INVESTMENT OPPORTUNITY IN CYPRUS

Transcription

1 INVESTMENT OPPORTUNITY IN CYPRUS EXCLUSIVE 5-STAR RESIDENTIAL SPA RESORT IN MAZOTOS LARNACA Two off plan units are now for sale at the luxury 5-star Grove Spa Resort in Mazotos, near Larnaca in Cyprus, which is due for completion October 2010.

2 The first is a penthouse apartment providing the ultimate in outside living with direct access to a private roof terrace (62m2) with unmatched views of the surrounding area. The second is a perfectly proportioned ground floor apartment which benefits from a large garden (98m2) to make the most of the 340 days of sunshine enjoyed annually in Cyprus. Both apartments have two bedrooms and all kitchens and bathrooms will be finished to the highest standards. This is the floor plan for the Penthouse. 2

3 This unit is perfect for whiling away the hours with sunbathing, barbecues or relaxing in your private Jacuzzi. This apartment has a total covered area of 98m2, roof terrace of 62m2 which makes a total area of 160m2 Dimensions: Bedroom x 3.25m Bedroom x 3.25m Living Room 5.70 x 3.55m Kitchen 4.00 x 3.55m Terrace x 7.15m Roof Garden with optional Jacuzzi x 6.9m This is the floor plan for the ground floor apartment. 3

4 This unit boasts one of the largest gardens on this resort and is ideally positioned to provide privacy. The attraction of this apartment is the generous garden area of 98m2, added to the covered area of 111m2, provides a total area of 209m2 Dimensions: Bedroom x 3.25m Bedroom x 3.25m Living Room 5.70 x 3.55m Kitchen 4.00 x 3.55m Terrace x 7.15m The Grove Spa is a distinctive and exclusive signature resort setting a new standard for residential leisure schemes in Cyprus. Situated in the idyllic village of Mazotos which is only 4

5 a 20 minute drive from Larnaca airport, 25 minutes to Limassol and 5 minutes to the splendid beaches and beautiful coastline. The resort prides itself on offering a luxury 5-Star service in a prime location of Cyprus providing: Exclusive Five-Star Residential Spa Resort The ultimate in luxury and convenience 24-hour concierge service Full suite of health and fitness activities On-site restaurant, snack bar and roof terrace bar Penthouse apartments with rooftop gardens for Jacuzzis Underground secure car parking - two per unit Peaceful rural setting Close to beaches and golf courses Excellent access to airport and major towns Underground storage 5

6 Set in lush Mediterranean landscaped gardens this residential Resort exudes charm and sophistication within an elegant self contained community. Designed around the superior on-site facilities, this Resort offers unrivalled living at an affordable price. The Resort boasts a wealth of health and fitness activities including 3 large outdoor swimming pools and pool/snack bar areas, indoor heated hydrotherapy pool, Jacuzzi, fully equipped gymnasium, tennis court, dance/aerobic studios, sauna and steam rooms. In addition to swimming in the pool you may decide to take a class or two in yoga or Pilates making use of the relaxed and comfortable designated outdoor exercise areas as an alternative to the studio. 6

7 The ultra-modern Spa facilities provide a full range of treatments for the convenience of guests wishing to be pampered in a luxurious setting. For the health conscious or for those just wishing to relax, why not try the rooftop juice bar? As befitting a five-star complex, the resort includes a 24-hour on-site concierge to provide hotel style services for guests staying in luxurious but private accommodation. The uniquely designed restaurant offers local and international cuisine and comes complete with a roof terrace for an unrivalled dining experience with views of the ocean, the mountains and spectacular sunsets. For the younger ones there is a purpose built outdoor play area and an outdoor pool. Whilst for teenagers there is a 7

8 comprehensive games room filled with a host of activities including a wide range of video games. A large communal sports TV room ensures you never miss a moment of your favourite sport. The retail units will include a well stocked supermarket; sales office and beauty saloon complete the comprehensive on-site facilities to ensure that your entire holiday is one you will never forget. Financials. 8

9 With the only comparables on the island being Hotel Spa units ranging between 500, ,000, or high quality apartments (not offering the facilities of a spa resort) ranging from 400, ,000, each unit is priced at 415,000. With a view to providing value for money and an excellent investment opportunity, these units may appeal to the canny investor looking at a medium to long term strategy or those looking to utilise these excellent facilities for private use. The penthouse provides direct access to a private roof terrace of 62m2 and great views of the surrounding area. The ground floor apartment has one of the largest gardens (98m2) on the resort and is ideally placed for privacy. As the average temperature is about 20 C throughout the year in Cyprus the rental high season runs from May through to October and the low season from November to April although high rental can also be achieved over the Christmas and New Year period. Assuming bookings of 25 weeks from 30 in the high season and 16 from 22 weeks in the low season, priced at 800 and 400 per week respectively, the possible yearly income would be 26,400. Therefore with a capital cost of 415,000 Euros this equates to a gross yield of nearly 6.5%. Links to comparables for sales and rentals can be found at the end of this document. Those looking to perform a cash deal will be looking at a 6-8 week legal process while those seeking a mortgage will be looking at 2-3 month process if seeking a Cypriot loan. Cyprus - General Information 9

