T
totallyproperty
Administrator
Staff member
Cyprus property market
While it would be wrong to suggest that the Cyprus property market is booming as of 2016 it is often unfairly seen in the same light as the troubled Greek property market. These are very different economies and very different property markets, a fact which is borne out by the announcement that Cyprus has exited the €10 billion bailout from the IMF. This is a major turning point for a country which was struggling and while there is still much work to be done it certainly separates Cyprus from Greece.
Economic performance
When you bear in mind that gross domestic product in Cyprus increased by 0.2% in 2015 after a fall of 3.7% in 2014 we are certainly starting to see signs of recovery. As we touched on above, the exit from the IMF bailout should not go unnoticed as this is a perfect reflection of the country’s growing strength. We can only hope that the Cypriot authorities do not take their foot off the gas now that they have exited the IMF bailout (and its many restrictions) giving them significantly more room to manoeuvre.
It would be wrong to suggest it will be plain sailing from here on, especially in light of the troubled European economy, but finally there is hope on the horizon.
Property market
The Cyprus property market has been impacted by a lack of transparency in years gone by and issues surrounding property deeds. Slowly but surely the regulatory structure has been improved but there may still be years of legal wrangling to resolve every outstanding issue.
It is also worthwhile reminding ourselves that the average cost of a house in Cyprus has fallen by more than 30% since 2010 with a 40% reduction in the cost of apartments. In light of such a reduction in property prices it is perhaps no surprise to learn that a property investment visa along the lines of those introduced by the Spanish and Portuguese governments was also brought into play by the Cyprus authorities.
Immediate outlook
While there have been a number of false dawns regarding a potential recovery in the Cyprus property market nothing has emerged as yet. One issue yet to be resolved is that of the raft of properties repossessed by Cypriot banks after customers defaulted on their mortgage payments. There have been rumours that the banks will bail out of these properties at a significant reduction to the perceived market value and this is not helping investor demand in the short to medium term.
If you were an investor looking at the Cyprus property market with a long-term view, would you be in a rush to jump in when you know that a whole host of repossessed properties may soon be dumped on the market?
Future
We have seen an array of international investors take advantage of the property investment visa which has helped to support the property market in the short term. Recent news has been more encouraging with regards to positive economic growth not to mention the country’s recent exit from its IMF bailout. There is certainly more hope now for the longer term but the short term performance of Cypriot property very much hinges on the array of repossessed properties overhanging the market.
While it would be wrong to suggest that the Cyprus property market is booming as of 2016 it is often unfairly seen in the same light as the troubled Greek property market. These are very different economies and very different property markets, a fact which is borne out by the announcement that Cyprus has exited the €10 billion bailout from the IMF. This is a major turning point for a country which was struggling and while there is still much work to be done it certainly separates Cyprus from Greece.
Economic performance
When you bear in mind that gross domestic product in Cyprus increased by 0.2% in 2015 after a fall of 3.7% in 2014 we are certainly starting to see signs of recovery. As we touched on above, the exit from the IMF bailout should not go unnoticed as this is a perfect reflection of the country’s growing strength. We can only hope that the Cypriot authorities do not take their foot off the gas now that they have exited the IMF bailout (and its many restrictions) giving them significantly more room to manoeuvre.
It would be wrong to suggest it will be plain sailing from here on, especially in light of the troubled European economy, but finally there is hope on the horizon.
Property market
The Cyprus property market has been impacted by a lack of transparency in years gone by and issues surrounding property deeds. Slowly but surely the regulatory structure has been improved but there may still be years of legal wrangling to resolve every outstanding issue.
It is also worthwhile reminding ourselves that the average cost of a house in Cyprus has fallen by more than 30% since 2010 with a 40% reduction in the cost of apartments. In light of such a reduction in property prices it is perhaps no surprise to learn that a property investment visa along the lines of those introduced by the Spanish and Portuguese governments was also brought into play by the Cyprus authorities.
Immediate outlook
While there have been a number of false dawns regarding a potential recovery in the Cyprus property market nothing has emerged as yet. One issue yet to be resolved is that of the raft of properties repossessed by Cypriot banks after customers defaulted on their mortgage payments. There have been rumours that the banks will bail out of these properties at a significant reduction to the perceived market value and this is not helping investor demand in the short to medium term.
If you were an investor looking at the Cyprus property market with a long-term view, would you be in a rush to jump in when you know that a whole host of repossessed properties may soon be dumped on the market?
Future
We have seen an array of international investors take advantage of the property investment visa which has helped to support the property market in the short term. Recent news has been more encouraging with regards to positive economic growth not to mention the country’s recent exit from its IMF bailout. There is certainly more hope now for the longer term but the short term performance of Cypriot property very much hinges on the array of repossessed properties overhanging the market.
