Cashing in on the Cyprus Property Development Boom

By: Kev Moore

Cyprus property development is becoming big business with investors large and small staking their claim in this expanding property market. The demand for overseas holiday homes has risen significantly in the last few decades as many Western Europeans have continued to benefit from rising house prices at home. Britain and particularly the South East of England has seen house prices soar to record heights in a relatively short time span. This has been great news for those with Equity in their homes who have cashed in by remortgaging the prime residence to finance a share in the Cyprus property development boom.

Although property prices in Cyprus have also risen considerably in the last few years they still lag behind those of Britain and her other more affluent European cousins. This may be one of the reasons that Cyprus property development continues at such a pace despite the steady increase in values. Another upside of this huge property market growth is the amount of wealth it is creating in Cyprus itself with many former farming land owners becoming overnight property millionaires. The outward evidence of all this new found wealth is manifest in the increasing number of luxury cars on the roads and also in the marinas that are filling up with a multitude of new power boats.

Not every one can be a winner however and there are indeed many losers who are unable to get on this Cyprus property development merry go round. Anyone visiting Cyprus recently can not of missed the sudden increase in the price of some foods and other basic essentials such as milk for example. To the visiting tourist eating out or dining in the hotel these increases may not be immediately obvious, but when their wages are still amongst some of the lowest in Europe the Cypriots will be feeling the difference every day. Moreover whilst many comparatively wealthy foreigners can still afford to cash in on the Cyprus property development boom most Cypriots are fast losing hope of ever being able to have enough money to buy a house in their own country.

The disparity between the average wage in Cyprus and the cost of property is astounding to say the least, even greater that that in the U.K. where first time buyers are now completely priced out of the market. There are other "knock on" effects too that are only just becoming visible, but things may have already reached the point of no return. It is hard to believe that such a huge upheaval in the countries infrastructure and economy won't reshape Cyprus in some way or another especially when the country relies so much on tourism.

Many observers who have visited Cyprus over the last few years can't possibly have escaped noticing how much quieter it seems even in the high season. Quite a few bars and restaurants outside of the main resorts lie empty giving the impression that tourist numbers are dropping. In fact the Cyprus tourist board has reported a definite decrease in visitor numbers in recent years. One theory being banded around is that the Cyprus property development boom is to blame for this ailment also. With so many would be holiday makers now owning property the hotels and apartment complexes are feeling the pinch too. Combine this with an increase in the affordability of more exotic holiday locations elsewhere and you can see where they are coming from.

Whatever you choose to believe most people will agree that such large scale development is sure to have some kind of adverse effect on the countries economy and culture. The bottom line is that no one can predict where it will end or what the deeper effects will be on Cyprus life at the end of the day. Meanwhile the rich get richer and the first time buyers slide further towards the bottom of the Cyprus property ladder with no hope of ever being home owners themselves. Cyprus is a beautiful country to live in and visit but there is a real danger it could be changed irreversibly by this ongoing Cyprus property development.

Cyprus Guide
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