Budget airlines to boost Cyprus house prices

The price of property in Cyprus is set to rise this year after a low-cost airline said it would serve the island from the UK.

Low-cost airline Monarch is the first to provide cheap flights to south Cyprus, which will cost £31 each way including taxes and are due to start in March.

Experts at luxury property developers Morpheus forecast strong price growth through 2007 following rises of 20 per cent last year and rental yields of eight to 12 per cent.

Investors may also be looking to cash in on the build up to Cyprus adopting the euro, which is scheduled for January 1st 2009.

"The introduction of low fares flights is great news for current Cypriot property owners and investors alike. With improved flights from the UK, Cyprus looks set to become an even more popular tourist destination in 2007 and will open up the island to more prospective second-home buyers," commented Dani Maxton, Morpheus Investments managing director.

"Cyprus is clearly reaping the rewards of a strong and stable economy, and is set to prosper further when it begins to use the euro in two years time."

A popular holiday destination for British tourists, property investors also benefit from Cyprus links with the UK as a former colony.

"English is widely spoken on the former British colony and for the budding property investor, the land registry system is not dissimilar to that of home. Cypriots even drive on the left side of the road," Morpheus explained.

Prices for a one-bedroom apartment in southern Cyprus start from around £65,000, with a luxury villa costing up to £240,000.