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Cyprus property prices down

As the property crisis continues to worsen, prices of residential properties in the urban centres have dropped by more than 10%, while prices of summer residences have fallen between 30% – 40%.

SPEAKING earlier today Chairman of the Cyprus Land and Building Developers Association, Lakis Tofarides, confirmed that the prices of main residences in Nicosia, Limassol, Paphos and Famagusta have decreased by more than 10%.

Mr. Tofarides also predicted that prices will not drop further in the urban centres and urged citizens to continue to invest in property.

He stressed that land prices remain stable. “The value of land, which once represented 18% of the total value and now represents 45%, will not drop”, he noted.

The state receives more than 27% on the price of land. Therefore, if we add the doubling on the value of land and the doubling on the state revenues, you will understand why the cost of construction surged by 20% in the past 10 years”, he said.

Speaking within the framework of the 5th Land Development Conference, Mr. Tofarides said that the government’s measure for the strengthening of the House Financing Organization through granting €200 million for lending purposes is wrong as it does not contribute to the market’s revitalization. The Chairman recommended increasing the ceiling of income criteria from €40 thousand to €50-60 thousand.

So far, the Organization has only granted €35-40 thousand”, he added.

He also recommended that the government should be more flexible in relation to interest rates. “For example, when income is no higher than €40 thousand, the beneficiaries should borrow without interest for the next two years, while when the income stands at €60 thousand, they should borrow without interest for one year”, he noted.

Mr. Tofarides also proposed the abolition of the Cyprus Organization of Land Development and the acquisition of services by the private sector.

We do not agree with this one-sided treatment of one more professional sector. I am sorry to say that it is not in line with the EU and the market has hundreds of professionals that face many problems. Why not give the money to them?”, he wondered.

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