book and subscribing to the FREE Jet-to-Let Magazine. Many of the mistakes investors make, including believing the marketing hype of some agents, will not be made by those who digest fully the contents of the book and magazine.

This is a nice lead in to my main point this week.

DO NOT invest in a development in the UK or overseas without visiting the project site first or at least with the option of a full refund of the reservation fee if your inspection proves unsatisfactory.

How many people buy a suit, dress, perfume, car, sunglasses or shoes without first trying them out! It appears a lot more than try out the development before investing off plan.

I wandered around a project site recently which I know was mainly sold largely unseen on the internet to investors. I know the area extremely well as I have a house in the beach area and for the life of me why anyone would have wanted to invest in this particular project is beyond me. You only have to stand on the site to realise that the re-sale and rental market will be very difficult as the market does not want this location – why?

Because there is nothing there:

No infrastructure
No shops
No supermarkets
No restaurants
No bars
No beach and the pool is an afterthought.
and to cap it - a dangerous road notorious in the area for accidents.

In fact the pool which is meant to service many, many apartments looks smaller than my family pool at home! Because an apartment may look cheaper, have a "discount" or look favourable on a comparable basis, just make sure that the sellers are comparing "apples with apples" and not "apples with oranges"

No surprise to see lots of “For Sale” signs and very little sign of anyone living or renting there.

So, please do not be tempted by marketing materials, investment appraisals, “you need to buy now before they all go…” without visiting the site first and using your common sense and working out the target market that the property will appeal to (or maybe not) aka Exit Strategy.

Cyprus property price inflation accelerates

Residential house prices rose for their sixth consecutive month in August.

Prices increased by 1.6% month on month in August.

On a year on year basis, prices are accelerating. Residential house prices rose by 10.3% year on year in August--the highest year-on-year growth on record.

Source: Financial Mirror

Budget airlines being lured to Cyprus

EFFORTS to attract low-cost airlines to the island are underway in an effort to boost the country’s tourism industry.

Pantelis Ioannides, Press Officer for the Cyprus Tourism Organisation, yesterday told the Cyprus Mail that negotiations began approximately 12 months ago under previous CTO Chairman Photis Photiou.

“The attempt to have airlines expand their flight schedules to include Cyprus is an effort to increase tourist numbers and to bring people to Cyprus from countries that don’t currently have direct flights, such as Sweden. Passengers who previously wouldn’t have had an easy opportunity to visit have been targeted, with lower prices giving an incentive to travellers,” he said.

“Our new board of directors, appointed on August 1, have been continuing with negotiations. If we reach an agreement with the airlines, such as easyJet, Ryanair and FlyMe, we expect flights to begin shortly.”

When asked whether the initiative will be seen as stepping on the toes of long-established airlines such as Cyprus Airways and British Airways, Ioannides said: “Not at all. We are trying to establish flights from destinations where we don’t have current satisfactory flight connections, with new travel points added. All airlines are working together to bring tourists to Cyprus through any opportunities.”

Backing up the CTO’s views was Marianna Trokoudes, BA’s Cyprus manager.
“We believe that competition is healthy for the industry and the country. It is to the benefit of the consumer to have choice,” she said.

“British Airways are leading the way in the airline industry. BaConnect for example has started operations to Cyprus with a Manchester to Paphos route which is extremely popular. Maybe this will open the way for other carriers.”

Speaking from England, an easyJet spokeswoman would only say that, “the company is in discussions with around 50 European airports regarding expansion.”

Source: Cyprus Mail

Cyprus economy continues to grow strongly

Cyprus economy continues to grow strongly Cyprus GDP grew in real terms during the second quarter of 2006 by 3.7% year on year. This continues the robust performance of the economy and is in line with expectations. Indicative indices on the performance of various economic activities during the second quarter of 2006 are:
Tourist arrivals +2.6%More importantly tourism revenue +8.3%building permits in M2 +5.9% (Jan.-May)wholesale and retail trade turnover value index +8.2%telecommunications index +2.8%air transport index +6.7%production volume index of electricity +7.8%financial services +19.4% Of particular note in the figures is the strong growth in tourism revenue which is far more important than the number of arrivals. This combined with the overall strategy at governmental level to position Cyprus as a higher net worth destination bodes well and will be seen as a vindication of policy.
These are a very good set of figures.

InvestinCyprus.com

Famagusta District is booming

Data on building permits released by the Statistical Service CYSTAT indicate that the overall construction sector is buoyant, although there are sharp differences depending on the area.

The total number of building permits authorised in May reached 832, a rise of 21.9% compared with May 2005. The value of permits rose by 29.4% to CYP 145.3 mln and the total area rose by 31.5% to 380.1 thousand square metres.

These building permits provide for the construction of 2,090 dwelling units.

This continues a strong trend. During the period January - May 2006, the number of building permits issued rose by 11.7% year on year to 4,155.

The total value increased by 8.8% and the total area by 5.9%. Τhe number of dwelling units recorded a rise of 3.3%.

Free Famagusta up by 64.5%

A breakdown of figures by region shows that the performance of each district differs markedly.

The number of individual dwelling units authorised for Free Famagusta (Ammochostos) rose by a staggering 64.5% to 847 in January-May. Since the number of actual permits rose by a much lower 16.3%, it suggests that there is strong demand for the construction of apartment blocks.

At the opposite end of the spectrum, the number of individual dwelling units authorised for the capital Nicosia dropped by 17.5%. However, a strong rise in the number of permits issued for rural areas (up 41.3%) suggests that the latest fashion is no longer to have a brand new apartment but to have brand new house, even if you can only afford one out of town.

As far as the number of building permits is concerned, the small rise was recorded in Paphos on the west coast of Cyprus, where they rose by only 3.6% year on year.

This indicates a more mature market: Paphos was the first area to benefit from the demand for holiday homes and is also the most expensive.

Source: Financial Mirror

Beware non-regulated property investment funds

I am often asked, "What do you think of XYZ property investment fund?"

My answer is always, "Is it regulated by the Financial Services Authority (FSA)?

If the answer is "Yes" I will then ask for the details, pricing, weighting, fund manager's experience etc..............make a few comments and then invite the questioner to conduct their due diligence before investing or maybe not depending on the outcome of their research.

If the answer is "No" I tell them not to bother.

Why take the risk of investing in a non-regulated fund, when you can invest in one which is regulated by the FSA?

There are plenty of them about.

Dominic Farrell

InvestinCyprus.com announce the launch of their lettings and rental company

InvestinCyprus.com today announced the launch of a new rentals and lettings company in September 2006.

