Euro entry to drive up prices in Cyprus

Monday January 7th , 2008

Investors in the Cypriot property market could be in line to benefit from price increases across the island.

The Post Office said the price of goods and services on the island was likely to increase in the wake of its recent accession to the euro.

According to the organisation, other countries including Spain and Greece experienced this following their transition to the single currency.

This has prompted it to advise British travellers that this pattern could be repeated in Cyprus.

Although this may be bad news for some leisure travellers, it will be likely to benefit many property investors, as they will be required to charge higher rental costs.

Furthermore, it suggests that those who already own a house on the island will see significant levels of capital appreciation over the next few years.

Helen Warburton, head of travel services at the Post Office, commented: "Holidaymakers planning trips to Cyprus would be well advised to keep abreast of news about price rises."

A total of 15 countries now use the euro.