Times are Changing for Cyprus Property Market

Description:

Signs are beginning to show in the UK and other European countries of the property market making a recovery.

 
So does this mean that the property market here in Cyprus is about to pick up? It has been a buyer's paradise over the last few months for cash buyers looking for a bargain.

 
The Famagusta area has seen 2 bedroom apartments going for as little as €80,000 with room for negotiation. Village renovation projects have also seen prices drop for quick sales.

 
Before Cyprus went into the EU in 2004, property prices were very attractive. However, when Cyprus gained EU ascension, prices started to rise at an incredible rate as many Britons came to live out here to either retire or find work.

 
Over the last 5 years, the property market here continued to rise due to more demand for second homes abroad as many home owners were able to release equity in their UK property.
 

Because many property buyers were from the UK, the recession which was affecting the UK was felt in Cyprus towards the end of 2008. Supply for properties far outweighed demand and it was only a matter of time before Developers and sellers would have to bring prices down in line with other EU countries.

 
Will this mean that prices will level out, especially due to the weak sterling against the euro currency?
 
That's a very difficult question to answer and without Cyprus pricing itself totally out of the property market one would hope prices would remain realistic with the rest of Europe, especially considering this is an island where one of the main industries is tourism.

 
The Cyprus Government are investing heavily in the infrastructure to improve services. Paphos International Airport was upgraded last year and the new Larnaca International Airport should be completed by the end of this year.
 

There are also plans for six new marinas to be built at Paphos, Limassol, Coral Bay, Kissonerga (Paphos), Larnaca, Paralimni and Ayia Napa.
 
There may be more reductions to come - it is still very early days in the UK as those 'green shoots' start to appear. Only time will tell but it may take another year for the Cyprus property market to really recover.