Released on = June 27, 2007, 10:12 am

Press Release Author = Jimwatson

Industry = Real Estate

Press Release Summary = 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.

Press Release Body = 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.


Web Site = http://www.assetz.co.uk/

Contact Details = Assetz House, Newby Road, Stockport, Cheshire, SK7 5DA, 0845 400
7000, linkexchangeseo@gmail.com