Property prices in Cyprus may have risen by 18% last year, but Assetz reports that prices may yet increase by a further 50% when the country joins the European Union in 2007.

Stuart Law, managing director of Assetz, comments: "High standards and low costs of living along with virtually non-existent crime rates makes Cyprus an attractive option for UK investors."

"Prices are still considerably lower than in France or Spain - a three-bedroom detached villa with a private pool would currently set you back around £250,000, which would probably only stretch to a two-bedroom apartment in France. Capital growth is expected to continue at a high level for the foreseeable future due to interest from buyers all over Europe and the under supply of property."