Property Investment News From Buy Into Cyprus

Russians head for Cyprus as the Russian housing and stock markets continues to suffer
Wed 17th Dec 08 - 11:52

Cyprus offers security for their money says one investment company.

A growing number of worried Russians are taking their money out of the country and placing it in the safe haven of Cyprus, according to reports.

The Russian property and investment market has been feeling the pinch of the global economic downturn for the last few months, however, has been hit hard by recent drops in house prices of late, along with major falls in stocks and shares in the last two months.

The RTS Index and the MICEX stock index has had hundreds of points wiped from its value in the past months, and this is having an impact on the number of Russians looking to put their money into a less volatile place to ensure its continues to appreciate.

“Russians are the same as anyone else, and they want to make sure that when they work hard for their money that it is safe and is going to work just as hard for them,” explains Derek Hatton, Director of Cyprus estate agency Buy Into Cyprus. “While investments in other countries have been suffering, Cyprus house prices have remained stable, with Knight Frank recording house price growth of 9% in the last quarter of this year alone. Another thing to consider is whether or not a project you are buying into will actually be completed. I am pleased to say that our 5 star golf resort in Tersefanou, Larnaca, has recently received government approval to go ahead.”

In contrast, work on the Russia Tower in Moscow, which was planned to be the tallest building in Europe, has been halted because of the downturn in the country, leaving many investors uncertain of what the future holds for investments in Russia.

One recent buyer with Buy Into Cyprus purchased his property in Cyprus last summer for €188,000 and had it revalued this summer at €255,000 - growth of around €70,000. The company expects this to continue as Cyprus attracts thousands of tourists and property buyers from other countries such as the UK and Scandinavia, which means a strong rental/resale market in the future.

“The added benefit of this is that you can actually use your investment all year round as Cyprus enjoys 340 days of sunshine per year,” added Hatton. “Cyprus has long been a favorite of Russian buyers and has a lot stronger investment case going for it that in Bulgaria for example.

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