Dominic Farrell, director, said, "We are pleased to announce the launch date in September of our lettings company as a key factor for any investor is to actually have tenants in the property contributing to costs and generating income. Although we have come across some excellent lettings companies in Cyprus over the past few years which we recommend to our clients, the majority are simply not up to the required standard in terms of service and bookings."

Managing Director Stephanie Fairhurst adds, "This service is only available to InvestinCyprus.com members and as such we will all share information, tenants and short-term bookings across the company. We will pool bookings which cannot be met by individual members who may have an enquiry, but cannot fulfil it due to their properties already being booked. We will operate a sort of "clearing system."

The website will be available for members' comments and feedback at the end of August. The lettings office is operational in Protaras and Michelle McGlade has taken the reins as the Lettings Manager.

www.InvestinCyprus.com

Forex borrowing reach 20% of all borrowings in Cyprus

Foreign borrowing now accounts for just under a fifth of all lending by commercial banks, according to the most recent figures from the Monetary Survey, and continues to rise.

Foreign loans and advances of commercial banks reached CYP 2,099.3 mln or 19.5% of the total in June, up from 1,981.2 mln or 19.0% in May.

When Cyprus joined the EU May 2004, foreign borrowing was only 9.8% of the total, according to Central Bank reports at the time.

The acceleration in foreign borrowing has been sparked by two developments. First, the entry of Cyprus into the EU, which led to the automatic lifting of all remaining restrictions on foreign borrowing.

This allowed anyone and everyone to borrow in euros or other currencies.

Eurozone interest rates are lower than those in Cyprus, and anecdotal evidence suggests that gap between local lending rates and euro rates is rather bigger than the gap between official rates (now currently only 50 basis points).

The second reason is Cyprus’ entry into the Exchange Rate Mechanism in May 2005. The entry of the pound at the same central parity rate as its previous peg to the euro led to increased confidence to the Cyprus pound.

Since fewer people expected devaluation, more people felt able to take the currency risk of borrowing in euros.

Overall borrowing rises

While foreign borrowing rose between May and June by 6.0%, total borrowing rose in the same period by 3.3% to 10,759.1 mln.

Almost half of the total is accounted for by “personal and professional loans”, of which only 3.3% is hire purchase and 1.6% is credit cards, so presumably the rest is accounted for mainly by mortgages.

Deposits in the banking system amounted to CYP 16.6 bln in Jun, more than double annual GDP. Of this, CYP 9.9 bln was resident deposits and CYP 6.7 bln was non-resident deposits.

Customer deposits at International Banking Units, which for the time being are still measured separately, amounted to CYP 5.2 bln.

Deposits at Co-operative Banks amounted to CYP 4.9 bln.

Source: Financial Mirror

Mimosa Villas, Kapparis - SOLD OUT

Launched 20 days ago, the Mimosa Villas development is now sold out.

Bank of Cyprus abandons Emporiki bid

Bank of Cyprus on Wednesday night surprised investors by withdrawing a €3.78bn cash-and-shares offer for Greece's state-controlled Emporiki Bank, leaving France's Credit Agricole as the only bidder.

The Cypriot bank said in a statement on Wednesday it would seek the approval of the Greek authorities to revoke its offer for Emporiki, the centerpiece of the conservative government's 2006 privatisation programme.

Analysts said the Greek Cypriot lender was concerned that Emporiki's uncovered pension liabilities could reach as much as €1.2bn, in spite of renewed by the bank's management that the Greek finance ministry had resolved the issue.

With the bidding deadline set for July 25, there would still be time for another Greek bank to trump Credit Agricole's €3.1bn offer for Emporiki. Alpha Bank, the biggest private Greek bank, has not ruled out making a bid.

George Alogoskoufis, the finance minister, said Greece is keen to attract a west European bank in order to boost competition.

Credit Agricole will come under pressure to increase its offer of €23.5 per share, which was seen as undervaluing Greece's fourth-biggest bank. The French lender already holds 9 per cent of Emporiki and is understood to be satisfied with the Greek government's solution to the pension problem.

BoC's pull-out from the race leaves it open to a possible takeover bid by Bank of Piraeus, Greece's fifth-largest bank by assets.

Source: Financial Times

Foreign Direct Investment almost EUR 1 Billion in 2005

Data from Eurostat shows that combined inward foreign direct investment into Cyprus reached EUR 900 mln in 2005.

Just over 50% of the investment, EUR 0.5 bln, came from other EU member states, while the balance of EUR 0.4 bln came from outside the EU.

InvestinCyprus.com FREE investment seminar 17 July 2006 London at 7pm

Dominic Farrell author of bestselling “The Jet-to-Let Bible: the secrets of overseas property investment” will be hosting a FREE seminar Monday 17th July 2006 in Central London at 7pm examining the case for investing in Cyprus.

With property prices reported to have risen by almost 5% since May, now is an ideal opportunity to enter the market. He will also highlight why some recent events will have a significant impact on the economy as well as the property market in forthcoming years.

Dominic has also had high level talks with banks in Cyprus and will soon be launching a market leading mortgage product aimed specifically at property investors. This will be exclusive to InvestinCyprus.com

The seminar will also look at some of the latest development projects which offer

independently verified 12% discount to market value

guaranteed rental schemes covering 19 months of costs

pre-VAT properties

2009 completions for maximum capital growth and

a specially designed resort development aimed at buy-to-let investors in the fast growing region of Kapparis, known as "Kapparis Complex" and due for completion in 2009.

If you wish to attend please complete the form at:

http://www.investincyprus.com/contactus.html

Adding seminar tickets in the “Additional Comments” box

These events are always full and tickets will be allocated on a first come first served basis and limited to 2 per applicant.

To purchase The Jet-to-Let Bible please visit:

http://www.amazon.co.uk/gp/product/190526111X/026-3854365-1929207?v=glance&n=266239

Amazon has sold out and is now in the process of re-stocking so there will be a slight delay on receiving your copy.

See you on Monday

Cypriot re-unification talks back on the table

Tassos Papadopoulos, the Greek Cypriot leader, is set to discuss strategy with Greek leaders in Athens on Monday, after making an unexpected deal at the weekend to revive United Nations-backed re-unification talks with the Turkish Cypriots.

The new talks, due to start later this month, are not expected to bring an early agreement on ending the island's 32-year division.

But they could help avert a possible crisis this autumn between Turkey and the European Union, over Ankara's refusal to recognise Cyprus and open Turkish ports and airports to Greek Cypriot traffic, unless the economic isolation of the Turkish Cypriots is lifted.

"Movement on Cyprus after a two-year hiatus is a step forward. More flexibility in Nicosia can only assist the EU-Turkey relationship," one diplomat said. Mr Papadopoulos's decision to unfreeze relations with the Turkish Cypriots came amid increased pressure from Athens for inter-communal talks to be re-started.

