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Cyprus and its once-hostile neighbour, the Turkish Republic of Northern Cyprus, seem intent on reunification. On property patrol both sides of the border, Ginetta Vedrickas looks first at the south, home to some 80,000 Britons

Stepping on to the blazing tarmac at Paphos airport after a washed-out British summer, the relief is immense. Cyprus, boasting 340 days of sunshine a year, has long been a haven for holidaymakers and, more recently, buyers who love its sun, sea and sand and the familiarity that comes from its British colonial legacy.

The traumatic division of the island sparked by the Turkish invasion in 1974 still casts a shadow. But even that may soon pass, as there appears to be a genuine will to reunite the Republic of Cyprus - the "Greek" part, which joined the European Union in 2004 - with the pariah Turkish Republic of Northern Cyprus.

An estimated 80,000 Britons now own homes in the larger, southern part - more than 15,000 of them bought through Leptos Estates, which has built 150 developments since 1961. Leptos manager Anita Hopkins says that there is no single draw which attracts buyers: "It's just very comfortable. You get off the plane and it's not the food, culture or beauty but the whole thing - Cyprus really does have it all."

About 40,000 investors have bought in the Paphos region in the south-west. Beloved by the British, it even boasts branches of M&S and Debenhams, but Russian visitors have been growing by 30 per cent annually.

Since Cyprus joined the EU, wealthy buyers have rushed to enjoy a low tax regime, no inheritance tax and exemptions from overseas interests and dividends

Russian buyers are propping up capital growth of 7-10 per cent depending on property type, but the British market is faltering, thanks to the unhelpful euro exchange rate, says Sakis Hadjialexandrou, of Leptos. Frontline coastal positions are increasingly rare but Leptos recently launched villas at Sea Caves in Peyia, a secluded location not far from the sweeping beach at Lara Bay, where turtles come to lay their eggs. Prices start at £605,000.

On the lesser known north-west coast, Polis, Latchi and Argaka attract buyers seeking a more tranquil lifestyle and potential price growth. This area has a planned golf course, an international marina at Latchi and a new motorway which will slice 20 minutes off the 45-minute drive to Paphos airport.

Leptos's Polis Beach Villas have Mediterranean views and have soared in value from £275,000 at their launch eight months ago to £390,000, an increase of 40 per cent. Close to Latchi Marina and the Akamas National Park, the first phase of eight villas sold mainly to Russian buyers and demand is expected to be high for the final six large seafront villas priced at £1.77?million.

Thanks to several years of growth, property under £80,000 is a rarity. The cost of living still compares favourably with the UK, but the strength of the euro means that many buyers have been priced out of the market.

Such factors may persuade some to consider house-hunting north of the border. Isolated by the international community, which does not yet recognise the state, the Turkish Republic of Northern Cyprus has not enjoyed the prosperity of the south and, inevitably, property is cheaper.

However, Martin Pearce, UK director for Aristo, which has been building in the south for 25 years, urges caution. "We've all heard the negative publicity surrounding the north, where there can be a problem with title."

Everyone has tales of property and land lost since the Turkish invasion and the resulting division of the capital, Nicosia. Progress to resolve the situation has been slow, but there are signs that the island may be inching closer to reunification. In April this year, the barrier dividing Nicosia's main shopping street was removed, allowing anyone with ID to cross the border.

Since the beginning of this month, the president of Cyprus, Demetris Christofias, and Turkish Cypriot leader Mehmet Ali Talat have been meeting every week to try to thrash out a formula for reunification, which could even come this year.

When and if that happens, the market in Northern Cyprus will really open up.

Under Polis protection

Retired watchmaker Derek Wallis and his wife, Penny, from Stirling, paid £275,000 last year for a three-bedroom villa at Polis Beach Villas at Polis Chrysochous, a 30-minute drive from Paphos.

The European Commission has started a project to build a pilot solar power plant in northern Cyprus that will deliver electricity to the grid in 2009, reports BRT Radio.

Energy experts gave a seminar at the EU Programme Support Office in northern Nicosia yesterday to demonstrate the particular opportunities for Cyprus in renewable energies and to explain respective technologies.

During the seminar, presentations were delivered on ‘The Global Energy Revolution’ and ‘Solar Power Generation-State of the Art and Prospects for Cyprus’.

Speaking at the seminar, the Head of the EU Programme Support Office Alain Bothorel said that 14-million Euros have been earmarked for the development of the energy sector in North Cyprus and that the amount will now be used on investments for the use of solar energy.

Pointing out that with the rise in petrol prices, solar energy has become relatively less expensive, Mr Bothorel said that the aim is to make the use of solar energy system sustainable in North Cyprus.

Dr Fulcieri Maltini – a speaker at the seminar - also made a presentation on energy problems of the world and solar energy systems as an alternative.

3 September 2008
Cyprus leaders launched talks today seen as the best chance in decades to reunite their divided island and end a conflict threatening Turkey's EU membership hopes.

Cypriot President Demetris Christofias, representing the Greek Cypriot community, and Turkish Cypriot President Mehmet Ali Talat, who met in the no man's land dividing their capital Nicosia, represent what diplomats and analysts says the first opportunity for a breakthrough in years.

"We must, at long last, put an end to the suffering of our people and reunite our country," Christofias told reporters as he headed for the meeting.

The partitioned status of Cyprus is a headache for the EU. Effectively represented in the bloc by its Greek Cypriots, the island has veto rights over the membership bid of Turkey, a key western ally in the Middle East.

Analysts agree this is the best chance for a solution not least because the two leaders come from leftist parties and, unlike previous negotiators, have little to do with the roots of the island's violent conflict.

"It is widely believed that if these two moderates can't solve it, nobody can," said Hubert Faustmann, a Cyprus-based analyst.

Christofias's presidential election victory in February over Tassos Papadopoulos, who led Greek Cypriots in rejecting a UN reunification plan in 2004, marked a turning point in the dispute that has frustrated mediators since 1974.