Cyprus tipped for Euro boom

History was made this week in Cyprus when the central bank met to set interest rates.

Not because it was for the first time, but because it was for the last. For the record, governor Athanasios Orphanides said the three rates set, the key refinancing rate, the Lombard rate and the overnight deposit facility, would all stay as they were, the Cyprus Mail reports.

Mr Orphanides said any changes would have "no marked difference" and the monetary policy committee backed this view. Thus the curtain starts to fall on the Cypriot Pound.

New Year's Day will be a momentous one. It often is somewhere in the European Union, with 2007 seeing Bulgaria and Romania expanding the club to 27 members. 2008 will see the number of eurozone members in the union climb to 15, with Cyprus joining fellow Mediterranean island nation Malta.

The Cypriot central bank is on record as stating that this event is as momentous as it gets, saying: "Cyprus is preparing for one of the most important changes in its history." This is undoubtedly true in economic terms at least, for the central bank statement went on to add that this brought the country into an economic zone which is home to 310 million people.

While Mr Orphanides and his colleagues seek new employment, property investors should be very busy in the country, according to worldwide real estate firm Property Abroad. Director Les Calvert said that the country was already hugely popular, stating: "Cyprus has been increasing in popularity over the last year and more people are now making specific enquiries for property in Cyprus."

Part of this, he noted, was because of a financial situation which was in fact about to change: "There are still a few properties around that are free of VAT out there so people are jumping on and trying to snap up properties where they can."

Yet Mr Calvert was convinced that the country's property scene would benefit from the euro, predicting: "When the euro comes in it will make the property market a lot more open and I expect the market to rise quite healthily."

He advised that investors would be able to make good use of "excellent" foreign currency mortgages provided by Swiss and other banks, though these were "more advantageous" for those living or at least gaining income from overseas.

Cyprus will await the new year with interest, preparing for an economic and political future tied into the heart of Europe. For investors looking to sink their capital into property in the eurozone, a new opportunity awaits.

Source: The Move Channel 

EU leaders sign EU reform treaty

Cypriot President Tassos Papadopoulos signed the Treaty of Lisbon, on behalf of the Republic of Cyprus. Foreign Minister Erato Kozakou Marcoullis also signed the Treaty. The signing ceremony of the Treaty of Lisbon takes place at the Jeronimos Monastery in Lisbon.

It began with addresses from the President of the European Commission, Jose Manuel Barroso, the President of the European Parliament, Hans-Gert Pottering and the President of the European Council, Jose Socrates.

After the ceremony, European leaders will meet for the traditional family photo and then sit at a lunch at Museu dos Coches, hosted by the Portuguese President.

This marks a new phase in providing the Union with a new treaty to respond to the challenges of the 21st century. The Commission believes that the new treaty provides significant new benefits for citizens and will settle the institutional debate for the foreseeable future. In line with the Barroso Commission's twin track approach this will allow for a greater emphasis on the issues of concern to citizens such as jobs and growth, energy and climate change and migration. The Commission calls on Member States to ratify the treaty in good time for its entry into force on 1 January 2009. The Commission has today launched a website on the Treaty that explains in an easy to read way the policy innovations and institutional reforms contained in the new Treaty

President of the European Commission, José Manuel Barroso said, "This treaty marks a watershed in the history of European integration. The Treaty of Lisbon puts citizens at the centre of the European project. After six long years of negotiation we can put institutional issues aside and concentrate all our energy on delivering policy achievements for our citizens. I call on the Member States to honour their commitments and seek to ratify the treaty in good time for its entry into force on 1 January 2009".

"This new Treaty is good for European citizens", said Commission Vice-President Margot Wallström, responsible for Institutional Relations and Communication Strategy.  It will enhance efficiency and give the Union a single voice in external relations. People will have a greater say in European policies through the reinforced powers of their directly elected representatives in the European Parliament and the enhanced role of National parliaments. The new "Citizens' initiative" will allow a million citizens to ask the Commission to present a proposal. More democracy is fundamental for a Union based on citizens' consent and will help to restore confidence and trust in the European integration process".

The Treaty of Lisbon amends the current EU and EC treaties, without replacing them. It will provide the Union with the legal framework and tools necessary to meet future challenges and to respond to citizens' demands.

The Treaty of Lisbon will bring many benefits: the new treaty will ensure European citizens have their say in European affairs and see their fundamental rights set out in a charter. The EU will be better equipped to meet expectations in the fields of energy, clime change, cross-border crime and immigration. It will also be able to speak with one voice on the international scene.

Among key planned improvements are:

a more democratic and open and accountable Union – both citizens and national parliaments will see decisions taken first hand as lawmaking discussions open up to public scrutiny. Europeans will be given the opportunity to influence proposed EU laws.

a more effective Union – through effective and streamlined institutions. Including swifter, more consistent decision-making on law and order issues, giving the EU greater ability to combat crime, terrorism and human trafficking.

more rights for Europeans – the EU's values and goals will be set down more clearly than ever before. And the charter of fundamental rights will be given the same legal status as the EU treaties themselves.

a more prominent global actor – the EU will seek more coherence between the different strands of its external policy, such as diplomacy, security, trade and humanitarian aid. And the bloc will be given a single legal personality to strengthen its negotiating power.

These improvements give the Union the capacity to deliver change, to make Europeans more secure and prosperous and to open up their opportunities to shape globalisation.

The Treaty of Lisbon, drawn up by the 2007 Intergovernmental Conference (IGC), was approved at the informal European Council on 18-19 October and will be signed by the Member States on 13 December 2007. The signature of the Treaty will be followed by the ratification process in all 27 countries. It is hoped that the new Treaty will come into force on 1 January 2009.

he new website provides user friendly and easy-to-read information in all 23 official EU languages. On its pages, readers can discover how the new Treaty will enable the EU to tackle the challenges of today's world and to promote more efficiency, democracy and transparency within its institutions. Answers to the most frequently asked questions are also available, accompanied by fact sheets explaining theme-by-theme the main changes brought about by the Treaty.

Source: Financial Mirror

Greek banks race to start Cyprus operations

Greek banks are racing ahead with plans to strengthen their presence in Cyprus with Eurobank and Piraeus already having secured Central Bank permits to start local operations, while Aspis Bank may also be interested if its holding group decides to dispose of its stake in Universal Bank.

Other Greek banks may also decide to follow in order to take advantage of Cyprus’ low taxation and double taxation treaties, as well as the presence of a significant number of multinational corporations on the island.

Such plans are expected to accelerate if a Greek-led consortium of investors wins the bid for the government’s majority stake in the Cyprus Development Bank.

The government wants to sell its 88.01% stake and the European Investment Bank the remaining 11.99% stake. The deadline for expressions of interest expired on July 17.