As Greece strengthens its support for Turkey's EU membership bid, Costas Karamanlis, the prime minister, has pressed for regular communication to be restored between the Greek and Turkish Cypriot leaders.

"This is a new opening… but goodwill will be needed" Mr Papadopoulos said after a three-hour meeting on Saturday with Mehmet Ali Talat, the Turkish Cypriot leader, which was chaired by Ibrahim Gambari, a UN special envoy.

Kofi Annan, the UN secretary general, later made a congratulatory phone call to both Cypriot leaders, officials said.

Contact between the Greek and Turkish Cypriot leadership had been frozen as a result of the Greek Cypriots' rejection of a detailed UN re-unification plan at a referendum in 2004, one week before Cyprus joined the EU. Mr Papadopoulos claimed the plan was unworkable.

The referendum outcome stirred resentment among Turkish Cypriots because it excluded them from EU membership, in spite of having overwhelmingly backed the UN plan in a separate referendum.

The deal brokered by Mr Gambari calls for a technical committee to start discussing co-operation on "day-to-day" issues such as water and energy management, provided that Mr Papadopoulos and Mr Talat in the meantime exchange a list of substantive improvements to the UN peace plan, for study by Greek and Turkish Cypriot experts.

"This was a compromise," said Mr Talat, who has few concerns about the UN plan but wants a deal that woud secure energy and water supplies for the self-declared Turkish Cypriot republic in north Cyprus.

Mr Talat has less room for manoeuvre than Mr Papadopoulos because of the strong influence wielded by the Turkish military and the Ankara government in the north.

The two leaders also undertook to end the so-called "blame game," referring to the Cypriot leaders' practice of venting mutual recriminations whenever their talks have stalled.

Source: Financial Times

Cyprus property market up almost 5% since May

It was reported 7 July that property prices had risen by 2.71% in June following a 2.25% rise in May

InvestinCyprus.com leads the way in the Cyprus mortgage market

InvestinCyprus.com will shortly announce the introduction of the first further advance/re-mortgage product in Cyprus.

Given the size of the company's mortgage book, InvestinCyprus.com has huge leverage in the market which greatly benefits our clients.

By taking a further advance to release equity an investor can leave little if any cash tied up in the investment thus dramatically improving return on investment. It also allows for the proceeds to be re-invested.

Further details will be announced to our clients shortly

Mimosa Villas, Kapparis - 12% below current market value

We have received a fantastic response to the e-mail sent out last week regarding Mimosa Villas, Kapparis.

We have now received the independent valuation appraisal which values the project about 12% below current market value, although completion is in March 2009, not today.

The appraisal also states that the size of the properties is greater on a square metre basis than originally thought.

In outline, a 2 bedroom villa (all inclusive of swimming pool, white goods and air-conditioning split units) is CYP1444 per square metre with an almost 3 year off plan timeframe for further growth. There are also 3 bedroom villas.

A comparable development only a few hundred metres on the same road and arguably not in as good a location as Mimosa, is selling with a completion date of April 2007 at CYP 1829 to CYP1989.

We can supply you with the independent appraisal, comparable development pricing and also details about the villas, prices, mortgages and rentals 12 noon Monday 3 July 2006.

InvestinCyprus.com can deliver these type of projects to our clients as we have significant leverage in the Cyprus property market. The huge reduction in a developers cost base in terms of interest payments on loans, marketing, sales, exhibitions, staff, inspection visits etc when a development sells very quickly can be passed on to the investor.

If you haven’t yet registered to receive details of Mimosa Villas, Kapparis then please complete the form at:

http://www.investincyprus.com/contactus.html

adding Mimosa in the comments box.

EU gives Cyprus the thumbs up on budget deficit

THE European Commission yesterday recommended that the Council abrogate the Excessive Deficit Procedure (EDP) against Cyprus, after the island’s deficit fell to 2.4 per cent of GDP in 2005 and is projected to decrease further in 2006 and 2007.

The Commission also said that Cyprus’ debt to GDP ratio also dropped to 70.25 per cent in 2005 and is forecast to drop to 68 per cent in 2007.

“Cyprus would be the first of the six new Member States that were put into the EDP upon European Union membership to see the procedure abrogated,” a statement from the Commission said.

“It would also be the first procedure to be closed since the Netherlands, in June 2005. In total, there remain 11 countries in excessive deficit procedure, five of which are in the euro area.”

Cyprus is racing towards euro entry in January 1, 2008 but must first meet the Maastricht criteria to bring the fiscal deficit under the 3.0 per cent ceiling. To reach the set target, the government has implemented a strict budgetary regime in line with the convergence programme it has submitted to the EU.

“The Cypriot case shows that budgetary consolidation undertaken with resolve can achieve sustainable results. I encourage Cyprus to pursue this route and achieve its objective of having finances close to balance by the end of the decade given the high risk arising from the costs of an ageing population,” said Joaqu?n Almunia, European Commissioner for Economic and Monetary Affairs.

According to the Commission’s spring forecasts, the deficit and the debt are expected to fall further in 2006 and 2007, thus staying well below the 3.0 per cent reference value and allowing the debt ratio to diminish sufficiently towards the 60 per cent of GDP reference value.

“That points to a durable correction of the excessive deficit, thanks to the substantial and largely structural measures taken by the Cypriot authorities,” the Commission statement said. “Therefore, the Council is invited to conclude on July 11 that Cyprus no longer has an excessive deficit.”

Cyprus had a deficit of 6.25 per cent in 2003. The Council recommended a correction below 3 per cent by 2005 in a credible and sustainable manner, while ensuring that the rise in the debt ratio was brought to a halt in 2004 and reversed thereafter.

“This has been achieved,” said the Commission.

Source: Cyprus Mail

Mimosa Villas pre-launch registration - outstanding investment opportunity

In the Jet-to-Let Bible: the secrets of overseas property investment we examined how multiplier effects have a positive long-term influence on property prices.

An example of a multiplier effect in Cyprus is Kapparis, Paralimni which has benefited substantially from the development and sale of upmarket villas to wealthier individuals.

These wealthier individuals demand higher quality goods and services which has the effect of attracting additional buyers and further developing resulting in an expansion of services on offer. However, given its geographical location, there is only a limited amount of land which can be developed.

I have lived near the beach in Kapparis for almost 2 years and have witnessed the general improvement in infrastructure and services. In the last month, 3 new quality restaurants have opened and another one is on the way. The growing ex-pat community is setting up business or simply retiring. This growing community requires accommodation, whether purchased or rented.

The key is that the area is not a seasonal tourist destination but an all-year round residential area which just happens to attract tourists because of the beaches and restaurants. The rental market is strong, particularly with Cypriots. At the weekend, wealthy Cypriots in Nicosia head for this area to their second homes or rental properties.

