Some members claimed that Cyprus, particularly Southern Cyprus, is an excellent region for investment since its economy is currently growing. Certain areas that members recommended for investments are off plan properties in Famagusta, Derynia, Paralimni, Kapparis, Paphos, Protaras, and Larnaca. These properties only had a beginning estimated price of CYP 58,000. This is even without the disadvantage of paying sourcing fees.
Moreover, there was a proposal about a development that is supported by the UK and Cypriot. There was also a suggestion to attend invitation seminars held in London. The seminars are held every 6 weeks and it will tackle about the advantages and disadvantages of investing in this market. These seminars are also held in Manchester, Leeds, Liverpool and in Dublin.
Despite the positive remarks, there were issues stated by a few members. One member said though Southern Cyprus possesses the potential for being a good area of investment, Northern Cyprus still has major land issues. One reason for this is that it is not an independent state as of today. Moreover, there is a chance of ending up empty-handed once a property is bought and a unification solution has been settled.
Aside from this, members also posted a newsletter that shows the 30 per cent decline on property sales from January up to April 2008, and it was compared with last year’s sales. This decline was due to the increase of housing prices as well as certain tax issues. This was already raised to the House Commerce Committee.
Certain problems resulting from the actions of some estate agents were also discovered with regards to the selling and purchasing of properties in this region. Some buyers have already paid for their properties but have not received the titles of their properties just yet.
Hence, the Republic of Cyprus possesses a financial system and market economy subjected to the government rule by which the service sector manages. This accounts to a GDP of 78%. The essential sectors for this are tourism, real estate, and financial services.
During the last decade, unpredictable growth rates show that tourism has been the sole source of the economy of the country. However, this remains unstable due to the region’s political instability as well as economic situation in Western Europe. On the other hand, due to proper government control, the economy of Cyprus grew to about 3.6% each year from 2000 up to 2006 and is now well above the average of EU.
Last May 2005, Cyprus united with the European Exchange Rate Mechanism (ERM2) and changed their national currency to euro just last January 1, 2008. In addition to this, during 2007, there was a fiscal surplus of 1.5% from the fiscal deficit of 6.3% last 2003. This is due to an aggressive rigorous program by the government.
As for the region of the Turkish Cypriots, it still has the perennial problem of water shortage. After experiencing drought for almost 10 years, this region received a substantial amount of rainfall during 2001 until 2004, which has somehow addressed the immediate predicament. However, during 2005 up to 2006, rainfall fell below average, and this necessitated the need for water rationing throughout 2007.