THE NEWLY published Real Estate Dynamics report by Ernst & Young Cyprus Ltd (EY) provides a valuable analysis of the many factors that are currently affecting the Cyprus property market.
The twelve page report draws data from a number of sources, including the Department of Lands and Surveys, the Central Bank of Cyprus, the Royal Institution of Chartered Surveyors (Cyprus), and the International Monetary Fund.
Of particular interest is a map showing the annual fall in apartment and house prices together with the number of transactions in each of the Districts. It shows that the higher the reduction in prices, the greater the rise in the number of transactions. I.e. If prices fall, sales increase.
The reports points out that the island’s construction and real estate sectors have been hit hard by the economic crisis and continue to face significant challenges and that while mortgage interest rates have fallen over the past year, they are still considerably higher than the Eurozone average mortgage interest rates.
The market has also been adversely affected by the uncertainty over the implementation of the foreclosures legislation passed last year, whose implementation is currently blocked by opposition MPs. EY considers that the implementation of the legislation is expected to dramatically shorten the amount of time required to repossess property used as collateral, ultimately leading to enhanced activity in the real estate market.
Cyprus Real Estate Dynamics – issue 1 Ernst & Young Cyprus Ltd.