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Property prices in Cyprus |
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Written by Administrator
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Sunday, 07 August 2011 |
Property prices in Cyprus
Nowhere has escaped the fall in property prices and Cyprus in no exception. The economic bulletin published by the Central Bank of Cyprus shows that average property prices fell by 1.8% in the first three quarters of 2010 compared with a fall of 4.1% in the whole of 2009.
This is the first time that the survey has been published but gives a useful insight into the trends in a sector that accounts for almost 21% of domestic loans .
But the overall fall for the year hides the recent increase in activity. Ahmed E Kandil, MD of Dorchester Estates in Saudi Arabia stated in a recent conference that international demand was driving the recent upward movement in property prices in Cyprus. His sentiment is reflected in comments by Anthony Nathanael of Pafilia, a Cypriot search and builds company on the island. It appears that Saudis are looking to Cyprus as a holiday and retirement destination and are seeking out villas, apartments and homes.
Property prices in the Northern part of Cyprus are still below those of the south. With all property disputes now settled there is hope that a full political settlement will occur before Cyprus holds the rotating EU presidency. That can only mean that the north of the island will see property prices climb as investors take advantage of any settlement.
But builders are active again all over the island. The Aphrodite Hills complex o near Paphos represents the top end of the market and takes full advantage of the stunning south western coastal location. Sales are currently being made to mainly British investors (nearly 2/3rds) with a healthy input from Russian buyers (around 30 percent). The resort consists of 44 villas and gives access to a new 18 hole golf course and tennis complex. Ownership includes and introductory 2 year free membership to both.
Nicosia still has a booming rental market and year round demand from both residents and tourists. As land has become more scarce new developments have slowed meaning that existing stock has benefited from the increased demand. As the political and commercial centre of Cyprus there is a steady demand from students, workers as well as tourists. All new developments are being sold off plan with developers not starting work until they have raised all the money necessary. That means a long wait for any potential investor but with a history of British law the system of land registration is well developed giving some comfort to those looking to acquire property.
Larnaca is still a favourite with investors. Whilst the town itself benefits from local purchasers it is the surrounding coastal region where developers have built holiday homes for ex patriot investors. With all the benefits of a city and only 10 minutes drive from an international airport it continues to be a favourite destination for British and returning Cypriot visitors. Approximately 90% of all recent holiday villas on the outskirts of Larnaca were acquired by British people.
Limassol property prices were significantly boosted by the arrival of a number of Russian offshore companies in the 1990`s. As such the whole property and tourist market is driven by Russian trends and needs. Housing stock tends to be 10% lower in price compared to Nicosia and Paphos but 10% higher than Larnaca. Protaras and Larnaca offer better facilities than many destinations on the island and tend to be cheaper than comparable property in Limassol.
As a well developed holiday destination there are no problems with car hire Paphos airport is one of the many car rental sites meaning that you can step off the plane and be driving on the island within minutes of your arrival.
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Property prices Cyprus 
