Membership of the eurozone

In a year which started with membership of the eurozone, Cyprus may have high hopes for the near future. The property industry on the island is one of those areas of economic activity where further growth will be hoped for, while of course those considering investing in property there will hope there are plenty of good reasons to do so.

However, simply being able to offer Mediterranean sunshine, beaches, history and culture - though the country indisputably has all these - is not all the country is planning to rely on in 2008, it would appear.

The Cyprus Association of Professional Valuers and Property Consultants revealed research this week that has highlighted the strengths and weakness of the market, the Cyprus Mail reported. Its aim was to produce suggestions for improving the real estate industry on the island.

New ideas included a single property tax to replace the unpopular 15 per cent VAT levy, described as "anti-constitutional" by Association board member Andreas Andreou, plus various other ideas, which ranged from the reorganisation of local government in Nicosia to the addition of new roads in residential districts.

Whether any or all of the ideas are adopted remains to be seen, but the research also found many positives for the country, not least in its new economic situation. Another board member, Nicolas Kyriakou, said the euro adoption had been very good news for the market "since this attracts foreign investment and eradicates the dangers of currency exchange".

Thus while the property industry on the island celebrates all this is good, it is not resting on its laurels. This may be encouraging for investors, since positive and successful lobbying may help create more advantages in buying property on the island.

For British investors, a key advantage is that Britons do like Cyprus. Research by the Homebuyer and Property Investor Show found that Cyprus is the favourite retirement location for Britons abroad, ahead of Panama. Nick Clark, managing director of Homebuyer Events, said: "Not only does Cyprus offer a warm, sunny climate, it also benefits from favourable taxation and healthcare policies." The Cypriot financial mirror added the advantages of the widespread speaking of English and right-hand driving. These latter features, of course, apply across the age groups.

Earlier this month Paul Collins, overseas property editor of Buy Association, said there was more good news for Cyprus. Like Malta, another small Mediterranean island with close UK links and nascent eurozone membership, the country is now poised to receive more flights.

"Both countries have also had easyJet routes open up. They will both get the benefit from that as they will be easier to get to," he noted. For Cyprus, that is a tangible measure that may bring in many more investors and tourists.