Hi Sonia

You're getting a good rental on your 1-bed apartment.

We moved over here in 2002 and rented a 3-bedroom house in Episkopi (about 15 mins out of Limassol) for two years while ours was being built. We were paying CYP 250/month (excluding utility bills).

I don't know if you're planning to sell your apartment, but one of the property advertising agencies here says it has 25,000 on its books (that's more than they build here in a year). It's OK having a paper value of £60-65,000, but whether you'll be able to find someone willing to offer you that amount is another question.

The only European counties that saw property prices rise last year were Malta & Cyprus. One of the local pundits predicts a 20% reduction in Brits buying property here in 2008 and a slight drop in prices by around 10%.

Some of the developers are getting pretty desperate. One in Paphos is offering buyers a 'free' car - others are offering 'guaranteed rental' (both of which have of course been factored into the buying price).

The property marketing companies are spreading their nets even wider. As well as Russia, I've recently been contacted by potential buyers living in South Africa, Singapore and Australia!

Cheers,