Cyprus: Mediterranean enclave for upmarket expats

Aphrodite Hills is Cyprus's only five-star integrated golf resort

By By Saundra Satterlee

"The Telegraph"

 Despite the political and economic turmoil across much of the euro zone, when it comes to expat property, there are winners and losers. How can you come out on top?Hardest hit are expats wishing to sell up and relocate back to the UK. The weak euro against sterling can mean selling at a loss, a scenario exacerbated by expensive and often unaffordable properties back home.For more fortunate expats - and taking into account that sterling against the euro is stronger today than it has been anytime since November 2008 - this could be an auspicious time to buy, especially for those with deep pockets seeking high-end property.

Similar to upmarket Manhattan or Mayfair, property sales in various Mediterranean enclaves remain buoyant. One such example is to be found at the low density 578-acre Aphrodite Hills resort near Paphos on Cyprus, an island where there are reasons to be optimistic about the future.

Although the Cypriot economy has not escaped the euro crisis, from a long-term perspective the discovery of offshore natural gas is good economic news. And at present, certain economic indicators suggest that it would be a mistake to see Cyprus as a mirror image of Greece.

For example, the latest World Bank rankings for last year put Cypriot GDP per capita income at $30,000 compared to Greece’s $26,427. While September’s unemployment rates in Greece hover around 25 per cent, Cyprus at around 10 per cent is not much above the UK. Unlike Greece, draconian austerity measures have not been implemented in Cyprus. To add to this positive panorama, the Cypriot government has introduced a number of temporary measures to bolster the economy, some of which are beneficial for the purchase of newly built property by foreign nationals.

One is a reduction of VAT from 17 per cent to 5 per cent for your first property in Cyprus and another is the abolition of the property transfer tax to zero from its past rate of up to 8 per cent. Initially short term, these measures have been extended until the end of 2012 and an extension into 2013 is widely predicted.
Aphrodite Hills, Cyprus’s only five-star integrated golf resort, has launched its final phase of new homes, Alexander Heights, featuring 68 hi-tech villas and apartments with sweeping views across the Mediterranean. Traditional exteriors are complemented by ‘smart’ interiors including touch pad controls for everything from shutters and air conditioning through to music systems and underfloor heating.
The first tranche of apartments and villas are priced from €609,000 to €2.8m for a five-bedroom villa and infinity pool. “A sterling purchase today of a €2.8m villa is cheaper by nearly £300,000 than it would have been 10 months ago,” says Aphrodite Hills sales manager George Elias. Of the first 10 villas under construction, with a completion date of August 2013, eight have been sold, all to expat buyers.
Pre-dating Alexander Heights and adjacent to it is Aphrodite Hills Theseus Village, where 10 unsold apartments remain from a total of 117. For those with less deep pockets, a two-bedroom unit with two massive terraces costs €395,000 or a one bedroom with 80sqm of living space is €270,000.
There are at present 750 owners in Aphrodite Hills of which 60 per cent are British, 15 per cent Cypriot, 10 per cent Russian and the rest other nationalities (Swiss, Austrian, German, Middle Eastern, South African). To date 80 per cent have bought for lifestyle, with the remainder for investment.
Aphrodite Hills property sales were robust last year. “To date, sales have outstripped 2011, which bodes well for an outstanding 2012,” said Loucas Kitrou, Aphrodite Hills real estate manager.
The full range of resort amenities includes an equestrian centre, nature trails, Annabel Croft tennis academy, kids’ club, spa and a village square that hosts musical evenings and also features a corner shop, bank, restaurants and round-the-clock medical clinic. Central to the resort’s 18-hole championship golf course is a five-star InterContinental Hotel.

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