Homes Overseas has added the Mediterranean island to its elite category, alongside Morocco, with Slovakia and Australia dropping out.
Reasons given for the inclusion of Cyprus include its status as both a member of Nato and the European Union, with prices rising 18.6 per cent a year since 2004, the economy growing well, foreigners having more access to mortgages and the average property prices still being an affordable £149,000.
Other developments in the country in the last year have been the adoption of the euro as its single currency and the instigation of talks on the reunification of the island, which has been split between the Greek Cypriot south and Turkish north since 1974.