On the 1st January 2008 the Cyprus pound was replaced by the Euro. Back in May 2005 the Cyprus pound entered the Exchange Rate Mechanism, when it was limited within a band rate of CYP 0.585274 +/-15% per Euro. Since 7th December 2007 the rate has been fixed at the irrevocable rate of:-                                        1 Euro = CY£0.585274

Sadly over the last number of months the Euro has been quite high against the Pound and Dollar. This in turn has meant that in real terms property in cyprus will cost anyone with these currencies more as you will get less for your money. However if this trend continues then if you have invested within the euro zone, even if the house prices do not rise, the Euro may. Thus investing within europe may be a shrewd move! 

When you KNOW you are going to purchase abroad, it may be an idea to contact a currency broker to fix an exchange rate. This way you know how much the home is going to cost and also if anything happens to the exchange rate you know you are safe!