The struggling Cyprus property market shows no signs of improvement this spring with rents and property prices continuing to fall. While slipping prices are good news if youÃ¢â¬â¢re thinking of buying a property in Cyprus, the countryÃ¢â¬â¢s housing market continues to be subdued.
Keep reading to learn more about the state of the Cyprus property market.
Property in Europe remains weak while other parts of the world flourish
According to Pavlos Loizou, a board member of Royal Institution of Chartered Surveyors (RICS) Cyprus, both rents and property prices have continued to drop in Cyprus during the first quarter of this year, following similar tendencies to those of the last quarter of 2011.
The Cyprus Mail reports that Ã¢â¬Ëthis was mainly down to the unfavourable economic climate, negative economic forecasts, lack of funding and low performance.Ã¢â¬â¢
The report comes as the RICS Global Commercial Property survey shows that rentersÃ¢â¬â¢ and investorsÃ¢â¬â¢ expectations of the property sector have improved in many parts of the world for the first quarter of 2012.
Countries such as Brazil, China, Canada and Russia are seeing demand for homes far exceed supply while other countries that have seen an improvement include Malaysia, India, Thailand and the USA.
However, most of Europe remains week according to the RICS report, with the exception of Germany and Poland.
Mr Loizou explained: Ã¢â¬ÅIn Cyprus, property and rental prices continue to drop, mainly due to the unfavourable economic climate, the negative forecasts for the broader economy, the lack of sponsorship and the low performances.Ã¢â¬Â
The expert believes that unless rents start to stabilse, the Cyprus property market would continue to struggle. He concluded: Ã¢â¬ÅWe are going through a long period of trying to balance the rentals with the prices, which will be followed by an extended period of inaction, until the economy stabilises and starts to recover.Ã¢â¬Â
written by Nick Marr