Prices and property values are rising with many investors having done particularly well over the last couple of years. The two main property investor hotspots of Famagusta District (centred on Paralimni) and south Larnaca will continue to lead the way in terms of capital growth and rental income on the island of Cyprus .

We have a new villa development to be released shortly, located in a prime location in this fast growing area of Kapparis. These villas are at the luxury end with private pools and a Jacuzzi in the bathroom, 3 minutes to the beach and 3 minutes to the best restaurant in the district, we are confident that it will sell very quickly (Our last villa development sold out in one day). Completion is set for 2009 allowing a considerable time for off-plan geared capital growth and then 30 year mortgages with the first 5 years interest only on 80% LTV. 100% mortgages are also available (subject to status)

But the biggest plus is that we have secured a price below market value due to our company’s strong leverage in the market.

Details will be available on our website from 1200 noon on Monday 3 July 2006 and will be offered on a first come, first served basis.

The details will include an independent valuation appraisal by the largest Royal Institute of Chartered Surveyors practice on the island to verify the discount to market value. We will send a second e-mail once we have confirmation of the independently verified discount.

This is an outstanding opportunity to invest in the fastest growing area in Cyprus with excellent long term growth potential.

To register for this development please fill out the form at:

http://www.investincyprus.com/contactus.html

adding “Mimosa Villas” in the comment box

You will then receive an email with details from 1200 noon on Monday 3 July 2006 and will be offered your choice of plot on a first come, first served basis.

Bank of Cyprus to bid for Emporiki Bank

THE Bank of Cyprus (BoC) will today disclose details about its takeover bid for Greek lender Emporiki, as market analysts and investors alike in Cyprus and Greece hold their breath.

Earlier this month, France's Credit Agricole launched a friendly takeover bid for Emporiki that valued Greece's fourth-largest lender by assets at 3.1 billion euros.

The French bank already holds a 9 per cent stake in Emporiki, while a further 40 per cent is controlled by the Greek government, which is seeking to privatise the bank.

The BoC has confirmed it plans to buy out 100 per cent of Emporiki.

The BoC’s CEO Andreas Eliades was yesterday in Athens for talks with Greek Finance Minister Giorgos Alogoskoufis.

“Our bid will be comparable and autonomous,” Eliades told reporters after his meeting with the Greek minister.

The BoC will be convening a news conference today, giving facts and figures about its takeover bid and recapping developments in the issue, described by some Greek papers as a thriller.

Reports from Greece suggest that other banks might enter the fray and contest Credit Agricole.

For his part, Alogoskoufis refused to elaborate on what was discussed with Eliades, except to say the Greek government would examine all bids for Emporiki that were comparable to that launched by Credit Agricole.

One scenario floated in the Greek press is that the Greek government will accept a cash-only bid for 11 per cent of its stake in Emporiki.

Meanwhile analysts predict that if the BoC does go ahead, its bid will be for somewhere between 26 to 28 euros per share.

The BoC’s own stock in Nicosia was down 7.6 per cent, while Emporiki’s was 1.32 per cent lower at 26.94 euros. Analysts said the drop was fuelled by concerns on how the Bank of Cyprus would fund the move.

The largest financial institution on the island, the BoC had total assets of 22.32 billion euros at end-2005 and a 3.9 per cent share of the Greek market.

2005 was a highly successful year for the bank, which posted net profits of £72 million, and the group will be commencing full-scale operations in Russia and Romania by early 2007.

Cypriot analysts said rumours were going around in the market that the Bank of Cyprus mounted its bid for Emporiki in an attempt to fend off a perceived attempt by another Greek bank, Piraeus, to buy a large stake in the Cypriot bank.

By law, suitors require Central Bank permission to directly control more than 10 per cent of a Cypriot bank.

Source: Cyprus Mail

The Jet-to-Let Bible reaches Amazon bestseller spot before publication

"The Jet-to-Let Bible: the secrets of overseas property investment" has stormed to Number 1 Bestseller in its category on Amazon, even before a single page has been printed. It is also in the top 10 of all property investment books, beating such notables as Donald Trump.

The book, written by Dominic Farrell, will be available in good bookshops such as WH Smith and Waterstones from 16th June 2006, but is already available at amazon.co.uk

Order your copy today and learn the successful techniques used by property investment millionaires:

http://www.amazon.co.uk/exec/obidos/ASIN/190526111X/qid=1149544921/sr=1-6/ref=sr_1_3_6/203-7861375-3298301

The journey begins with the first step.

Cyprus Property Investment Seminar - 6 June 2006 in Manchester

Dominic Farrell, director and author of “The Jet-to-Let Bible: the secrets of overseas property investment” will outline the economic and financial case for investing in property in Cyprus .

Dominic’s new book will be available in WH Smith and Waterstones from 16 June or can be purchased at:

http://www.amazon.co.uk/exec/obidos/ASIN/190526111X/qid=1149082699/sr=8-7/ref=sr_8_xs_ap_i7_xgl/203-7861375-3298301

The property investment seminar will take place Tuesday 6th June 2006 at 7pm at Manchester Airport . If you wish to attend then please e-mail or telephone your name, address and contact telephone number to info@investincyprus.com. This is a ticket only FREE seminar limited to 2 tickets per applicant. Events are always full and ticket allocation will be subject to availability.

Boosted by the recent news of a possible discovery of oil and natural gas reserves offshore, the Cypriot economy continues to maintain strong growth, with inflation and unemployment relatively subdued. See

http://blog.investincyprus.com for further details.

InvestinCyprus.com has noted a surge in the number of enquiries and sales this year following a highly successful 2004 and 2005. As Cyprus approaches the adoption of the Euro in 2008, we expect this demand to increase further.

It is also interesting that many buyers have very different strategies and as such unlike some other investment countries there is not a huge number of “For Sale” signs on completion of a development.

Our project at Blue Electra, Kapparis, with 42 apartments, has 1 seller on completion next month, others who wish to live and let and others who will either live there permanently or use their apartment as a second home. This is an important consideration when investing off plan in the UK or overseas.

This not to be missed seminar will also highlight new developments available from InvestinCyprus.com including:

Pre-VAT properties
7% guaranteed rental agreements secured through a PLC Hotel chain
100% mortgages (subject to status)

See you next week

Regards
Samantha Robinson
Marketing Executive
InvestinCyprus.com
Hanover House
Hanover Street
Liverpool
L1 3DZ
Tel: 0151 482 5534
Fax: 0151 482 5501
www.investincyprus.com
http://blog.investincyprus.com

Positive signs for Oil and Gas Exploration off Cyprus coast

Nicosia , May 15 (AP) -- Preliminary exploration for offshore gas and oil reserves in the Mediterranean seabed between Cyprus and Egypt has yielded encouraging results, the Cypriot government said Monday. "The first data we have is positive and encouraging," Trade and Industry Minister George Lilikas told a news conference. "When we get new and secure data in the near future we will announce it."

