The British have been buying on the southern half of Cyprus, especially near Paphos, for 20-30 years, but the past two years have seen them moving furtherafield, to Polis, north of Paphos, and to hillsides with sea views near Limassol on the southern coast and near Larnaca, in the east, where prices are up to 30%cheaper. Interest from well-heeled British buyers will be key to the success in the attemptto push Cypriot holiday homes upmarket.Work has started on the expansion of Paphos airport, and there are plans to build1,000 berths at the Coral Bay Marina, to help tempt wealthy yachtsmen.Last year the government also launched a new golf policy, which could increase thenumber of 18-hole courses on the island from three to 14. Aphrodite Hills, one of the biggest new housing developments trying to woo a richerclientele, about 60% of homeowners are British.

Buying property by the greens and alongside the fairways can addas much as 40%to the value of a property. A self-contained resort just 20 minutes from Paphosairport, Aphrodite Hills is set in578 acres, and when it is finished in 2008, it will have a totalof 650 properties. It also has an InterContinentalhotel, a tennis academy and a “village square”, surrounded by cafes, restaurants, a chemist, a shop and a church. In 2000, when the resort was nothing but bare earth, you could buy a three-bedtownhouse for £83,500-£95,500 (and that’s sterling, not Cypriot pounds). A similarproperty now costs £240,000. The penultimate phase of the development, Zephyros village, was launched lastmonth, with villa prices starting at £690,000 and rising beyond £1.1m for a four-bedproperty with a private pool.