Cyprus Estate Agents Concerned About the Future Property Market
The Cyprus Real Estate Agents Association (ΣΚΕΚ) has recently acknowledged the recent stagnation of property purchases within the Cyprus housing market. Many have attributed the slowdown to the complex procedures and red tape that lenders and banks in Cyprus have to follow.
However all is not lost, reports also show that the real estate market in Cyprus improves marginally year by year, especially thanks to the government making it more appealing foreign investment by introducing a number of incentives.
“The market is progressing year after year no matter how small; there is growing confidence from purchasers, upcoming projects, multi-story luxury construction sites, which all attract high calibre buyers, who purchase affluent properties in order to gain European passport through the Citizenship-by-Investment scheme. However, non-nationals also buy less expensive properties for secondary or holiday homes.
Although real estate prices in Cyprus are generally quite low at the moment, and it is a great financial climate for locals to buy properties in 2017, unfortunately the market is not seeing the purchases it should, compared to foreign spending; a level of stagnation remains among Cypriot buyers.
Typically, the publications and advertisements of the banks are not in keeping with reality regarding loan and security requirements. The banks ask investors who want to tap their deposits to purchase a property to submit an extensive amount of documents which can be a deterrent.
Foreign investors who transfer millions of euros to the island in order to purchase properties also face extensive bureaucracy. As interest rates in Cyprus are also low and the average rent is rising, experts are encouraging Cypriot based buyers to come forward. As a result of the upward tourism trend, many apartment owners prefer to make their properties holiday rentals which typically charges a high daily rate; bringing the average rental price in Cyprus up considerably.
The Chairman of the Association stated that negotiations regarding the island reunification also cause concerns among potential buyers both locally and from abroad, however he informed via publication that property prices will not be affected whatever the outcome may be with the Northern side of the island. In the worst case scenario, prices may stay stable for years to come, however they will not fall, he reassured.