Norwegian company PGS Geophysical AS has already completed a two-dimensional seismic survey of the area and is now processing the data, Lilikas said.

The exploration covered an area of some 60,000 square kilometers (23,000 square miles) -- over six times the Mediterranean island's size -- to the south and southwest of Cyprus .

Lilikas said his hopes were heightened by the positive results of Egyptian explorations near the line that separates the two countries' exclusive economic zones.

Earlier this month, Egypt and Cyprus agreed to jointly seek and exploit possible oil and gas fields in the Mediterranean .

Lilikas said the government soon planned a three-dimensional survey in areas the initial survey found promising.

Source: Cyprus Embassy, Washington

Xenia Villas, Cape Greco - SOLD OUT

We are please to announce that Xenia Villas in Cape Greco which we launched 8 weeks ago is now completely sold out.

Cyprus property investment seminar - 22 May at 7pm in London

InvestinCyprus.com will be holding a property investment seminar in central London Monday 22nd May 2006 at 7pm

Dominic Farrell author of “The Jet-to-Let Bible: the secrets of overseas property investment” will outline the compelling case for investing in Cyprus and will examine the very latest hotspot areas, economics, legal, tax and financial advantages of investing in this vibrant and low risk country.

Tony Taylor, a client of InvestinCyprus.com will show how he purchased more investment properties last week for “no money down” and with 100% finance.

In one case he invested in a 2 year off-plan penthouse with a guaranteed 7% rental agreement on completion (negotiated with a major PLC hotel group) for only £58 per month with no deposit.

InvestinCyprus.com’s latest developments, including 3 years off-plan capital growth investments and 7% guaranteed rental projects will also be launched.

This is a ticket only event and places are free. Tickets are limited to 2 per applicant. Please e-mail info@investincyprus.com to reserve tickets including your full name, telephone number and an address where we can send the tickets.

These events are always full, so please reserve your place immediately.

InvestinCyprus.com

Cyprus property investment weekends - 5-8 May and 12-15 May

Cyprus Property Investment Weekends

InvestinCyprus.com property investment weekends are unique and are the only dedicated investor events of their type on the island of Cyprus and led throughout by experienced professional investors.

The weekends have proven to be very popular and are huge fun, for both the investors and ourselves.

You have informative seminars presented by our lawyer and accountant on the legal and financial aspects of investing in Cyprus and you also have the opportunity to discuss mortgages with our mortgage advisor.

You also have plenty of time to view our developments.

The aim of the weekend is to inform and educate, but we also manage to have a few fun nights sampling the delights of the Cypriot nightlife.

As you will appreciate, these weekends are always full, so please reserve a place as quickly as you can.

Our advice and assistance does not stop after the weekend. The InvestinCyprus.com team of advisors, whether property investment strategy, the law, tax, lettings, furnishings, foreign exchange are all on hand to help and are only a telephone call away, or a visit.

Your personal investment manager is always available by e-mail or telephone, in person in our offices in Liverpool or at one of our innovative Customer Services Open Days in London .

You provide the flight and we provide the accommodation, food and transport. Please book and confirm your place on the investor weekend BEFORE you book your flight.

Next dates: 5-8 May and 12-15 May 2006

To book your place please ring 0151 482 5526 or e-mail info@investincyprus.com

Our aim is to take the hassle out of investing in Cyprus and InvestinCyprus.com staff are available to ensure that you do as much or as little as you wish.

Click here to see what our clients think:

http://www.investincyprus.com/testimonials.htm

Best Wishes

www.investincyprus.com

Cyprus is second most popular Easter destination for the British

Spain is the favourite place this weekend for UK tourists as a record 2.3m holidaymakers leave the UK to find the sun.

The Association of British Travel Agents (ABTA) said the exodus overseas was caused by the poor weather for this time of year and Easter falling later than usual.

The second most popular foreign destination is Cyprus , followed by Portugal , Tunisia , Egypt and Florida .

InvestinCyprus.com

Property investment - a Currency Risk Plan saves you money

Currency planning is an important factor when considering your property investment strategy. What if sterling gets stronger, or gets weaker against the Cyprus Pound, Euro, Swiss Franc or US Dollar? How will it impact my investment and what can I do about it? What happens to my mortgage?

nvestinCyprus.com have pre-empted all of those questions and our clients have full access to our currency broker if they choose to take up the offer. They are advised on whether to buy Cyprus Pounds on the spot, forward buy or place limit orders thus potentially saving substantial sums.

We set up a currency account for free on your behalf which again saves you money on any transfers while your broker is conveniently at the end of a telephone for advice and assistance.

Below is a useful article from today's Financial Times:

"While the UK property market shows signs of a modest rebound, our ardour for buying holiday homes abroad is undiminished. Latest estimates suggest around 1.5m people in the UK now own a place overseas.

Europe remains the favourite location, with new hotspots such as New Zealand , Bulgaria and Canada emerging, according to HIFX, a currency broker.

But many purchasers still enter into property transactions with a reckless attitude. Simon Conn, managing director of Conti Financial Services, says individuals frequently overlook the issue of fluctuating foreign exchange rates. It typically takes six to eight weeks to complete a property purchase abroad, according to HIFX. Currencies can fluctuate dramatically over such a period. According to HIFX, a €250,000 property bought on March 1 2006 would have cost £169,837. But by April 5, the same property would have cost £175,523, following a healthy rise in the euro relative to sterling.

According to David Reith, divisional director of currency brokers Moneycorp, 60-70 per cent of purchases are new-build and payments are staged between around four sums, the last of which is payable on completion, which can be in a year's time.

Alex Wright, director of private client services at HIFX, says individuals need to eliminate risk and not speculate on the sometimes quite volatile currency market: "If you're buying a house in the UK , you won't normally open a spread betting account. Why do it with Spain ?"

People buying larger sums of currency can protect themselves against fluctuations by buying forward contracts from banks or brokers. These contracts allow you to fix the exchange rate today for delivery in the future, subject to a 5 or 10 per cent deposit, known as a margin. If your target currency market moves against you by more than the deposit percentage, the bank or broker may make a margin call, for additional security.

Wright says the exchange rate that buyers get will depend on the interest rate of the target currency. The exchange rates on forward contracts may be slightly better than instant or "spot" rates if you're buying a higher interest rate currency. If the interest rate on the target currency is low, the forward exchange rate is likely to be slightly worse than the spot rate.

