NOW is your chance to have your say on what needs to be done to set the Cyprus property market on the road to recovery; what do you consider to be the most important factor?
Property sales in Cyprus have plummeted in recent times and many reasons have been given for their decline:
The economic situation – unemployment levels in Cyprus have reached unprecedented levels having doubled in the past 30 months. The ratings agencies Standard and Poor’s, Fitch, and Moody’s have downgraded Cypriot banks and the Island’s economy. Most recently, the IMF warned that the economic situation “demands a strong and immediate policy response” from government.
If the Island’s economic situation were to improve, would this stimulate the property market?
High interest rates – bank lending rates are now amongst the highest in the Euro zone area and there has been a tightening of credit standards for loans to households for house purchase.
If borrowing criteria and interest rates were to fall, would this help the property market to recover?
Overpricing – property prices increased out of all proportion during the boom years and people were prepared to buy at those prices. But now that the years of frenzied speculation have come to an end, property prices in some parts of the Island have fallen by 30 percent.
Would further price cuts restore the property market?
Lack of Title Deeds – as a result of the Title Deed fiasco, which has led to property unscrupulous developers exploiting property buyers financially, Cyprus is no longer considered as a “safe” place to buy a property unless its Title Deed has been issued and is readily available.
If Title Deeds were readily available on delivery of a property, would help the property market to recover?
Poor build quality – many properties have been built to standards that are less than adequate. Problems with rising damp, leaking roofs, ill-fitting windows, lack of heating, plumbing and electrical issues and are amongst the most common reported.
Would improved building standards and quality restore the market?
More attractions such as golf courses, marinas and theme parks – there has been much talk about providing recreational and other facilities that would tempt more potential buyers to the Island.
Are these key to restoring the property market?
Other reasons – we know that there are many other problems faced by those buying property including lawyers who fail to represent the interests of their clients, the ‘secretive’ nature of the Land Registry and Planning authorities that make it difficult to uncover information about a property and plans for other developments in the vicinity, long delays in getting any form of justice through the judicial system, etc.
Have your say
WE are running a poll to discover what our readers believe is the most important factor in getting the Island’s property market back on its feet.
Just click on the button in the ‘HAVE YOUR SAY’ entry in the right hand column that you consider will have the greatest positive impact on property sales. (As you can only vote once, please consider your answer carefully).
We will be running the poll until the end of November, so check back frequently to see how it is progressing.