Cyprus sees gains in prices and Russian interest

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by Gill Montia

Predictions that Cyprus would see strong growth in property prices this year are proving to be accurate.

The island joined the European Community in January and in the lead up to this historic event, overseas property investors were becoming increasingly aware of the benefits it would bring to the Cyprian economy.

Property prices rose 15% in 2007 and according to the Royal Institution of Chartered Surveyors (Rics), the rate of house price growth on the island is still outpacing that of many other European countries.

There is a high level of demand in the domestic market and the island continues to gain popularity with migrants and second home buyers across Europe.

The country’s reputation is also growing outside the traditional markets for Mediterranean property investment.

Russian investors are showing an interest, having not been as badly affected by the credit crisis as many Western Europeans.

The Rics expects the trend to continue, with interest in foreign property investment generally growing in Russia and other countries where traditionally, it has been for the few.