Alpha Bank, National Bank of Greece and Emporiki Bank already have a direct presence in Cyprus. With the arrival of Eurobank, Piraeus and Aspis Bank, the number of Greek banks will double to six and exceed the number of local banks, one of which, Marfin Popular is already controlled by Greek investors.

Eurobank expansion

The Greek banking giant EGF Eurobank opened its first branch in Nicosia on Monday, heralding the launch of full-scale banking operations with the aim of providing top level service and innovative products to corporations and high-net worth individuals.

Michalis Louis, Eurobank Cyprus CEO, told the Financial Mirror following the opening of the office on the busy Makarios III Ave., that the bank will open its second office in Limassol in the first half of 2008 and then expand to all the major towns through business centres.

Louis said Eurobank will offer all banking serviceswithout opening a retail branch network, with emphasis placed on corporate and investment banking, private banking and asset management.

“We shall have retail products for our clients, with Eurobank also targeting M&As, corporate restructuring, bridge loans and all sorts of sophisticated deals that our clients may require,” he said, adding that Cyprus will enjoy the full range of products now on offer from Eurobank Greece.

Eurobank has already recruited 30 specialised staff and will be hiring more for its expansion drive in the other major towns.

Piraeus recruitment

Piraeus Bank has continued with its intensive staff recruitment drive with the objective to hire a minimum of 130 people to be in a position to open in all towns.

Greece’s fourth largest bank is keen to attract top quality personnel in order to man its operations in Cyprus after its decision to dispose of a 8.19% stake in Bank of Cyprus to Marfin Popular Bank earlier in the year at a substantial profit.

Aspis and others

Aspis Bank may decide to expand to Cyprus directly if the Group proceeds to dispose its stake in Universal Bank (USB), in which it does not have management or board control.

Source: Financial Mirror.

Euro news fuels Cypriot property boom

Increased interest in Cypriot property listed on TheMoveChannel.com has pushed the holiday hotspot up 3 places to break into the Top of the Props Top 5!  Here we investigate just why there is so much interest in Cypriot property at present...

With its unique blend of climate, culture and clubbing, Cyprus is one of the most popular tourist destinations in the Mediterranean.  From the stillness of Ruins of Salamis to the commotion of the Ayia Napa night clubs, the Mediterranean’s 3rd largest island throngs with visitors every year, drawn to its many varied attractions.

With Euro membership just around the corner and property prices rising month-on-month this year, foreign interest in Cypriot property is showing no signs of cooling, as reflected in the movements in this month’s Top of the Props chart.  An increase in the number of enquiries about Cypriot properties listed on TheMoveChannel.com over the last month has given Cyprus a leg up 3 places to break into the exclusive Top the Props Top 5.

The Top of the Props chart reflects the share of overall monthly enquiries to TheMoveChannel.com each country receives.

Airline investment to bump up tourist numbers

With its wealth of heritage sites, perfect climate, blue flag beaches and buzzing nightlife, Cyprus attracts over 2.4 m tourists annually.  This crucial industry brings in more than £1.3 billion a year, contributing around 15% of the island’s GDP.

The issue of air travel is critical for further tourist development in Cyprus.  Panos Englezos, Chairman of the Cyprus Tourism Organisation (CTO), recently stated that new budget airline routes have resulted in a “significant increase of arrivals from Greece, Russia and Scandinavia.”  Mr Englezos has affirmed his commitment to increasing the number of budget carriers operating routes to the island.

In June, Cypriot President Tassos Papadopoulos promised to back the further expansion of the country’s tourism industry.  Speaking at the opening ceremony of the Hoteliers’ Pancyprian General Assembly in Nicosia, he said, “The government, evaluating correctly the decisive significance of tourism to the economic development of the island and the people’s welfare, maintains in its priority, interests and aims, the continued upgrading of this key sector.”  The upgrading of Larnaca and Paphos airports is due to be completed by the end of 2009.

Euro announcement sparks investor interest

With English widely spoken, a legal system based on English law, a stable economy and low mortgage rates, Cyprus is a popular place for Britons to own homes abroad.  According to the Cypriot Land Registry, 12,000 of us have already made the move and now own homes on island.

George Lacey of Lacey & Co. commented: "As prices have risen in Spain and other Mediterranean areas, Cyprus has become increasingly popular, especially with British buyers.  Prices in Cyprus are still very reasonable in comparison to Spain and Portugal, with countryside restoration properties available from around £50.000.  If you throw in the ideal climate, the fact that English is widely spoken and the country's excellent health care system, Cyprus is an ideal place for Brits to buy abroad."

Cyprus is in the middle of a housing boom at present.  According to Financial Mirror calculations, the BuySell Home Price Index has risen on average by 9.3% year-on-year so far this year, compared with 5.9% for the whole of 2006, suggesting Cypriot house price growth is actually accelerating.  Factors cited to explain this trend include July’s EU announcement that Cyprus will adopt the Euro in January 2008, a decrease in local interest rates, a lack of Cypriot housing supply and a rush by investors to beat the imposition of 15% VAT on land purchases from 1 January 2008.

Mark Bodega, Marketing Director at currency specialist HiFX, commented: “Since it was announced that Cyprus would adopt the Euro in January 08, we’ve seen interest in Cyprus almost double.  Our figures show, that whilst the numbers of Brits buying holiday homes in Cyprus has remained relatively static, this increase is largely due to an increase in investors.  It seems that whilst the Cypriot Pound has effectively been fixed against the Euro for the past two years or more, this recent announcement confirms the island’s economic maturity and the promise of a share in the spoils of the recently improved EU-wide growth story.”

However, Simon Tweddle of PropertySecrets.net urged caution, saying “I think over the next year or two we will see prices continue to rise at around 20% per annum, though investors must be careful that they only buy into quality developments and avoid areas that are in danger of becoming oversold, to protect their rental and resale strategy.  Overall the long term prospects for property prices are healthy in Cyprus and the country makes an excellent location for second home buyers.”

Source: The Move Channel

Cyprus house prices up 1.8% in July, 9.7% y/y

Residential house and apartment prices in Cyprus rose for the seventh consecutive month in July 2007, as the BuySell Home Price Index rose by 1.8% over the previous month to 129.05.

Compared with the same month of the previous year, home prices in Cyprus rose by 9.7%.

The average home price according was recorded as CYP 100,546 (EUR 171,793).

The BuySell Home Price Index was created and is updated monthly on behalf of BuySell Cyprus Real Estate by MFC S. Platis.

The Index is announced during the second week of each month and depicts the movement of prices at which residential properties are sold in Cyprus, based on the extensive BuySell Cyprus Real Estate database.

For more information on the methodology of the Index and on Hedonic Prices please refer to: The “Asking Price and Transaction–based Indices for the Cyprus Housing Market (Rebased)” by Dr. Stelios Platis and Marios Nerouppos of MFC S. Platis.

