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Cyprus property market shows weak signs of growth

The Cyprus property market is depressed and shows weak signs of growth according to the latest RICS (Royal Institution of Chartered Surveyors) European Housing Review.

A SIGNIFICANT number of European residential property markets are starting to recover with both sales and prices increasing, according to a new report from RICS (Royal Institution of Chartered Surveyors).

The worst performing markets of 2009 were Ireland, Spain, Greece, and most central and eastern European countries. The Baltic States were hit particularly hard with price falls ranging from 27% to 53% in 2009. Together, these countries form a geographic ‘unlucky horseshoe around the edges of Europe’, according to reports author, Professor Michael Ball.

Over supply is likely to hold back recovery in some countries, most notably in Spain, Cyprus and Ireland where both unsold holiday homes and primary residences could bring these markets further problems, the report also points out.

According to Land Registry statistics, the number of property sale contracts deposited by non-Cypriots in 2009 was down 73% on the 2008 figure and down by 84% on the number deposited in 2007.

In addition to the well known problems blighting the Cyprus property market, this fall reflects the bursting holiday home bubble around the Mediterranean as a whole.

Towards the end of 2009, some buyers entered the market given the signs of some growth, but the flat or contracting economy, the risk of higher euro zone interest rates and the glut of properties on the market currently don’t give much hope for 2010.

Speaking to the Cyprus Weekly, RICS Cyprus executive board member Pavlos Loizou MRICS, said: “In 2009, the residential market in Cyprus experienced price declines between 10-15% in Nicosia and the other cities, 25% to 30% in the tourist areas and between 10-20% in permanent residence areas.

There are limited signs of recovery within 2010, and Cyprus will continue to experience a depressed market.

The RICS European Housing Review is available at http://www.iut.nu/Facts%20and%20figures/RICS/2010EuropeanHousingReview.pdf.

Readers' comments

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  • KAP Monty says:

    10 years ago the following points were the main reasons for buying in Cyprus:

    1. The weather
    2. The property prices were reasonable
    3. The cost of living
    4. Crime was the lowest in Europe
    5. English spoken
    6. Drive on the left
    7. Exchange rate was reasonable
    8. Clean beaches
    9. No graffiti
    10. Clean and pleasant land
    11. The Cypriot people were honest and welcoming.

    What’s left now:

    1. The weather
    2. English spoken
    3. Drive on the left
    4. Most Cypriot people are honest, mainly the older generation, the real Cypriots from the 60’s.

    Cyprus is dying a slow and horrible death.

    Get rich quick, rocketing theft, builders rubbish, illegal tipping, over priced services and goods, graffiti, broken infrastructure, illegal immigration, lack of police, poor medical services, developers committing fraud by re-mortgaging buildings and land 100% paid for by purchaser, banks committing fraud by sanctioning developers loans and re-mortgaging, legal system broken, Title Deeds deliberately withheld, burglary rife, road infrastructure crumbling and beaches covered in rubbish.

    Get back to basics, fix the rot and and life will get better for all concerned.

  • baileyboy says:

    I would be surprised if the Cyprus property market doesn’t take many years to recover that is if it ever does.

    The adverse publicity the island is receiving about dodgy developers, lawyers and banks together with the amount of disillusioned and disheartened people who are returning to the UK, does not auger well for the future.

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