A time for Renewal
It is at this time of the year with Easter and spring that we often seek fresh starts and a sense of renewal. For those looking for a complete spring clean and a new life, it is this season that is often the busiest for those looking to move home.
There is nothing like blue skies and sunshine to inspire some optimism. For those looking for new adventures and experiences, this is also a fantastic time to look overseas.
There are several markets showing the green shoots of recovery particularly Portugal and Spain but also France, Italy and Dubai.
However, it is one country in particular that is seeing a renaissance and that is Cyprus. At Escape to the Sun, we are always looking to spot those markets that appear under-valued and Cyprus appears particularly attractive at the moment.
With property prices still some 30% below their pre-financial crisis peak of 2008, the potential for significant capital upside along with attractive rental yields is very high. The investment story is extremely positive.
Property markets often lag faster moving equity and bond markets and Cyprus appears a case in point.
Amid the euphoria over the ‘Trump-bump’ to equity markets over recent months, one corner of Europe’s debt markets has been quietly motoring along: Cyprus. According to the FT#, Cyprus debt is now cheaper than Portugal despite the latter still being supported by the ECB. Cyprus exited its bailout programme last year and has seen its government borrowing costs tumble to 15 year lows.
The outlook is also reflected by S&P that have recently hiked its capital rating of the country to BB+ with a stable outlook. This represents the eighth successive capital rating improvement since the financial crisis.
With forecast GDP growth of nearly 3% and a lower debt-to-GDP ratio than many of its Mediterranean counterparts, investor confidence is climbing and this is reflected by the increasing switch into Cypriot assets.
So, if you are looking for a fresh start and the excitement of a new beginning overseas, Cypus has a lot going for it.
If you would like to read our Cyprus Investor Pack, please contact us and we will be happy to send you a copy.
# FT.COM on 10.04.2017. – Cypriot bonds are the eurozone’s quiet star performers.Back to news