The advantage of forward contracts is that you can buy currency now and pay for it later. You also lock in a rate, giving you certainty over the purchase price of your property. The downsides, however, are two-fold: you're unable to take advantage of future exchange rate moves in your favour; and you lose on the interest you might otherwise have earned on the deposit.

Currencies can be volatile in the short term too. On July 7 last year, the day of the London terrorist bombings, the sterling to euro rate fell from 1.4707 to 1.4509. On a £100,000 purchase that's a difference of nearly €2,000.

A handy tool buyers can use for buying forward, or indeed buying spot, are market orders known as "limit" and "stop loss" orders. These allow punters to set top and bottom rates they wish to do business at. Automatic purchase is triggered when the exchange rate reaches what you believe to be at or nearing a high point , or when it drops to a designated level. (If a currency slips below a certain support level, it may have a lot further to fall.) Brokers can help customers understand where to set these buy points.

Brokers tend to offer better exchange rates for larger sums than the big four banks, and it's worth shopping around. If you do go via a high street bank ask for the wholesale exchange rate rather than the less competitive tourist one. Also, try and get the bank's booking rate rather than the indicative rate. The former is the price you'll end up paying.

But you are likely to get a much better deal via a specialist currency broker, and some brokers do not charge customers transfer fees for sending money abroad. By contrast, the big four banks charge £18-£35.

Many European banks and some in the US also charge receiving fees. Currencies Direct and Moneycorp have a list of Spanish banks where there's no fee. HIFX promises no receiving fee at any Spanish bank.

However, before you send a small fortune to some obscure broker remember that currency broking isn't regulated by the Financial Services Authority. So buyer beware."

Source: Financial Times

Cyprus property investment - beware of "sharp" practices

We had a full house at last Monday’s InvestinCyprus.com property investment seminar in London . It was fantastic to meet with so many investors looking for the opportunities that Cyprus has to offer and the unique and professional property investor service that InvestinCyprus.com can provide.

Dominic Farrell outlined the economic and financial case for Cyprus and also highlighted some “questionable” practices adopted by some companies and that due diligence with any overseas property investment was the key priority.

One “questionable practice” that some overseas companies pursue is to add in the common shared area to the sales price of an apartment. Here’s an example:

The fact that you have a share in the corridor outside your apartment is irrelevant to the size of your property and what you pay! Suddenly, to the untrained eye, a Covered area apartment of 74m2 becomes 84m2 when the shared area is added in, which can represent up to CYP10,000 – CYP15,000 on the sales price depending on location, VAT and quality of the apartment.

There is no sensible reason why part of the corridor outside your apartment should be reflected in the “Total covered area”

Why this is so is open to speculation!!

My advice would be to avoid companies which adopt this practice.

Dominic also highlighted many other factors to be aware of when investing overseas. His new book, “The Jet-to-Let Bible: the secrets of overseas property investment” will be available at Amazon, WH Smith, Waterstones, Tesco and other good book sellers from 1 June 2006

The next InvestinCyprus.com FREE seminar in London with availability is Monday 22 May 2006 at 7pm. These are ticket only events and are always full so please book early to avoid disappointment. Tickets, which are limited to 2 per applicant, can be reserved by phoning 0151 482 5526 or e-mailing your name, address and telephone number to info@investincyprus.com

Investincyprus.com

Cyprus Economy: budget deficit to fall below 2% of GDP in 2006

The budget deficit in Cyprus should fall to below 2% of GDP in 2006, the Minister of Finance Michalis Sarris announced last week.

The budget deficit in 2005 was 2.4% of GDP, according to latest figures, down from 4.1% of GDP in 2004.

Dominic Farrell, a director of InvestinCyprus.com, says that this is a very positive sign that a major hurdle for adoption of the Euro 1 January 2008 would be crossed.

Dominic pointed out that countries are required to converge with the Eurozone economy and had to meet certain economic conditions, one of which is to have a budget deficit no more than 3% of GDP.

This and many other economic and financial considerations will be covered in a free investment seminar in London on Monday 10th April 2006 at 7pm. For further details please e-mail info@investincyprus.com or ring the UK office on 0151 482 5526 or visit the website.

InvestinCyprus.com

Invest in Cyprus

Invest in Cyprus
Dear Investor
We had a fantastic response to the launch of our exciting new Cyprus property investment at Petounta View, Mazatos, Larnaca.
For further details:
http://www.investincyprus.com/developments/petounta_view.htm
We will be looking at this solid capital growth development and others, including an innovative and up market leisure complex with pools, tennis courts and distinctive landscaping in the fast growing Protaras area, at our seminar next week in central London:
Monday 10th April 2006 at 7pm.
Dominic Farrell, director, investor and author of “The Jet-to-Let Bible: the secrets of overseas property investment” will examine the economic and financial case for property investing in Cyprus and will also look at the latest hotspots for the astute property investor.
To reserve your place, which are limited, please contact the office at info@investincyprus.com with your name, telephone number and an address where we can send your FREE ticket. Maximum of two tickets per applicant.
This is a ticket only event.
For the very latest Cyprus property investment news please visit our unique Cyprus property investors’ blog at:
http://blog.investincyprus.com
InvestinCyprus.com
Hanover House
Hanover Street
Liverpool
L1 3DZ
Tel: 0151 482 5526
Fax: 0151 482 5501

Cyprus economy - budget deficit bodes well for Euro entry

According to preliminary data the budget deficit in 2005, compiled in accordance to E.U guidelines, amounted to CYP 185.6 m in 2005, or 2.4% of GDP.

The deficit was therefore well within the Maastricht criterion of less than 3% of GDP which Cyprus must meet in order to join the Euro 1 January 2008

InvestinCyprus.com

Cyprus government investment in new Technological University

The Cyprus government has chosen some of the sites for the Technological University due to open in September 2007 and is in the process of selecting others, according to the Minister of Education and Culture Pefkios Georgiades.

The first faculties of the new Technological University in the Limassol district will open in September 2007 with around 1,000 students, rising to 7,000 when the project is completed.

Georgiades said the cost of the project would be undertaken by the state, adding that the first faculties would open in September 2007 and the rest in one or two years after that.

Output prices in construction rise by 11.8% in 2005

The Output Prices Index in Construction for the 4th quarter of 2005 recorded an increase of 2.27% over the 3rd quarter 2005. Compared to the same quarter in 2004, the index recorded an increase of 9.85%.

On average, in 2005 the index recorded an increase of 11.8% compared to 2004.For the component indices, in 2005 prices for Building Construction recorded a yearly increase of 12.15% while prices for Civil Engineering rose by 10,8%.

InvestinCyprus.com

InvestinCyprus.com Customer Services Open Days 9-10 April 2006

InvestinCyprus.com will be holding two Customer Services Open Days in London, 9 and 10 April 2006.

