Airline likely to spur on Cypriot house prices
The Cypriot tourism market is set to be boosted by an influx of British tourists on the back of new budget flights operating from London Luton Airport.
The island has long been a popular destination for Britons looking to holiday in the sun, but limited airline service has hampered tourist growth from reaching its full potential.
Now Monarch airline's announcement that it will offer low-cost flights to the island will open up tourism to new markets.
This is expected to have a ripple effect on the property market, which already showed strong growth last year. House price inflation rose by over CYP 5,000 during 2006, and an influx of foreign buyers looking for second homes would drive that growth higher.
The island currently has a stable economy with interest rates of 4.5 per cent and low inflation of 2.3 per cent. When the country adopts the euro at the beginning of 2009, the economy is expected to receive a considerable fillip, providing further potential returns on investment.
Cyprus also has a liberal policy on foreign investment, with no restrictions on the acquisition and development of land.
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