Cyprus is one of the best-loved holiday destinations for Brits, but could you make this friendly island your home? Words Isobel Palmer
Weather-wise, there is no bad time to choose Cyprus. In four or five hours, you can be basking in nearly a full day of sunshine, even in midwinter.
Economy-wise, it’s a very different story. The worldwide recession hit the third biggest island in the Mediterranean full force in 2008, and its biggest market – the UK – had more than just the value of the pound against the euro to worry about. There were scandals about title deeds scams, and there were mortgage interest rates amongst the highest in Europe. With villas standing empty and some developers discounting a rumoured 30%, can there be any reason for British buyers to consider Cyprus?
For the cautious and the clever, yes, of course. And not just because there are bargains to be found. The island’s beauty is still drawing exceptionally high-quality developments – check out Cap St Georges, for example. When the millionaires are attracted, the rest will return. Then there’s investment in major infrastructure projects going ahead. The €350million marina at Limassol will be ready by autumn 2012, and sales of housing units there are bucking the trend.
Finally, casting light at the end of the tunnel is the RICS Cyprus Property Price Index, as reported in Cyprus Property News. Figures for the third quarter of 2010 show the drop in house prices slowing and stabilisation caused by local buyers returning to the market.
And what of the island itself? On arrival, there’s that immediate feeling of familiarity born out of centuries of contact with the UK. Much of the population speaks English, they drive on the left and their friendliness is legendary. Then there’s the crystal clear sea – you don’t need a snorkel to see exotic fish here – and an island varied and beautiful enough to inspire.
As Chris Gardner, area director for property developers Pafilia, says: “It’s true there’s this huge affinity with the UK. There are tax incentives if you’re from the UK or Ireland, there is good flight access and the airports at Paphos and Larnaca have both recently been upgraded, so the infrastructure is improving all the time.”
Although admitting August was quiet and that the UK now accounts for 45-50% of his business instead of 80%, Chris says that interest is picking up and enquiries are coming in from South Africa, Russia, the Ukraine and the Middle East to replace those missing British. “Pricing has remained pretty steady for us,” he adds.
Where to buy? Figures show prices falling across all the coastal towns, leaving only the capital Nicosia currently stable. A large commercial centre, split in two with Turkish-controlled Northern Cyprus, it can offer stylish modern living, but there are also some shabby areas and it isn’t traditionally a British haunt. Try instead the west coast – Paphos for great amenities, shops and history plus amazing sunsets; or further north in Polis – a longer drive, but quieter and less developed. In the south, Limassol is hip and happening with good nightlife. Nearby, ancient Larnaca is full of cultural and historical interest alongside its attractive promenade and beach.
Pafila is selling three developments: The Emerald, in the heart of Limassol, features one-bedroom flats from €310,000 up to €1.4m penthouses, and is aimed at young professional couples. A little more cash is required at Minthis Hills – a cool architect-designed development of villas from €1.1m in the wine region and featuring a championship golf course, tennis, nature trail and spa. Finally, there are five-star apartments and townhouses from €197,000 at Elysia Park in Paphos.
Paphos is also the home of Fitzgerald Estates Ltd, where MD Daryl Fitzgerald specializes in resale property at his eight-year-old family business. “We find it more reliable. You can see what you’re getting.” This straight-talking Australian believes people are finally waking up to the fact that prices have dropped, 30-40% he says, and there’s good choice and high quality available. In Paphos, you will find apartments from €110,000-€130,000 and villas from €250,000. He directs buyers to his newsletter for help.
Over at Antonis Loizou & Associates, based in Larnaca, Cyprus’s largest and most established agent, Peter Christofi knows a thing or two about settling into life on the island. The overseas marketing manager was brought up in England by his Cypriot parents but after working for the Metropolitan Police and running his own agency, he decided to move to Larnaca with his family seven years ago.
“My parents won’t come back,” he says with a laugh,” but we love our life here.” It certainly sounds idyllic - Peter has a Cypriot passport, his wife has a good job on a British Military Base. His children enjoy the kind of freedom their UK counterparts can only dream of. “I’m quite happy to let my 15-year-old daughter go into town, I know she’ll be safe,” he says. “Because the children attend school from 7.30am until 1pm, they can get involved in a lot of activities. My son plays football for the national team and has represented Cyprus in kick-boxing.
“The quality of living here is so high and Larnaca is quiet, like a large village, slightly behind the times and we like it like that. On the downside, the cost of living has gone up and we can’t afford what we used to – for example a pint of milk and a loaf are €2 – so my advice is to make sure you have an adequate income before you arrive.
“If you’re retired, check the exchange rate for your pension. If you’re working, don’t assume you can get a job, particularly if you don’t speak the language. All those handyman, pool man and gardener jobs are taken, so ensure you can make a living.
“I think the sunshine makes us forget to do everything we should do with solicitors when buying a property – we put on rose-tinted glasses – but it’s important to be thorough with all the paperwork.”
Other tips from the professionals include ensuring that your lawyer is on the British High Commission list before you engage him or her, and be wary of developers’ so-called guaranteed title deeds – make sure you know what they cover.
Yes, the overseas property sales figures cannot be avoided, plummeting from a heady 11,281 in 2007, to 1,761 in 2009 (Cyprus Statistical Service, Department of Land & Surveys). But visitor arrivals are more encouraging – up 5.5% year-on-year in June.
The British have been involved in the island for more than 800 years. With that kind of history, it’s odds on we’ll be here for a while yet.
Pafila, Tel: 0800 085 0870, www.pafilia.com
Fitzgerald Estates, Tel: 00357 7000 8877, www.fitzgeraldcyprus.com, www.fitzgeraldnews.com/news
Antonis Loizou & Associates,
Tel: 00357 224 77600, www.aloizou.com.cy