The BuySell Home Price Index constitutes the only valid gauge of the Cyprus housing market and is considered as an effective tool for home buyers, sellers and investors.

Source: Financial Mirror

Global housing boom shifts focus, Cyprus keeps up

The global house price boom continues in 2007, albeit at a much slower pace and with different set of countries.

A dramatic slowdown has taken place in several countries in Europe, despite an evident rise in the rate of price changes in Cyprus.

House prices in Estonia, 2005 and 2006’s star performer, rose only 5.68% y-o-y to Q1 2007, dramatically lower than the 77.52% y-o-y increase to Q1 2006.

Higher interest rates and an overheating market were the main causes of the slowdown. The key interest rate of the European Central Bank (ECB) has been raised nine times to 4% in June 2007, from its historic low of 2% in Nov 2006.

Other European countries that experienced lower house price changes y-o-y to Q1 2007 than in 2006 included France, Sweden, Ireland, Spain, Greece, the Netherlands, Switzerland and Portugal.

Ireland’s annual house price growth slowed to 7.44% y-o-y to Q1 2007, a deceleration from 12.07% y-o-y to Q1 2006. Apart from the higher interest rate, the heating issue on Stamp Duty also contributed to the decline.

Cyprus, on the other hand, enjoyed a 1.33% rise in the annual change in house prices in the first quarter of 2006, a figure that jumped to a 9,87% rise in the first quarter of 2007.

The U.S. house price rise also slowed to 4.07% y-o-y to Q1 2007, down from 12.78% y-o-y to Q1 2006. The Federal Funds rate has risen sharply from its low of 1% in May 2004 to its current level of 5.25%. The Fed has kept the rate unchanged since June 2006. This rate increase has meant trouble for sub-prime borrowers, leading to delayed payments and foreclosures.

Source: The Financial Mirror

Cyprus inflation up at 2.4 pct. in July

Consumer prices in Cyprus rose 2.4 percent on the year in July, up from a 1.9 percent annual rate in June, the national statistics service said Thursday.

The largest year-on-year increase came from sharply higher prices for health care costs, which were up 6.41 percent. Prices in the heavily weighted index for food and nonalcoholic beverages, were up 6.31 percent.

Education costs were also 4.87 percent higher on the year.

Source: Business Week

Cyprus and Malta in Euro boost

The past week has been particularly good for Cyprus and Matla property investors…Perhaps the biggest news has been the announcement by the European Union that the island can enter the euro currency system from January next year.

Cyprus and Malta were chosen ahead of other contenders to enter the European single currency system, in what will surely prove a big boost for the island's economy.

According to financial analysts, the move "will all but eliminate the risk of a currency crisis" by putting the weight of the European Union's economy behind the island.

According to currency specialists HiFX, the Cypriot property market will see the benefits of adopting the Euro. The company believes that the strong economy will add to the lure of the good weather and local culture.

A spokesman said the EU decision "confirms an economic maturity and the promise of a share in the spoils of the recently improved EU-wide growth story".

Property markets will continue to grow

Mark Bodega, marketing director of HiFX, commented: "We predict the property market on both islands to continue to grow due thanks to a number of reasons. British purchasers like the legal system in Cyprus as it is easy to understand-being based on the English one”.

According to statistics collated by HiFX, the number of Britons that have made an enquiry about investing in a Cypriot property has more than doubled over the past 12 months. Perhaps the lure of the good weather is proving too much - it has certainly helped boost holiday bookings in this washout British summer.

London Greek News recently conducted a telephone survey of travel agents and tour operators in London. The newspaper wanted to determine if there had been any upturn in the number of holiday bookings being made to Greece and Cyprus in the past few weeks - and the answer was a resounding yes.

Mario Demetriou MD at EuroMed Travel said "I have seen a positive move up in bookings, people wanting to book anywhere hot especially Cyprus and Greece".

With the weather showing no signs of making any improvement in the near future, it is a safe bet that there will be even more Brits booking their place in the sun.

Source: Assetz press release

Cyprus Tourism Organisation unveils incentives plan to attract investment

The Cyprus Tourism Organisation (CTO) unveiled a draft outline of its plan to attract investment in the tourist industry, to be funded jointly by the European Union and the CTO.

Speaking at a press conference CTO’s Director of Tourism Division Lefkos Filaktides said the incentives plan is part of the Strategy for Tourism Development which provides for reduction in hotel beds, and a change in accommodation patterns in order to render Cyprus a more competitive destination.

The draft plan, he explained, is expected to be finalized in October this year and by March next year the CTO will be ready to examine the first applications, with the initial funding expected to be allocated in the second half of 2008.

The coordinator of the plan Konstantinos Theos said that CTO will provide EUR 13 mln with a view to encourage investment initiatives from business, to improve infrastructure and services and upgrade the tourist product.

The plan also envisages the construction of golf courses, thematic parks, health tourism, conference centres, workshops and activities for the visitors, exhibition venues and sports facilities. It also includes investment plans to upgrade existing hotels and hotel apartments, from two to four star.

Source: Financial Mirror

Annual Property Investment Conference to be held in London

Jet to Let Magazine’s Annual Property Investment Conference will be held on Saturday 8th September 2007, at The Hilton London Metropole.

Attendance to the inaugural conference is open to anyone, and is aimed at investors wanting to take advantage of the strong returns available from well-targeted overseas property investments. Whether you are a first time investor, or building on a portfolio of properties, you will find this the ideal opportunity to mix with property experts and like minded investors.

 

The conference is a must for anyone seeking to maximise their returns whilst minimising risk. Profit from the opportunity to learn from and question leading experts in the industry, and network afterwards with our expert speakers and conference attendees.

 

The conference programme for the day is:

- The power of leveraged finance: how to make 1000% Return on Investment over 2 years
- Overseas property investment strategies: how to best achieve your financial goals and targets
- Risks: how to control risk and limit the downside
- How to use the fluctuations in currencies to increase returns
- Property management and lettings strategy: the do’s and don’ts

- Around the world in 2 hours. A look at the property investment scene, latest areas and how to capitalise on opportunities

 

Your Personal Investment strategy

 

Additionally to these seminars, there will be an opportunity for networking and discussions with advisors, as well as the chance to book a FREE personal property investment consultation with a leading expert.

 

-  The consultations will cover

-  Raising finance for investing

-  Personal property investment strategy

 

Tax minimisation strategies to reduce liabilities

 

These FREE, no obligation consultations must be pre-booked. Availability is limited, so please book early to avoid disappointment.

 

Special Offer

 

The price to attend Jet to Let Magazines Property Investment conference is just £97 (plus VAT) per person.

 

However in addition to this low price, we are also running a Special Offer: £149 (plus VAT) for 2 people, A saving of over £50.

