Cyprus to join the Eurozone

After its succession to the EU, it has been confirmed that Cyprus is set to join the Euro Zone on the 1st January, 2008. By replacing the Cyprus pound with the Euro, Cyprus will further enhance its suitability as an international business centre which is likely to lead to benefits in the Cyprus property market as well as to the economy as a whole. There will no longer be exchange rate risks between countries already in the Euro Zone and there will no longer be any bank-related costs for prospective home buyers from Euro Zone countries. Buyers will also be able to compare prices more easily.

Dr. Stelios Platis, Compiler of the Real Estate Home Price Index, which constitutes the only valid gauge of the Cyprus housing market, comments,

“The adoption of the Euro in Cyprus is an exciting progression. The positive effects upon the economy are likely to increase demand in an already buoyant market and therefore lead to an increase in house prices.”

Katerina, Marketing Manager at Ultra Properties comments,

“The property market in Cyprus is established, predictable and much less volatile than other newer markets. Furthermore, the excellent internal and international transport links to the UK, Europe and other destinations; the very low crime rate; the high standard of living balanced by the low cost of living; tax benefits (including low tax for pensioners) and excellent medical and educational facilities make Cyprus a popular destination.”