10 Since becoming a full member of the EU on 1 May 2004, Cyprus has been something of a honey-pot for property investors. With its fantastic all-year round summer climate, fine beaches and smart new golf courses, investors have swarmed to the island in previous years. Demand currently exceeds supply as holidaymakers, employees of foreign companies and retirees compete for property. What makes Cyprus different to other investment countries is that the island has strict planning controls limiting the downside risk to prices from over-supply. Interestingly, Cyprus is considered to be one of the safest places to live in Europe. According to European Union statistics, the crime rate in Cyprus is only 6% of the rate in the UK. Since 1974, the island has been divided into the north (Turkish Republic of Northern Cyprus or TRNC) and the south (Republic of Cyprus). The south comprises 68% of the land and is predominantly inhabited by Greek Cypriots, and the North is largely populated by Turkish Cypriots and Turkish nationals. This division dates back to 1914 when the British formally annexed Cyprus (prior to that, Cyprus was controlled by the Ottoman Empire). Despite periodic pressure from the UN, Cyprus remains split in two. In May 2004, the Republic of Cyprus gained membership of the European Union. Where is Cyprus? Cyprus is at the eastern end of the Mediterranean, just 40 miles from the coast of Turkey, at the crossroads of Europe, Asia and Africa. Cyprus (as a whole island) has a total area of 9,250 sq km and 648 km of coastline. 10

11 Flights to the three main airports in Cyprus, Larnaca, Paphos and Nicaosia, depart from most major UK cities such as Edinburgh, Newcastle, Manchester, Birmingham and all London airports. These flights vary in price depending on airline, type and season but can start from in low season to in the high season. Languages used in Cyprus The official languages are Greek and Turkish, spoken by 84% and 13% of the population respectively. Other minority languages include Armenian and Arabic. With Cyprus being a former British Colony, English is widely used as a second language. Currency The Cyprus Pound (CYP) was replaced by the Euro which was adopted on 1st January What is the weather like in Cyprus? Cyprus enjoys one of the best Mediterranean climates with 11

12 approximately 340 days of sunshine per year. In general, the island experiences mild wet winters and dry hot summers. The mean annual temperature is about 20 C. There is also a short season of snow in the mountains from January to March. During winter, it is possible to sunbathe in the morning and ski in the afternoon. Average monthly precipitation in Cyprus Average monthly temperature in Cyprus Cyprus - Property & Tourism Property Market EU accession had a very positive influence on the development of the Cypriot property market. Pre-accession property prices grew by 10-15% on average and in the post accession period 12

13 they grew 25-30% (or at an average rate of 15-20% over the last five years). The property market is forecast to remain strong in the next few years due to Cyprus adoption of the Euro in 2008, the strength of the economy, falling interest rates and a continued demand from retirees and second home buyers. Property Sales (Source: Department of Lands and Surveys) Cyprus is benefiting from a substitution effect with Spain and other more mature property markets. Property prices are no longer cheap, but are still around 30% cheaper than prices in Spain, Southern France and Italy. Cyprus main advantage is that it attracts all types of buyers investors, retirees and families of many different nationalities. Due to the island s strict planning and building regulations, the supply of properties remain limited. This protects the property market 13

14 from over-supply which is a risk in some other markets. The Cyprus property market is also benefiting from the uncertainty surrounding the UK market and has benefited from the substitution effect of UK investors seeking growth and income in a market at a different stage of the property cycle. UK investors in particular are attracted to Cyprus because they understand the robust English-based legal and banking systems as well as English being widely spoken. It is almost a home from home, with Marks and Spencer, Debenhams, Next and many others providing services to the large retirement and second home communities. Tourism Cyprus has established itself as a well-known tourist destination. Every year about 2.4 million tourists visit this country - which is three times the island s total population! The British account for over 56% of visitors, while the majority of other arrivals come from Germany, Greece, Sweden, Russia and Norway. Tourism is an important source of income for Cyprus and plays a significant role in the country s economy. In 2005 tourism revenues were CYP 1,005.7 million ( million), accounting for 13% of GDP. 14

15 The government is implementing new plans to further increase the number of visitors. Cyprus already has a highly developed infrastructure but new projects are on the way. The two international airports at Larnaca and Paphos are being expanded at a cost of 500m to increase the capacity to over 7.5 million passengers a year. In addition the Cyprus government has drawn up proposals to create new golf courses throughout Cyprus, with the aim of attracting a better class of tourists and to put an end to the chronic problem of seasonality. Cyprus - Location information When deciding where to invest in Cyprus, one of the most important factors to consider is location. Below is a brief guide to some of the most popular locations for property investors. Larnaca 15

