Cyprus 'has good growth potential'

Monday December 24th , 2007

Investors looking to take advantage of a fast-growing property market have been advised to purchase in Cyprus.

UK newspaper the Telegraph stated that the Mediterranean island offered "good growth potential" to foreign buyers, as it is joining the euro next month.

The publication said that countries that had already entered the single currency had seen strong demand for property after their accession.

Slovenia was highlighted as an example of this trend, as it saw demand go up by 300 per cent after it adopted the euro earlier this year.

The Telegraph commented: "Cyprus hopes for something similar, with prices predicted to rise by 35 per cent in 2008."

Cyprus' entry into the single currency comes three and a half years after its accession to the European Union.

Last week, it was reported by the Famagusta Gazette that banks and businesses in Cyprus are set to close for business temporarily on New Year's Eve.

This is intended to help ensure that the changeover to the euro goes as smoothly as possible.