Update on the Cyprus Property Market
Published on Tuesday, March 24th, 2009
Napoleon Hill, the author of ‘Think and Grow Rich’ was once quoted as saying “opportunity often comes disguised in the form of misfortune, or temporary defeat”. The property market in Cyprus would seem to reflect these words!
Between 2003 – 2007 property prices in Cyprus increased an impressive 65% according to data from the Central Bank of Cyprus, but 2008 saw falls of up to 25% on some properties. There was also a drop of 27.9% on the number of sales completed between January to November 2008 compared to the same period in 2007, and a 60.5% decline in November 2008 alone.
A 2008 survey of 20 Cypriot developers carried out by StockWatch shows that 16 of the 20 are expecting further property price falls in 2009, and a number reported no sales at all in 2008! So does this mean that it is all doom and gloom for Brits who are in the Cyprus property market or who are considering buying a home in Cyprus? In this update on the Cyprus property market we concentrate mainly on the figures and statistics from the south of the island…
As you know, we at Shelter Offshore have a soft spot for the entire island of Cyprus and are active in the promotion of the very real lifestyle benefits available to those who choose to live, work or retire to the Cypriot sunshine – so imagine how happy we were when a brand new, comprehensive online guide to North Cyprus was launched!
There are fundamental problems negatively affecting the property market in Cyprus at the moment, but there are also elementary reasons why property in Cyprus will avoid the worst of the credit crunch situation and result in the Cypriot real estate landscape remaining fairly robust in our opinion.
If you’re looking for property for sale in Northern Cyprus, chances are you’ve noticed that there is quite a discrepancy between prices between areas and between property types - this can cause confusion. It can be hard to know whether one developer’s properties are better than another, or whether one is just chancing his arm and charging more!
Things are a-changin’ in Cyprus at the moment – in case you hadn’t noticed! There’s a new president in the Republic of Cyprus, a new border crossing on Ledra Street and a new commitment to finding some form of workable solution to the stalemate between the two sides of the island.
Even before January when southern Cyprus joined the Euro it was far cheaper to buy property in North Cyprus. Naturally this has to do with the fact the south has better infrastructure and is more easily accessible – but as anyone who has visited the North knows, you actually get far more for your money than just cash savings when you buy real estate in Northern Cyprus…
On the 3rd of April 2008 the barricade on world famous Ledra Street in Cyprus was demolished and a border crossing erected in its place. The barricade between the Greek and Turkish Cypriot parts of what was the main shopping street in Nicosia back in the days before the 1974 war in Cyprus, had been in place since 1964 and was seen as a physical representation of the barrier that still existed between peace and harmony in Cyprus.
With the cost of living in the UK going up, the rate of interest available on savings income going down and the weather sadly not improving, there are more reasons than ever for those approaching retirement to consider moving abroad to live. If you’re currently contemplating retiring to the sun and are wondering about which country is likely to suit your lifestyle requirements and your pocket, have you considered Cyprus?
If you’re thinking of buying a property in North Cyprus I’m sure you’ve done plenty of homework, you’ve thought about the title deed situation that affects both sides of the island and you’re aware of the developments in the political situation affecting the potential reunification of Cyprus. I’m also sure that you’ve encountered a lot of puzzled looks and confused questions from those who don’t understand your decision to buy real estate in Northern Cyprus.
A recent article in Forbes magazine has revealed some pretty fascinating findings relating to the best and worst property markets in Europe in 2007 - 2008. Unsurprisingly the report has Ireland in first place as the biggest loser in terms of price movements, but the report, which is based on findings from the Royal Institute of Chartered Surveyors, has Cyprus in the number two spot currently for fastest-growing housing markets in Europe.