16 Larnaca is situated on the south east coast and is home to the island s main international airport. Modern day Larnaca, like other Cypriot coastal towns, is divided into an older city centre as well as a wider sprawl of modern hotels and restaurants along the beachfront. Its established infrastructure, shopping centre and communication links make it popular with both tourists and those seeking a second or retirement home in the sun. Larnaca is a lively town throughout the year and its abundant amenities and facilities make it a great location for retirement. There are two aspects to Larnaca s property market: one is the development of the main town and the other is the growth of beach-side areas on the outskirts. Limassol Limassol is the second largest town in Cyprus; it is a main port, the centre of the wine industry, and also a holiday resort. It has been the centre for hundreds of Russian off-shore companies over the years which have had a positive effect on the local property market. Limassol has a high Russian and Eastern European demand and as such is the predominant location for their property purchases. Commercial and residential property prices in Limassol are approximately 5-15% lower than in other areas of Cyprus. Limassol offers year-long rental contracts for commercial and residential properties in the city, and short term letting for holiday property during the peak seasons. Like the other districts we have examined, Limassol has all the attractions of a modern holiday resort which comfortably sits alongside a vibrant business and commercial sector. Its international port welcomes cruise ships and there is a busy trade in short cruises to the Greek islands. 16

17 Pervaolia, Kiti and Mazotos The satellite villages of Pervolia, Kiti and Mazotos are beginning to attract second home owners, retirees and investors who appreciate the unspoilt natural beauty of the area and the potential for solid financial returns. The announcement of a new golf course and leisure complex at Tersefanou, combined with the local villages and miles of unspoilt, clean and uncrowded beaches, make this one area of Cyprus to keep an eye on for the future. Polis and Latchi Polis and Latchi on the north-west coast are now currently attracting attention as investor areas due to their proximity to the Akamas peninsula, a protected area of outstanding natural beauty, yet still accessible from Paphos airport and town. Previously small fishing villages, they now attract those interested in a more rural Cyprus experience. Cyprus Property Investment Economics Cyprus EU membership 1 May 2004 had a resultant macroeconomic boost and provided an excellent opportunity for superior returns in the property market and here s why: Cyprus economy continues to grow strongly and has continued to expand despite the negative effects experienced elsewhere. Cyprus Property Market 17

18 "Over the last three years demand for property has increased by an average of 15% to 20% per annum. This will increase with EU membership as people from the landlocked central European countries, which are also destined to become member states, are expected to look for second homes on the island" (source: FT World Report 2008) A falling interest rate environment. Central Bank of Cyprus base rate is 4.5% whilst the European Central Bank (ECB) rate is only 4%. Interest rates have to converge for Euro entry 1 January The law restricting foreign ownership of property to just one per person, is to be lifted post 1 May 04 after a transitional period with the resultant boost to demand from large investors overseas. The island has a world demand for property, including from a growing and affluent Russia and former Soviet states. There is also a large investor demand from Greek Cypriots living in the UK and US. Highly educated, English speaking and low cost workforce will attract flows of capital from within the EU and other markets. 60,000 British ex-pats provide an attractive community for UK retirees and a dynamic demand for quality property in quality areas. The weather, tourism and British nature of the island appeal to many affluent buyers. As English is spoken widely and is the second language, the appeal is international and not just confined to the UK. Tax Minimisation The InvestinCyprus.com accountant, based in Larnaca, can advise on setting up a Cypriot limited company to take advantage of the extremely favourable 10% Corporation Tax, 18

19 thus allowing more of your profits to be re-invested. Our accountant gives a detailed presentation and takes many questions during InvestinCyprus.com property investor weekends Cyprus. Our international tax specialist, based in Liverpool, is available to all of our clients to assist with tax minimisation strategies. This has proven to be a very successful and popular service. Our tax specialist works very closely with our accountant in Cyprus. Cyprus Law InvestinCyprus.com has a high calibre law team based in Paphos who deal with our own property purchases and those of our clients and through whom you receive preferential rates for professional services. Our lawyer gives a detailed presentation and takes many questions during InvestinCyprus.com property investor weekends Cyprus. Comparables: SALES. 2 Bedroom apartment Larnaca 503, Bedroom apartment Aphrodite Hills Golf Resort, Paphos 590,000 Hills_Golf_Resort_Pafos/Apollo_Heights/P12.php?propid=293 2 Bedroom apartment - Amathus Limassol 480,

20 mathusa_coastal_heights/o304.php?propid=207 Exclusive apartment Limassol 529, New apartments for sale Protaras Famagusta 598, RENTALS. Le Meridien Limassol Spa & Resort prices range fro per room per night equestedchaincode=lm&requestedaffiliationcode=si&roomoccupancytotal=1& departuredate= &arrivaldate= &lengthOfStay=14&numberOfRooms=2&numberOfAdults=2&language=en_US &ES=LPS_1853_EN_LM_BOOKWIDGET_LIMA_ECE_EAME Hilton Spa Resort 20 min from Larnaca airport 168 per room per night UCSGBJF222Q?_requestid=26020 Below are the two official web sites for the Grove Spa Resort Contact Kevin McCarthy on or mail at 20