 

To book your place at Jet-to-Let Magazine’s Annual Conference, please either:

Telephone: 08000 277 336

Email: conference@jet-to-let-magazine.com

Web: www.jet-to-let-magazine.com

IKEA Cyprus to open in September

The budget furniture store IKEA will open its first outlet in Cyprus on September 5 within the busiest commercial square mile on the outskirts of Nicosia, where other store openings are expected the same month in what is probably going to be the biggest shopping mall on the island.

Vassilis Fourlis, president of the operator of the furniture franchise that already has two IKEA stores in Greece, will be in Cyprus for the inauguration of the 22,000 sq.m. store strategically located within the ‘Mall of Cyprus’ at the Shacolas Emporium Park that will include retail stores, clothing shops and food outlets.

Fourlis will also be here next week for a media event and to introduce the IKEA catalogue that will be distributed in the wider market.

Although IKEA products can no longer be placed in the ‘low cost’ category, they are known for their functionality, simple designs and affordable prices.

The Fourlis group officially announced in October 2005 that it was to build the first IKEA store in Cyprus, through its House Market subsidiary. It was initially expected to commence operations by June this year, but has been recruiting local staff for training since last year.

Fourlis’ flagship store with a floor space of 20,000 sq.m. opened in Thessaloniki, followed by a second 25,000 sq.m. IKEA store near Athens airport last year. A second Athens outlet is expected to open in September and the Group also plans to open a new IKEA outlet in Bulgaria in 2008.

The cost of establishing the Cyprus and Athens stores is estimated at EUR 40 mln, while the annual turnover of House Market following the full operation of all three stores is expected to top EUR 300 mln.

IKEA Cyprus is expected to generate annual sales of EUR 40-50 mln, Vassilis Fourlis told Reuters in an interview last October 2006, while the sale of a 20% stake in Kotsovolos to Dixons Group is estimated at contribute EUR 32 mln to Fourlis Group earnings.

The IKEA opening is regarded as a welcome move in Cyprus, after the IKEA-owned Habitat franchise in Nicosia closed unceremoniously last December due to troubles at the Greek franchise operations.

At the time of closure a Habitat statement read: “It is with deepest regret that we confirm Habitat’s franchise partner Franco Import has come into financial difficulties leading to the closure of four stores – three in Athens and one in Cyprus – on December 11. This situation has been triggered by an external supplier to Franco Import, not by Habitat.”

The statement went on to say that Franco Import and Habitat UK Limited have been partners for almost ten years and that the company was, “saddened that Franco is facing challenging circumstances.”

Though the companies are owned by the same conglomerate, the opening of two IKEA superstores in Athens and Thessaloniki is said to have hit Habitat hard in Greece, with an Athenian newspaper reporting that it was only a matter of time before Habitat got into trouble.

Habitat is owned by the Ikano Group and operates as an independent commercial legal entity from the IKEA Group.

The Habitat store in Nicosia reopened its doors to the public briefly in March in an attempt to get rid of its outstanding stock and satisfy previous orders.

The store has since been taken over by the TAG Designer clothing company that already operates a store on Zena Gunther road.

Source: Financial Mirror  

Emerging markets investment 'surprise'

New research from Holidaylettings.co.uk has revealed that emerging markets dominate the overseas property investment rankings…

With yet another interest rate rise in the bag for the banks, expect the British obsession with property investment to take another step towards the nearest airport and the newest investment hotspot.

Holidaylettings.co.uk has seen an abundance of holiday homes being advertised in new locations since the start of the year and now offers accommodation in 100 countries.

New countries on the holiday home map: Jan – June ‘07

1. Croatia

2. Hungary

3. Slovenia

4. Mexico

5. Argentina

Countries adding greatest volume of holiday homes June: ‘06 - June ‘07

1. Spain

2. France

3. Italy

4. Portugal

5. Cyprus

Argentina and Brazil come to the fore

New self-catering holiday offerings include eagerly awaited Eastern Europe entrants Poland, Estonia and Slovenia and a South American influx, most notably in México, Argentina and Brazil. Dubai has come into its own in the last 12 months with its offering of self catering accommodation as an alternative to hotels. With many new developments underway there the number of self catering options is expected to grow.

Traditional holiday home favourites France, Italy, Spain and Florida, where tourism and holiday property are already so well established are still attracting investors, a growing number of which cover their costs by letting them out to holidaymakers. Over 2,000 Spanish holiday properties have been added to the site in the first six months of 2007, compared to only 1,200 added in the same period last year.

For those seeking the laid back lifestyle and temperate climate found in Spain, but away from the over development of the Costas, Portugal has experienced the fiercest holiday home growth in Western Europe in the last year. The number of Portuguese holiday homes available to let through Holidaylettings.co.uk has increased from 300 to just under 1,000 in the last 12 months, an increase in excess of 300%.

Europe’s ongoing attraction

Another destination showing investment promise and working on attracting more holidaymakers is Cyprus. The number of holiday home rentals in Cyprus has more than doubled since June last year, supporting figures from the Cypriot Land Registry which reveal that 12,000 Britons now own homes in Cyprus.

“These figures demonstrate the ongoing attraction of Western Europe as an investment location and how, with the case of Portugal, with its easy access from the UK it still has property investment potential,” says Ross Elder, MD of Holidaylettings.co.uk. “With yet more investment in Eastern Europe and South America it will be interesting to monitor how these markets develop in the next couple of years.

“It is vital for investors that there is a sufficient tourism draw and affordable flights are available in order for holidaymakers to be drawn to these areas. No matter how many developments are built, renovations completed or holiday homes advertised there needs to be a demand from holidaymakers for self catering accommodation.”

Source: The Move Channel

Cyprus and Malta get go ahead to start using euro next year

BRUSSELS, Belgium: The European Union on Tuesday gave Cyprus and Malta final approval to start using the euro next year, taking to 15 the number of nations sharing the currency.

Finance ministers voted to allow the two Mediterranean nations to join the currency zone on Jan. 1.

They also set an exchange rate of one euro to 0.585274 Cypriot pounds and 0.4293 Maltese lira when the two countries swap their existing coins and banknotes for the euro.

Cyprus and Malta will bring just over 1 million people to the 318 million who now use the euro. Their economies account for only 0.2 percent of euro-zone gross domestic product.

Both joined the EU in May 2004. Only one other country that joined the EU at the same time — Slovenia — has so far adopted the euro.

The largest of the EU newcomers — Poland, Hungary, the Czech Republic, Romania and Bulgaria — have yet to set a date for euro entry. Estonia had originally planned to join next year but will delay membership as its growing economy sees inflation surge, a problem that has also slowed Latvian and Lithuanian plans. Slovakia is scheduled to join in 2009.

