Cyprus Property: New Investment for Cypriot Properties

Cypriot property fund launched by Assetz

Property firm Assetz has launched a new Cypriot property fund, aimed at investing in selected commercial and residential property in Cyprus.

The investment specialist said it was approached by a group of investors wanting to pool around £10 million capital into a new Cypriot fund. The group was seeking a property expert to oversee its launch and advise on its investment strategy.

Stuart Law, managing director of Assetz, commented: "It seems professional investors with large sums of cash are becoming more confident in their own expertise. They are identifying broad opportunities themselves for investment on a major scale, but want to avoid the expense and hassle of direct property ownership. Any group of people with £1 to 2 million of cash or more can approach us as an experienced property investment specialist to oversee the creation of their own fund, which as in this case, can possibly be marketed to the wider investor community as well." confirms that the Cypriot market still has a great deal of growth potential to come, Mario Constantas confirmed that some very appealling developments are afoot in the coming years with medium/long term investments looking very promising for both capital growth and annual rental incomes.

It said the Cypriot property market continues to look positive, with demand for property remaining high amongst both foreign investors and local Cypriots. When Cyprus adopts the Euro in 2008 it will have to decrease interest rates from the current 5.5% to the lower Euro rate, making borrowing cheaper.

Capital growth over the last 12 months was estimated at 15%, with typical rental yields at 8%. The fund will seek to emulate the risks and returns of direct investment in property, with gearing of between 65 to 75%.

With 85% non resident mortgage funding now becoming the norm at Independent International Brokers like with rates from 3.45% investors now have true potential of growth with reasonably low purchase costs.