Dowdy old Cyprus, beloved by British retirees and once home to endless rows ofshabby seaside hotels, has been gradually changing. New hotels, like the ultra-expensive Anassaon the remote AkamasPeninsula andthe designer-chic Almyra, have made this Mediterranean island a destination formany wealthy urban professionals from throughout Europe.

Lovers of food are attracted by innovative uses of fresh local produce that maketraditional dishes like stiffado, klefticoand kebab passé. And golf and yachtingenthusiasts are drawn by the year-round warm climate and Cyprus's ambitiousplans: Tourism Minister YiorgisLilikassays 14 new golf courses, as well as newyacht marinas, are planned near Limassoland Polis.Not surprisingly, real estate has felt the impact. Last year, the benchmark annual index recorded an average increase in saleprices of 7.22 percent, fueled in part by activity related to Cyprus's admissionto the European Union last May. British buyers had a large impact on the market, making purchases before theEU'sobligatory 15 percent tax on new construction came into effect.And demand has been holding up.

After the local stock market collapsed in 2000 and 2001, real estate prices rose25 percent to 30 percent a year from 2001 to 2003. Some speculators made quickfortunes, but real estate agents said most buyers planned to stay. And now buyersfrom countries other than Britain are coming in greater numbers than ever before. The EU accession is attracting people from countries other than Britain, as is thefact prices are still some 35 percent lower in real terms than in Spain and Portugal. The island's fans cite its low crime, low pollution and good infrastructure, with freehighway travel and high-quality health care.For the adventurous, the proximity of Beirut, Tel Aviv and Cairo( each one justabout a one-hour flight away ) is a bonus. Although Limassol, on the south coast, and AyiaNapa, to the east, have attractedinterest, the main foreign focus is on Paphos, on the west coast, and its region ofthe same name. Long a favorite with British buyers, the area andits charms areattracting the interest of the Germans, Italians and Russians inparticular.