Cyprus and Malta worked hard to meet the strict EU economic standards for euro nations, with Cypriot workers agreeing to lower wage demands that could boost inflation while Malta paid off debt to cut its budget deficit below the EU maximum of 3 percent of gross domestic product.

EU Economic and Monetary Affairs Commissioner Joaquin Almunia said he recognized the effort they had made to fulfil the entrance criteria.

To keep their shared currency stable, euro nations are also supposed to keep overall public debt below 60 percent of gross domestic product.

However, even the largest euro economies have had trouble with these rules and euro candidates can be accepted if they can show that they are on track to meet these limits.

Cyprus became part of the EU a month after Greek Cypriots voted against a United Nations plan that would have led to reunification with the breakaway Turkish Cypriot state in the north of the island. EU officials have warned Turkish Cypriots against starting to use the euro as their currency without approval.

Source: International Herald Tribune

July 8 agreement

Government Spokesman Vassilis Palmas has said that the Greek Cypriot side has no indication that Turkey or the Turkish Cypriot side have any will to begin a dialogue to solve the Cyprus problem, noting that if Turkey believed that "at this or any future stage there should be no movement, then things will be difficult." Palmas said if there was "any political will on behalf of Turkey to create the conditions to move forward regarding the Cyprus problem, then there is a possibility to make progress through the 8 July 2006 agreement." 
 
Replying to questions, Palmas said "we have repeatedly proven our intention and will to create circumstances and conditions for progress regarding the July 8 agreement." "From thereon, in order to create the conditions for improvement and progress regarding an agreement reached between the Greek Cypriot and the Turkish Cypriot side and the United Nations, the positive will of both sides is necessary," he pointed out.
 
Asked about the July 8 agreement in relation to the forthcoming elections in Turkey, Palmas said that "due to the fluid political situation in Turkey there is immobility regarding the July 8 agreement." "We, the government, have said many times that the key is in Ankara and in Turkey," the Spokesman added. 
 
Source: Cyprus News Agency 

Presidential elections

The three parliamentary parties that support the government of President Tassos Papadopoulos have continued their separate discussions, as prospective candidates ponder on announcing their bid for Februarys presidential elections.

The main coalition government partner left wing AKEL voted Wednesday by an overwhelming majority to propose its General Secretary Demetris Christofias, President of the House of Representatives, to the party extraordinary congress on Sunday as its candidate for the presidency. The congress will take the party final decision on the matter.

The centre right Democratic Party (DIKO), formerly headed by Papadopoulos, decided unanimously on Wednesday to back Papadopoulos in his bid for re-election, which he is expected to announce sometime soon.

The other coalition partner, Social Democrats Movement EDEK, ratified on Wednesday a Central Committee decision to back Papadopoulos in February next year.

So far there are only two candidacies for the presidency. Former Foreign Minister Ioannis Kasoulides, who is backed by the main opposition party Democratic Rally, and former Agriculture Minister Costas Themistocleous.

However, it has become all but clear that Christofias and Papadopoulos are set to announce their respective candidacies in the days ahead.

AKEL Central Committee backed Christofias candidacy by 85 votes in favour, 12 against and three abstentions, party spokesman Andros Kyprianou said at midnight Wednesday, after an eight hour marathon Committee meeting.

He said the party Political Bureau recommendation to contest the elections with Christofias, on behalf of the three coalition partners, was presented to Wednesdays meeting, in addition to party grass roots decisions about the elections.

AKEL participates in the government with four ministers (foreign, interior, communications and health) who are widely expected to leave their posts, should Christofias announce his candidacy for the presidency.

DIKO President Marios Karoyian told the press last night after a Central Committee meeting that Papadopoulos candidacy on behalf of the three coalition partners would all but ensure only one round of elections, that would certainly result in a resounding victory of the tri-partite coalition.

EDEK spokesman Demetris Papadakis said that the party Political Bureau reviewed the outcome of local and district party meetings and ratified the Central Committee proposal to back Papadopoulos.

Source: Cyprus News Agency

Cyprus - Egypt - road agreement

Cyprus and Egypt have signed an agreement on International Road Transport of Passengers and Goods, to further cement relations between the two countries and open the doors to foreign trade for both countries. The agreement was signed by Cypriot Minister of Communications and Works Harris Thrassou and Egyptian Minister of Transport Mohamed Loutfy Mansour.

Thrassou said the signing of this agreement “on road transport will strengthen furthermore these relations and promote the cooperation between the two countries. I am convinced that this is only part of a new era of fruitful cooperation between Egypt and Cyprus”. He also said that “Cyprus and Egypt have always been excellent neighbours since ancient times ever since our region was the center of the civilization” and during their discussions, they evaluated issues on Merchant Shipping, Road Transport and Ports and established a framework for developing our cooperation.

“Cyprus being a member of the European Union acts as a platform for nearby friendly nations such as Egypt to access the EU market in a more efficient and profitable manner”, he concluded. Mansour said “our purpose here is to further cement the relationship that we have between our two neighbouring and brotherly countries.

Source- Cyprus News Agency

Cyprus to maintain robust growth in 2007-2008

PricewaterhouseCoopers’ latest economic analysis points to continued strength in the Cypriot economy during 2007 and 2008. The economy is expected to grow by 3.9% in 2007 and 3.8% in 2008, easily outperforming the Euroland average economic growth rates in both years.

Once again, the contribution of the domestic economy is expected to outweigh that of the export sector in both 2007 and 2008.

The PwC report argues that domestic demand is likely to continue to be the main driver of overall growth despite investment growth moderating somewhat in 2007. Consumer spending in particular is likely to perform well over the next two years owing to relatively low interest rates and favourable labour market conditions.

On the external sector, the report finds that Cyprus’ exports performance is likely to improve slightly in 2007, despite a slightly slowing pace of growth  in Cyprus’ main export markets, namely the UK and Euroland.

The report suggests the Euroland economy achieved a healthy pace of growth in 2006, growing by its fastest pace since 2001. However, some moderation is anticipated in 2007 owing to the lagged effects of past European Central Bank interest rate rises, a further possible appreciation of the euro and tighter fiscal policy in a number of member states. The pace of economic growth in the Euroland is expected to average a reasonable 2.5% in 2007 before slowing to 2.2% in 2008.

Euroland inflation is expected to average 1.9% in 2007 and the ECB is likely to raise interest rates by a further 25-50 basis points before the end of the year, in order to contain price pressures and anchor inflation expectations.

Yael Selfin, Senior Economist at PricewaterhouseCoopers, said that, “the economic outlook for the Cypriot economy remains positive and the goal of adopting the euro in 2008 is looking increasingly attainable. However, inflation deserves vigilance over the rest of the year, given the upside risks from robust domestic demand, excess credit and the possibility of further oil price rises.”

