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Warm climates are set to be one of the main drivers for investment abroad in 2007, with the Cyprus property market set to be one of the beneficiaries of Brits' thirst for the sun, according to Assetz.

The property information website refers to a recent survey by BuySellCyprus which revealed that prices on the island are advancing at a steady rate of 6.3 per cent.

Further stability, as well as better deals for investors through a lower interest rate, are expected to emerge when Cyprus joins the eurozone next year.

Litsa Chrysostomou, marketing manager of BuySellCyprus, told Assetz: "While Christmas is an especially appealing time of year to live in Cyprus, the good weather year round, low crime rate, high standard yet low cost of living and tax benefits – especially for pensioners – all make Cyprus the ideal country to purchase a second home."

According to HolidayLettings.co.uk, property in Cyprus also offers good opportunities for returns on investment, with its low costs of entry and booming tourism market.

The average price for a home in Cyprus is currently 91,213 Cypriot pounds (£105,378).

About the Author: Anthony writes for Cyprus venture