Ioakim Daniel, another real estate expert, agrees with Louis’ assessment. “Prices will only go up. Cyprus is becoming a top destination for retirement, investment, working and living. EU citizens prefer Cyprus to other countries because they find it safer and friendlier. There is a big interest on new properties. The relatively low taxation and low cost of living in Cyprus has also an added appeal for potential buyers, offering a full, but comparatively inexpensive lifestyle. ” he added.

All these will for sure increase demand for properties in Cyprus. But what else could push up the prices even more? VAT is definitely another factor. Cyprus has a transitional period until 2008 before imposing VAT on land but buyers of houses, e.t.c will have to pay the VAT. What does this mean?

Prices will increase gradually, at least by 50 % by 2008. But then again we have the possible solution of the Cyprus problem. A solution that could result in certain price stabilization - especially in inland residential properties. But Cyprus, after all, is only a small island with limited land resources and with the current high demand, empty land is vanishing fast, especially in prime locations near or on the sea.

The future remains to be seen but what we know for sure is that now the prices of real estate in Cyprus are going up fast and will continue going up even faster for sometime to come. So if you are considering to buy a property my advice would be to first do your own research and then find a reliable consultant to assist you in minimizing any risks of a price stabilization.

Always, keep in mind that the best investment are properties on or near the beach. Demand for these properties is very high, yielding both high resale values and high rental return.

And don’t forget to invite me to chill out together at your pool, because with my current salary I don’t think I will be able to afford to buy anything, anymore, let alone something with a s/pool and near the beach. I am waiting for your invitation!