Source: Financial Mirror

Orams case goes to European Court of Justice

Following a ruling by the High Court in London last year, which was hailed as a victory for Linda and David Orams, the high profile Apostolides case has now been sent to the European Court of Justice.

The London judgment overturned a ruling from the Nicosia court in October 2004, which found for the Greek Cypriot former owner of the land (Meletios Apostolides), and ordered the Orams to pay compensation to Apostolides, to demolish their £160,000 villa and to return the land to him (which would have resulted in them losing their own home in the UK). Mr Justice Jack ruled that Article 10 of the EU Treaty of Accession of Cyprus to the EU meant that the Nicosia judgment was unenforceable in England and, furthermore, that the jurisdiction of the Republic of Cyprus does not extend to property located in the TRNC (in "de facto control" of the north).

While the judge gave Apostolides permission to appeal, he also ordered him to pay 75% of the Orams' £863,000 costs. London's Court of Appeal said that the European Court of Justice in Luxembourg must give guidance on the case before the UK can decide whether to enforce a demolition order, according to Bloomberg.

Nicholas Phillips, the UK's most senior judge, was quoted by the analyst as saying: “The principle issues of this case are of importance to some 14,000 people who claim to own homes in Northern Cyprus, and also to Greek Cypriots who lay rival claims to the ownership of those houses.”

TRNC solution ‘recognised’

While the so-called Turkish Republic of Northern Cyprus is not recognized by the EU, recent reports suggest that its solution to land dispute, the Immovable Property Commission (IPC), is about to be officially accepted by the European Court of Human Rights (ECHR). Hasan Erçakıca, a spokesman for the Turkish Cypriot president told the Turkish Daily News (TDN) that a landmark ruling, whereby an exchange formula was used to deal with Greek Cypriot complaint, “could enhance the international legitimacy of the property commission in the north”. He added that property disputes can only be settled “not through courts but through negotiations between the parties involved”.

Thus far, the commission is reported to have dealt with property claims ‘through compensation and restitution’ but Greek Cypriots have always opposed the exchange of land – a solution outlined in the rejected Annan plan. This plan has been updated to include the payment of a small proportion of the compensation in addition to the exchange of land.

With Ankara now awaiting the ECHR’s official recognition of this solution, TDN highlights a report in Greek Cypriot daily Politis which claims that the ECHR has sent letters to Turkey, a Greek Cypriot and the Greek Cypriot administration supporting the exchange formula solution; with official approval expected in ‘upcoming days’.

Source: OPP

Cyprus property market ‘booming’

While some investors are concerned about Spain and other look to exotic and uncharted territory, those looking to invest in property on the island of Cyprus continue to do so in a booming market.

This year is certainly on course to be another property boom year. Cypriot newspaper the Financial Mirror has stated that 2007 is on course to see 20 per cent property value appreciation. Part of the trend is due to a rush to beat the imposition of a new 15 per cent VAT land tax on January 1st 2008, but the tend is a longer term one and some might observe that the imposition of a land tax indicates government recognition of this, suggesting it believes it can pick up some useful revenue without doing undue damage to the market.

Already, the paper notes, the government is making good money out of the property boom, with capital gains tax receipts amounting to the equivalent of $173 million in the first five months of 2007, compared with $62 in the same period in 2006 (Cyprus adopts the Euro in the new year).

However, the paper states, Solomon Kourouklides, Chairman of the Cyprus Real Estate Agents Association believes the increase is also due to high amounts of property buying from overseas investors in coastal areas.

Some might suggest that there is a negative element for native Cypriots, in which locals are priced out of the market by overseas speculators. What in fact is happening, according to an article in the Cyprus Mail at the weekend, is that the sector is helping the economy at a time when other aspects that involve foreigners - such as tourism - are in decline. Moreover, it points out, mortgage demand is rising and it is the capital Nicosia, not coastal towns such as Limassol and Paphos, which are seeing the greatest demand of all.

As the paper puts it: "This is good news, making the market less susceptible to the whims of foreign buyers, who can abandon Cyprus as easily as they came. It also means that local buyers - including first-time buyers - are finding a way to lock into the property ladder, securing a stake in a sector of the economy that is expected to see continued steady growth." In short, investors can certainly feel no guilt about buying into the market, or fear being resented for doing so.

Instead, the paper adds, the amendments that actually need to be made to ensure the market stays healthy are things like faster issuing of title deeds and better redress for builders if work is not up to standard.

Notwithstanding those concerns - not unique to any one country - Cyprus remains a country with further growth potential. Part of that lies in the continuing attraction of the country for its climate, history and culture, while the forthcoming adoption of the Euro could provide the greatest boost, by providing the kind of stability that will encourage investment and establishing the country in the eyes of Europe as part of the social, political and economic mainstream.

Source: Assetz  

Eurozone “very significant” for Cyprus, says Papadopoulos

President Tassos Papadopoulos has described as “very significant” the entry into the eurozone on January 1, 2008, saying that this confirms that the government’s fiscal policy has been a success and the local economy sound enough to meet EU criteria for the euro area.

“This is an important landmark for Cyprus and I believe that once we adopt the euro, prices will be rounded up downwards as opposed to upwards,” he said on departure for the European Council meeting which will deal with Cyprus’ and Malta’s accession to the euro area.

He reiterated that this was achieved with the concerted effort of all the social partners, adding that government services will monitor the change of currency to ensure that there is no exploitation of prices.

Papadopoulos recalled that the Cyprus pound will be locked to the euro in early July and the exchange rate will not be known before that.

Referring to the EU summit that starts Thursday, he said this was “very important” as it will review reforms in the European Treaties.

“We hope that it will be possible to reach an agreement that will facilitate the smoother running of the EU, which so far has been governed by the provisions of the Treaty of Nice,” he said.

Papadopoulos also said that the current trend among the 27 members seems to indicate that existing Treaties are set to be promoted but no new treaty is likely to be approved.

“There are several differences and everybody understands that if the current German EU presidency does not succeed in clinching such an agreement, then things will be more difficult in the future,” he concluded.

Earlier Wednesday the European Parliament approved by an overwhelming majority of 585 votes in favour, 14 against and 90 abstentions, a report by a German Euro MP which gives the green light to Cyprus’ entry into the euro area.

Speaking during the debate at the Parliament, German Minister of State for Europe Gunter Gloser and EU Commissioner for Economic and Monetary Affairs Joaquin Almunia welcomed Cyprus and Malta, saying both countries meet the criteria set out by the Union. 

Source: Financial Mirror

EIU expects 3.4% growth for Cyprus in 2007

The Economist Intelligence Unit (EIU) maintained its Cyprus GDP growth forecast at 3.4% and 3.6% for 2007 and 2008 respectively, according to the Sharelink Securities & Financial Services update.

