I'm from Cyprus. I'm not real estate agent neither a developer. I just visited this site becuase i'm investing as well in some foreign countries. Cyprus is a great place to live guys. The prices though experienced huge gains in the last 5 years. BUT they will not go down. For the next few year i believe they will remain the same with 4-5% annualy appreciation. Be aware the from 2008 we will have a 15% tax on every plot that is bought here (i'm not talking about the 15% tax you are now paying when you buy a property). Locals do not sell their apertment or house unless they make profit. On the other hand properties next to the sea, can not be bought from cypriots any more. They are too expensive. I'm from limassol ( the best town now in Cyprus by far) and properties next to the sea cost 3000 CYP pounds/sqm. All other properties are on average 1000/sqm. Pafos experienced a huge demand especially from UK but guys, be aware, not all developers are worth to be trusted. You do not want to end up with a flat with no title. Neither with a bad structure building.