Insurance News Archive
Budget airlines boosting Cyprus property
The explosion in budget airlines flying to Cyprus has seen prices on the Mediterranean island rise due to improved transport links.
Panos Englezos, chairman of the Cyprus Tourism Organisation, recently acknowledged the impact the flights have had and pledged to further increase the number of budget carriers that have routes to the island.
This will likely lead to further price increases and investors are reported to remain positive about the potential for growth.
Simon Tweddle, spokesman for Property Secrets, an independent property market analyst, said: "I think there's quite a lot of interest in Cyprus… quite a few UK property companies are starting to get a bigger interest in Cyprus.
"They're marketing Cyprus as an investment destination. I think that alone will have an effect on prices."
However, interested investors may have to move quickly to avoid missing out, according to Mr Tweddle, as "there's quite a shortage of supply, because it's a small island… there's not that much land anyway in Cyprus".
Tourism is a huge contributor to Cyprus' economy, amounting to over £1.3 billion a year or 15 per cent of the island's total GDP.
Mr Tweddle added that new airline routes have led to a recent "significant increase of arrivals from Greece, Russia and Scandinavia", which may mean that higher demand for rental and sale property will continue this reliance on tourism.
29 Jun 2007