Low growth in the tourism sector will be partly offset by continued strength in exports of business services such as accounting. Investment growth is likely to remain strong as a result of ongoing works to upgrade the two airports, while work to construct new marinas may get under way in 2008, if the government can speed up the tender round.

Government consumption growth is also expected to accelerate, driven by the forthcoming presidential election in February 2008. According to EIU, private consumption growth will be supported by continued strong credit expansion and a fall in commercial (as opposed to official) lending rates from 2008, as local banks respond to competition from other Euro area banks. Credit growth will also help to maintain demand in the construction and retail sectors. The British agency points out that the main risk to this forecast is a sudden fall in credit growth; However it says, this seems unlikely, given that banks are enjoying strong profit growth, commercial interest rates are expected to fall further, and overall lending as a share of GDP is probably lower than in countries such as the UK and Spain.

EIU’s central forecast about interest rates is that the European Central Bank (ECB) will raise rates twice more before the cycle comes to an end at 4.25%. Rises above 4.25% would only occur if growth were to continue as strong as in 2006 and show no sign of slowing by the end of 2007. However, EIU says, Cypriot commercial lending rates, which are higher than in the Euro area, should continue to fall from 2008. The final convergence of Cyprus and ECB rates will happen in the last two months before the adoption of the Euro.

The EIU says that the Cyprus pound is already approaching the central parity rate. Under the planned schedule the exchange rate with the Euro will be locked in July 2007; mandatory dual pricing in euros and Cyprus pounds will run from September 2007 until June 2008; and the Cyprus pound will cease to be legal tender in February 2008. According to EIU the Euro is forecast to strengthen against both the US dollar and sterling on average in 2007-08.

Source: The Financial Mirror

Cyprus house prices up 9.6% for year in April

Residential house prices in Cyprus rose by 1.1% over the previous month in April, according to the BuySell Home Price Index, as the index reached 122.44 and brought the average home price in Cyprus to CYP 95,394 (EUR 196,680). Compared with the same month of 2006, prices rose by 9.6% in April, slightly lower than the 9.9% increase recorded in March. Data on building permits suggest that demand in Cyprus is being driven by residential customers and is being fuelled by both local and foreign buyers. The number of building permits authorised rose by 7.7% in 2006. The hedonic BuySell Home Price Index, which takes into account changes in the quality of housing, was created and is updated monthly on behalf of BuySell Cyprus Real Estate by MFC S. Platis. The index is announced during the second week of each month and depicts the movement of prices at which residential properties are sold in Cyprus, based on the extensive BuySell Cyprus Real Estate database. The BuySell Home Price Index was rebased in September 2005, in order to keep the Index updated with respect to the most recent quality characteristics of the housing market in Cyprus.

Source: Financial Mirror

Cyprus meets Eurozone entry criteria

EC projects 3.8% GDP growth in 2007 The forecast issued by the European Commission on the Cyprus economy data are set to pave the way for the entry of the country into the Eurozone as planned on January 1, 2008.Based on the forecast for 2007 and 2008 coupled by the fact that Cyprus meets the Maastricht criteria, it is safe to assume that the EC report due on May 16 will be positive and pave the way for a positive decision by the ECOFIN on June 21, 2007 for Cyprus’ entry into the Euro-zone club. Malta is also set to join the Eurozone, increasing the number of member states to 15 out of 27.Prospects for 2007 and 2008 GDP is projected to continue growing solidly at 3.8% in 2007 and 3.9% in 2008, still driven by domestic demand, which would contribute around 4 percentage points to GDP growth. Increasing disposable income, supported by sustained wage and employment growth, will keep private consumption growing at still high rates, albeit lower than this year on account of rising interest rate expectations. Investment should remain robust and continue growing just below 5% per year until 2008. This expansion of investment will be mainly driven by construction, underpinned by a strong demand for dwellings by non-residents and by other large infrastructure projects. Furthermore, confidence effects linked to the prospects of joining the Euro area should also sustain total investment through higher investment in machinery and equipment. Although the projected deceleration in private consumption should have a moderating impact on imports, higher investment in equipment should keep imports growing at high rates until 2008. Labour market, costs and prices Labour market conditions remained tight, at nearly full employment, with unemployment at around 4¾%. In line with buoyant economic activity, employment will continue growing at around 1½% per year until 2008. However, higher participation would keep the unemployment rate around its current level. Higher participation by foreign workers, combined with moderate wage growth in the public sector, should also keep wage pressures relatively contained, in spite of tight labour market conditions. Since productivity growth is expected to rise by just above 2½% by 2008, unit labour costs will rise, but at lower rates than in the recent past. Public finances The general government deficit for 2006 is estimated at 1½% of GDP, about ½ percentage point of GDP lower than the target in the Budget Law. The initially budgeted ¼% of GDP from temporary revenues from building permits has not materialised, but this was more than compensated by higher-than-expected tax revenues associated with the buoyant performance of the real estate sector as well as improved tax administration and collection. The structural balance (the cyclically-adjusted balance net of one-offs) improved by around 1¾% of GDP in 2006. The 2007 Budget Law targets a deficit of just above 1½% of GDP. No one-off measures are planned. The fiscal adjustment is still mainly driven by tax revenues, partially offset by the reduction of EU funds. Total revenues are projected to rise by almost ¼% of GDP. However, expenditures will remain unchanged in terms of GDP, as the reduction in the interest payments is offset by higher social transfers. The Commission services project an almost unchanged deficit (1½% of GDP), despite the better-than anticipated outturn for 2006, to account for the announced package of social transfers amounting to about ¼% of GDP. In structural terms, the fiscal adjustment in 2007 is expected to be marginal, which would correspond to a broadly neutral fiscal stance.

This also reflects the deterioration of Cyprus’ net position vis-à-vis the EU budget as temporary compensating grants associated with EU accession came to an end in 2006, and are only partially compensated in the 2007 budget. In 2008, on a no policy- change basis, the deficit is projected to inch down to slightly below 1½% of GDP. The debt-to- GDP ratio is projected to keep on a decreasing path, attaining about 55% by 2008, driven by the planned reduction of deposits with the central bank.

EU Presidency: Cyprus to adopt the Euro based on same criteria

The German EU Presidency reaffirmed that the decision regarding the Republic of Cyprus’ accession to the Eurozone will be based on the same criteria that had been applied to all countries.

A written statement by the German Presidency said ''the Presidency advocates that the decision whether the Euro can be introduced in Cyprus will be based exclusively on the criteria laid down in the EC Treaty, as it was the case with all previous demands of countries requesting to join the Eurozone”.

Germany’s Minister of Finance Peer Steinbrueck had reportedly said that Cyprus' accession to the Eurozone might have political repercussions and thus should be discussed on a political level. Cyprus expects to enter the Eurozone on 1st January 2008.