Customers will have the opportunity to meet face to face with their own personal investment/account manager and will also have the opportunity to speak with our mortgage advisor.

Those customers who are completing in mid 2006 can apply for their mortgages in London as we have flown the banks from Cyprus to negate the need for you to fly there.

Another customer services innovation from InvestinCyprus.com

Customers will also be able to choose furniture packs and discuss rentals and property management.

Cyprus property investment seminar - Mon 10 April 2006 London

InvestinCyprus.com announce that their next Cyprus property investment seminar will be held in central London Monday 10th April 2006 at 7pm
Dominic Farrell, director and author of “The Jet-to-Let Bible: the secrets of overseas property investment” will examine the economic and financial case for property investing in Cyprus and will also look at the latest hotspots for the savvy property investor.
To reserve your place, which are limited, please contact the office at info@investincyprus.com with your name, telephone number and an address where we can send your FREE ticket. Maximum of two tickets per applicant.
This is a ticket only event.
InvestinCyprus.com
Hanover House
Hanover Street
Liverpool
L1 3DZ
Tel: 0151 482 5526
Fax: 0151 482 5501

British Airways announces increased flights schedule to Cyprus

British Airways has announced an increase in its summer flights schedule to 19 per week over the summer period.

The schedule covers the period between March 26 and October 28 and will include eight flights a week from Larnaca to Heathrow, seven from Paphos to Gatwick and four flights from Paphos to Manchester .
InvestinCyprus.com

Cyprus property moves upmarket

Cyprus has entered the upmarket property leagues, with an appearance in the Financial Times House & Home supplement.

The “FT”, which is standard reading for high net worth individuals across Europe , has a regular holiday home supplement for those with plenty of cash to spare.

But although Cyprus has the best weather in Europe and is just a hop away for readers who spend half their life on planes, Cyprus has been conspicuous by its absence.

That is now beginning to change. The Sunday Times also had a big spread a few weeks ago and last weekend, the FT’s “Southern Europe Special” had a full page on someone who splits his time between “a farmhouse in rural France and a two-bedroom cottage in a quiet corner of coastal Cyprus ”.

Russian tourist arrivals in Cyprus to rise by up to 15% in 2006

Russian tourism is expected to increase by 10-15%in 2006 to with well over 100,000 arrivals expected, the Cyprus Tourism Organisation (CTO) said yesterday.

The Russian market is the third most important for Cyprus after Germany and the UK . Nearly 98,000 Russians holidayed in Cyprus last year, up 16.5% after a decline over the previous year,

“We saw all of the big Russian tour operators today,” said the CTO spokesman who is in Moscow for the MITT travel fair, which begins today and ends on Saturday. “It seems we will have some good results from Russia this year.”

InvestinCyprus.com

Cyprus Pound and Euro dual pricing announced

Businesses will be encouraged to price their goods and services in both Cypriot pounds and euros to prepare the public for adoption of the single currency in January 2008, authorities said yesterday.

The Finance Ministry and Central Bank said businesses would be allowed to use euros and pounds in invoicing immediately. Initially this would be voluntary, but will become compulsory in the months immediately before joining to the euro zone, a Finance Ministry official said.

About 59% of people surveyed in the last Central Bank poll said they thought there would be an inflationary spike from retailers rounding up prices.

InvestinCyprus.com

Cyprus Economy: Inflation subdued in February

The harmonised consumer price inflation (HICP) rate, compiled in accordance with EU-wide methodology, showed that inflation was subdued in February.

The index fell by 0.04% on the previous month to 100.18 from 100.22 in January. It was 2.4% higher than in February 2005.
InvestinCyprus.com

Launch of Petounta View, Mazatos, Larnaca - Prices from CYP42,500

InvestinCyprus.com are excited to be launching their new Petounta View, Mazatos, Larnaca development which is ideally placed to benefit from the capital growth which is expected in the South West Larnaca region as a result of the airport enlargement, new golf course and leisure complex and the funds being earmarked to develop Larnaca Town and Marina.

This area is being tipped as one of the key investment areas in the whole of Cyprus.

Petounta View, Mazatos, Larnaca, Cyprus
Summary:

• 72 one and two bedroom apartments in rural hilltop location
  
• 2km form long sandy beaches
  
• 15 minute drive from Larnaca international airport
  
• 10 minute drive to planned 5 star golf course and leisure facility
  
• Breathtaking sea and hillside views
  
• Long completion date for maximum investment growth potential (December 2008)
  
• Low 20% deposit
  
• Up to 80% mortgage with nothing to pay until completion (subject to status)
  
• Fantastic prices from CYP 42,500 (£51,000)

For further details please e-mail info@investincyprus.com or call 0151 482 5526

http://www.investincyprus.com/developments/petounta_view.htm

Cyprus Property Investment set to boom

Property investment in Cyprus is becoming increasingly appealing to investors worldwide, with a favourable economy where GDP rose by 3.8% in 2005, low inflation and low unemployment and the prospective adoption of the Euro 1 January 2008 drawing record interest from foreign investors.

Peter Christofi, marketing manager for Antonis Loizou & Associates, a firm of Chartered Surveyors and Valuers, agreed with this sentiment and said that the property market would benefit enormously from the move.

"This is great news for Cyprus . Adoption of the Euro is the final fence in becoming part of a united Europe . Cyprus is now stronger than ever and with the proposed adoption date of January 1st 2008 this can only bode well for the property market as more and more investors look to purchase property in this tried and tested island in the Eastern Mediterranean ," he said.

Mr Christofi went on to say that property prices within the country are currently rising at a staggering rate of up 20% annually. As such, investors are finding they can make bigger gains on their property in Cyprus than in France or Spain , while growth rates and the re-sale market in Bulgaria can still be unpredictable.

Dominic Farrell, a director of InvestinCyprus.com cites the English based legal and banking systems as a reassuring feature when investing in Cyprus . “Ninety-five per cent of Cypriot law is English law which gives the investor or homebuyer the confidence of a robust, tried and tested legal system which has all the necessary safeguards, particularly when defining ownership and title issues.”

While investing in some countries can be daunting because of basic communication difficulties, English is spoken by a significant proportion of the population in Cyprus , while the land registry system differs only marginally from that within the UK . All of this is crucial in making the task of buying and selling a property or making a jet-to-let investment all the more comfortable.

Jet-to-let investment opportunities in Cyprus are in fact particularly strong, with rental yields of around 8%. It is a figure that is clearly attracting UK investors in hordes as they look for returns competitive with if not better than those in Spain .

