Cyprus Property News magazine for overseas buyers & real estate investors

Friday 10th July 2020
Home Investor Centre Confusion over Cyprus property values

Confusion over Cyprus property values

Confusion over Cyprus property valuesTHE EUROPEAN Central Bank has found that properties in Cyprus remain undervalued by between 4% and 16% but the European Commission remains convinced they remain overvalued by 5% due to a pre-crisis artificial inflation of prices.

The position of the Central Bank of Cyprus is in line with its European counterpart; prices have fallen to late 2006, early 2007 levels which the bank consider reflect realistic values.

According to the European Central Bank, Cyprus property prices from the first quarter of 2007 until and including the second quarter of 2014 were too high, but became undervalued by the fourth quarter of 2015 by between 4-16%.

However, the European Commission says that taking into account property prices between the first quarter of 2002 to the first quarter of 2015, prices remain overvalued by some 5% in comparison to their long-term average value.

Copyright © Phileleftheros Public Company Ltd

3 COMMENTS

  1. If one wants to have an actual idea of the Cypriot property market, just look at the average rental prices here in Cyprus…then do the maths, taking into account an average real estate European yield of 6% (although Cyprus economy is rather at the low end of the European economies rather than at the average)…and then you will realize that Cyprus real estate market is over evaluated 120% …:)

    ps : when taking into account the rental prices, don’t ask the real estate agents, just ask in the neighbourhood (where you are planning to buy) how much people are devoting to their rent for a similar property…:)

    Ed: As it says repeatedly in the RICS (Cyprus) Property Price Index:

    “The parallel reduction in capital values and rents is keeping investment yields relatively stable and at low levels (compared to yields overseas). This suggests that there is still room for some re-pricing of capital values to take place, especially for properties in secondary locations.”

  2. Well now, it all depends which pair of glasses you’re looking through, doesn’t it. The Commission doesn’t have any money tied-up in these properties, whereas the banks….

  3. Any property is worth what every someone is prepared to pay for it in condition market conditions. Need too consider that Spain, Portugal, France offer better value property that built to a EU standard. Why would you want to risk investing money in property in Cyprus that if wanted to liquidate at short notice the chances of selling on remote unless give it aware.

    The real facts are that the short lived property boom is long gone with majority of people looking at 2nd homes are very cautious of investing in Cyprus so prices will remain low to generate local sells at current levels with only high end properties being picked up at discount prices by a few Overseas property speculators.

Comments are closed.

WEATHER FORECAST

EXCHANGE RATES

EUR - Euro Member Countries
GBP
1.1171
RUB
0.0125
CNY
0.1267
CHF
0.9422

TOP STORIES

Cyprus’ largest ever housing project will help low-income families

Limassol municipality and the Land Development Corporation (KOAG) reached an official agreement on Thursday regarding the establishment of the largest housing project ever undertaken in Cyprus, worth €100 million.

Corrupt lawyers continue to plunder estates

Corrupt lawyersin Cyprus continue to plunder the estates of their deceased clients by calculating their fees for administering estates on the Cyprus Bar Association's 'Minimum Fee Regulations', which were abolished in 2018

Cyprus house price index up 2.5 per cent

The Cyprus house price index rose by an average of 2.5 per cent in the first quarter of 2020 compared to the previous quarter according to official figures from the Cyprus Statistical Service (CYSTAT)

MPs commit to expedite citizenship bills

MPs have committed to expediting the bills and regulations aimed at improving the transparency of the citizenship-by-investment programme, so that the items can be voted on before the House breaks for the summer recess.