Source: Financial Mirror

Moneycorp opens office in Cyprus

Moneycorp is continuing its ambitious international expansion with the opening of a new office in Cyprus. The Cyprus property market is proving to be one of the fastest growing property markets within Europe, with people buying homes and real estate for investment purposes.

The Cyprus office is Moneycorp’s fourth new overseas office in the last two years. It will offer local clients and local-based expatriates with a full range of services, including account management, advice and support. It will allow Moneycorp to further develop relationships with professionals in the Cyprus property and migration sectors.

Vasilios Dimarakis, Head of Overseas Operations says, “The property market in Cyprus has been something of a phenomenon in recent years. The market is now showing stable but healthy growth with the promise of more good things to come as the country prepares to adopt the Euro currency on 1st January 2008”.

“By opening a new office in Cyprus we are able to provide local support and assistance to vast expatriate communities and our local referring partners. Overall, the expansion underlines our commitment to fully capitalising on this growing market.”

Moneycorp is a trading division of the TTT Moneycorp Group, which was established in 1979 and last year traded in excess of GBP7.5 bln in currencies. The Company is part-owned by The Royal Bank of Scotland Group and has been accredited to ISO 9000 quality assurance since 1996, a unique achievement in the foreign exchange industry.Moneycorp is the UK's leading foreign exchange company and provides tailored foreign exchange services to help individuals save money on their overseas currency transfers.

Source: Financial Mirror

Cyprus official interest rates remain unchanged

Cyprus Monetary Policy Committee (MPC) decided unanimously to leave the official interest rates of the Central Bank unchanged. The official interest rates of the Central Bank of Cyprus remain unchanged at 4.5%. Central Bank Governor Christodoulos Christodoulou said that international and domestic developments have not substantially changed since the last meeting of the MPC on 23 February 2007, so as to warrant at this juncture a change in domestic interest rates.

He said that the global economy is continuing to exhibit robust growth with inflation hovering at relatively low levels.

He added that a similar picture can be drawn for the domestic front, with decelerating inflation and satisfactory growth rates. In particular, domestic inflation receded to 1.49% in March compared with 3.23% in the same month of 2006.

For the first quarter of 2007, inflation reached 1.53% compared with 2.72% in the corresponding period of 2006. Despite the significant inflation deceleration, the MPC expressed its concern about the sizeable expansion of money supply and credit to the private sector, which contribute to the widening of the trade deficit.

The MPC, taking into account all the above as well as the fact that most of the major central banks maintained their interest rates unchanged at their recent meetings, decided, unanimously, to adopt a wait-and-see stance at this juncture, leaving the official interest rates of the Central Bank of Cyprus unchanged, a Central Bank press release said.

Source: Financial Mirror

Cyprus stamp duty ceiling at CYP 10,000

The Cyprus House Finance Committee has decided to lower the ceiling for stamp duty on agreements made in Cyprus to CYP 10.000 or EUR 17.000 per contracts above CYP 25 mln or EUR 43 mln in a move widely seen as improving Cyprus’ changes of attracting foreign companies to book deals through the island. The government had initially suggested a cap of CYP 50.000, but the House decided to force the ceiling lower to CYP 10.000 to attract more deals. The government had earned a total of CYP 23 mln in 2006 and 2005 from such deals compared to CYP 20 mln in 2004.

Source: Financial Mirror

Cyprus house price inflation accelerates to 9.9% in March

Residential house price inflation in Cyprus has accelerated, rising by 9.9% compared with the year earlier in March, having risen by 9.4% in February according to the BuySell Home Price Index prepared by MFC S. Platis. This marks the sixth consecutive month of a rise in year-on-year prices. If it continues at this pace, house prices will record a faster rise in 2007 than in 2006, when the BuySell Index recorded an increase of 6.6%. Compared with the previous month, home sale prices in March rose by 0.8% compared with February. The BuySell Home Price Index reached 121.13, bringing the average home price in Cyprus to CYP 94,373 (EUR 162,430). The BuySell Home Price Index was created and is updated monthly on behalf of BuySell Cyprus Real Estate by MFC S. Platis. The Index is announced during the second week of each month and depicts the movement of prices at which residential properties are sold in Cyprus, based on the extensive BuySell Cyprus Real Estate database. The BuySell Home Price Index was rebased in September 2005, in order to keep the Index updated with respect to the most recent quality characteristics of the housing market in Cyprus. For more information on the methodology of the Index and on Hedonic Prices please refer to: The “Asking Price and Transaction–based Indices for the Cyprus Housing Market (Rebased)” by Dr. Stelios Platis and Marios Nerouppos of MFC S. Platis.

Source: Financial Mirror

GB Airways increases flights to Paphos

British Airways franchise partner GB Airways has increased its summer service from Paphos to reach a total of 19 weekly flights to London and Manchester.In the peak season, the airline will operate up to twelve flights to London Gatwick, having launched the service in winter 2003 with just two flights a week. It is now also operating a daily service to Manchester.Alan McIntyre, commercial director GB Airways said, “flights from Paphos to London and Manchester have proved very popular and by increasing our service we are giving our customers the flexibility to travel when they want, still at a value for money fare”.One-way fares from Paphos to London Gatwick and Manchester currently start at CYP 50 plus taxes for travel between April 15 and 29 June 29 for bookings made by April 20. After that regular fares start from CYP 60 plus taxesThe Manchester service offers high quality buy-on board food and drink.The airline recently launched GB Privilege, an email service offering overseas homeowners a range of benefits, with the aim to save time, money and make the planning of regular trips abroad easier.

For more information visit www.gbairways.com/gbprivilege

Source: Financial Mirror

Cyprus March inflation unchanged at 1.5% on year

Consumer prices in Cyprus rose 1.5% on the year in March, unchanged from February's rate, the statistics service said Thursday. Food and beverages led the increase with a 5.6% increase, while health and education prices recorded a 5.4% and 4.9% increase, respectively. The transport sector posted a 2.7% decline. On a monthly basis, consumer prices rose 1.2% in March from February, mainly due to higher prices for clothing and footwear following the end of winter sales. Prices for petroleum products, some fresh fruit and poultry also rose, the service said.

FREE Cyprus property investment seminar 23rd April 2007 - 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 on Monday 23rd April 2007 in Central London at 7pm, examining the case for investing in Cyprus.Cyprus is one of the best places for the jet-to-let industry, and this looks set to continue. Advantages of investing in the Cypriot property market include the low cost of living and high standard of living as well as the booming property market, which is offering existing investors strong rental returns.

Our evening seminar will present the case for Cyprus, and give compelling economic reasons to consider purchasing a property in Cyprus, whether for investment purposes, a second home or to retire. We will also highlight some of the most favourable regions of the Island for investment and strong capital growth.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 available through InvestinCyprus.com