Cyprus Economy: GDP growth of 3.8% in 2005

Figures released today show real GDP growth in Cyprus reached 3.8% in 2005

Indicative growth rates for 2005 were:

· building permits, up by 13.3%

· financial intermediation services up 9.3%

· tourists arrivals up 5.2%

· tourist revenue up 2.4%

· total imports up 8.9%

· total exports up 22.6%

· volume of manufacturing down 1.3%

· electricity output up 3.9%

· wholesale turnover value up 4.7%

· vehicle sales by value up 0.3%

· retail sales volume up 4.6%

InvestinCyprus.com

More Germans to visit Cyprus

The Cyprus Tourism Organisation (CTO) is confident that the number of Germans visiting Cyprus in 2006 will increase, with confidence high after a German tour operator confirmed they will send at least 25,000 more tourists to the island.
InvestinCyprus.com

Cyprus Economy: Unemployment remains low at 4.3%

The unemployment rate in February 2006 remained low at 4.3% of the labour force, unchanged compared to January 2006.

In absolute terms, the average number of unemployed people for February 2006 reached 15,294, 56 more than the number registered in January 2006.
InvestinCyprus.com

InvestinCyprus.com launches the 2006 programme in Dublin

InvestinCyprus.com will be launching its 2006 Cyprus Property Investment programme in Dublin, Ireland on the 8th and 9th of March 2006.

Further details can be obtained from the Liverpool office on 00 44 151 482 5526

Central Bank of Cyprus leave interest rates on hold

At today’s meeting of the Monetary Policy Committee (MPC), the following monetary policy decisions were taken:

The official interest rates of the Central Bank of Cyprus , that is the interest rates on the marginal lending facility and the deposit facility, remain unchanged at 4,25% and 2,25%, respectively.

Following an extensive discussion, the MPC noted that the growth rate of domestic economic activity remains satisfactory, whereas domestic inflation edged higher to 2,25% in January, compared with 1,99% in the previous month.

On the fiscal front, the MPC noted with satisfaction the containment of the 2005 fiscal deficit to levels below 2,5% of GDP. At the same time, the MPC stressed that the 2005 fiscal outturn should not lead to any complacency, and that the consolidation of public finances should be maintained, underpinned by structural fiscal measures, so as to achieve the target of euro adoption on 1 January 2008.

With regard to monetary developments, the MPC took into serious consideration the significant growth being recorded by bank credit and money supply, the foreign exchange outflows observed due to seasonal factors, as well as the continuing high exchange rate of the Cyprus pound against the euro.

Taking into account all the above, and also the fact that at their recent meetings the European Central Bank and the Bank of England maintained their wait-and-see stance, while the US Federal Reserve proceeded to yet another rate increase of 25 basis points, the MPC unanimously decided to maintain its wait-and-see stance, leaving official interest rates unchanged.

Jet-to-Let - New airports for Cyprus worth 500 million Euro

New airports by 2009 at Larnaca and Paphos ‘Temporary’ solutions will ease congestion at present sites, reports Luke Moore

A 500 million Euro construction project to bring Cyprus ’ airports into the 21st century is due to begin later in 2006. With project completion dates in 2008 for Paphos and 2009 for Lanarca, new measures will be introduced at the existing airports to help manage the massive amount of tourists that visit the island over the next three years.

The first of several planned upgrades was the opening of a larger arrivals hall and luggage claim area at Larnaca earlier this week, and an increase in the number of parking spaces to a total of 710 has also been completed.

Future renovations are expected to include the acquisition of two new passenger buses, four runway stair units and twenty luggage trolleys. A Cypriot government estimate values the total renovations to Larnaca and Paphos at 5 million Euros. The Communications and Works Minister, Haris Thrasou, said that the work being done is simply ‘temporary’ to minimise problems when several planes arrive at the same time.

The contract to develop the new airports was awarded to the Hermes Consortium for 500million Euros, making this the biggest construction contract that the state has ever entered into.

The new airport at Larnaca will cover an area of 95,000 metres with an annual capacity of 7.5 million passengers. This will increase by a fifth over time. The smaller Paphos airport will cover 18,000 square metres with a capacity around a third of Larnaca.
InvestinCyprus.com

Ryanair flights to Cyprus by October 2006

Low-cost carrier Ryanair has set its sights on daily flights from Italy and Germany to Cyprus , possibly as early as October, the Cyprus Tourism Organisation (CT) has revealed.

According to CTO chairman Photis Photiou, the company is in the first stages of implementing flights from Italy and the second stage in relation to Germany .

He said the operation of Ryanair to Cyprus would be a huge boost for tourism, particularly from Germany , which is a strong market for Cyprus , the second largest after the UK . Italy is also a growing market, with 20,000 Italians visiting Cyprus each year, and the additional Ryanair flights could bring that number up to 50,000, Photiou said, adding that this would be aided by the fact Ryanair was a low-cost carrier.

InvestinCyprus.com announce the latest Customer Service Open Days

InvestinCyprus.com will be holding a series of Customer Services Open Days in London, 18, 19 and 20 February 2006.

Customers will have the opportunity to meet face to face with their own personal investment/account manager and will also have the opportunity to speak with our mortgage advisor.

Those customers who are completing in early 2006 can apply for their mortgages in London as we have flown the banks from Cyprus to negate the need for you to fly there.

Another customer services innovation from InvestinCyprus.com

Customers will also be able to choose furniture packs and discuss rentals and property management.

"Jungle Jon" to Belize in aid of Cancer Research UK

Jungle Adventure – in aid if Cancer Research UK

From the 5th February until 23rd February Jonathan Fairhurst, the InvestinCyprus.com Customer Relations Manager, will be taking time out from the office to take part in an extreme event called the Belize Challenge to raise funds for Cancer Research UK.

This is a competitive multi-discipline team expedition held in extreme conditions and split into five phases: in-country training & acclimatisation, 100km kayak race, jungle navigation over approximately 70km, five days jungle survival (surviving with nothing but the shirt on his back), during which time he’ll have to complete a series of challenges, and finished off with marathon length run, walk or crawl out of the jungle.

This is a world away from the usual challenges that he faces during office hours as part of overseeing the progress of multiple developments in Cyprus and is sure to fully test Jonathan’s physical and mental strength. The heat of Cyprus in the summer is likely to be the only similarity.

Jonathan will be completing this event as part of a 4 person team called Team Xtreme and a dedicated web page has been set up to enable anyone to make an online donation in support of their efforts for Cancer Research UK. Please click on the following link to visit the charity page -
http://www.justgiving.com/BelizeChallenge06.

Any donation you make will really mean a lot to Jonathan and to Cancer Research. You can follow the progress of Jonathan and his team throughout the event by visiting the official event web site, at http://www.belize-challenge.com/ where regular updates will be posted. The event will also be televised on Trans World Sport later in the year.