Free Resource - A guide to the Cyprus Property Market

Discussion in 'Cyprus Property' started by totallyproperty, Apr 1, 2016.

  1. totallyproperty

    totallyproperty Administrator Staff Member

    Cyprus property market

    While it would be wrong to suggest that the Cyprus property market is booming as of 2016 it is often unfairly seen in the same light as the troubled Greek property market. These are very different economies and very different property markets, a fact which is borne out by the announcement that Cyprus has exited the €10 billion bailout from the IMF. This is a major turning point for a country which was struggling and while there is still much work to be done it certainly separates Cyprus from Greece.

    Economic performance

    When you bear in mind that gross domestic product in Cyprus increased by 0.2% in 2015 after a fall of 3.7% in 2014 we are certainly starting to see signs of recovery. As we touched on above, the exit from the IMF bailout should not go unnoticed as this is a perfect reflection of the country’s growing strength. We can only hope that the Cypriot authorities do not take their foot off the gas now that they have exited the IMF bailout (and its many restrictions) giving them significantly more room to manoeuvre.

    It would be wrong to suggest it will be plain sailing from here on, especially in light of the troubled European economy, but finally there is hope on the horizon.

    Property market

    The Cyprus property market has been impacted by a lack of transparency in years gone by and issues surrounding property deeds. Slowly but surely the regulatory structure has been improved but there may still be years of legal wrangling to resolve every outstanding issue.

    It is also worthwhile reminding ourselves that the average cost of a house in Cyprus has fallen by more than 30% since 2010 with a 40% reduction in the cost of apartments. In light of such a reduction in property prices it is perhaps no surprise to learn that a property investment visa along the lines of those introduced by the Spanish and Portuguese governments was also brought into play by the Cyprus authorities.

    Immediate outlook

    While there have been a number of false dawns regarding a potential recovery in the Cyprus property market nothing has emerged as yet. One issue yet to be resolved is that of the raft of properties repossessed by Cypriot banks after customers defaulted on their mortgage payments. There have been rumours that the banks will bail out of these properties at a significant reduction to the perceived market value and this is not helping investor demand in the short to medium term.

    If you were an investor looking at the Cyprus property market with a long-term view, would you be in a rush to jump in when you know that a whole host of repossessed properties may soon be dumped on the market?

    Future

    We have seen an array of international investors take advantage of the property investment visa which has helped to support the property market in the short term. Recent news has been more encouraging with regards to positive economic growth not to mention the country’s recent exit from its IMF bailout. There is certainly more hope now for the longer term but the short term performance of Cypriot property very much hinges on the array of repossessed properties overhanging the market.
     
  2. nmb

    nmb Well-Known Member

    Cyprus is often spoken of in the same breath as Greece even though they are two completely different real estate markets. Recent data suggest that the market may not break new highs in the short to medium term, and there may indeed be some short-term downside, but perhaps those with a long-term investment horizon may find some good deals in Cyprus?
     
  3. Veronica

    Veronica Administrator

    Definitely if you know w here to look there are some excellent LONG TERM investment opportunities. Some of the developers are still trying to convince people that it is still possible to buy off plan and flip when completed but that does not happen in reality but there are some opportunities for anyone who is willing to play the long game.
     
  4. nmb

    nmb Well-Known Member

    Hi @Veronica

    My stepdaughter was recently in Cyprus on holiday and she was very impressed by quality of housing and local services. It seems as if the area still attracts a significant number of holidaymakers even in these difficult times for the worldwide economy.
     
  5. Veronica

    Veronica Administrator

    Yes the holiday trade is pretty buoyant and Cyprus is a great place to live. I have lived here for 11 years and have no intention of returning to the UK if I can help it.
     
    Last edited: May 2, 2016
  6. Simonas

    Simonas New Member

    Yes, you are right @Veronica, Cyprus is a wonderful place to live or spend the holidays with family and friends. One of many friends lived in Cyprus. Last year, I also enjoyed my holidays there. I am also going to shift there, For this, I have the I(moderated)which is a registered real estate agency in Cyprus and they provide us a number of choices according to different locations as per my demands. When I have seen my luxury home it's like my dream comes true.
     
    Last edited by a moderator: Mar 17, 2018
Loading...

Share This Page