An increase in unemployment and lack of local demand has seen the values of property in Cyprus fall in the first quarter of 2012. The country, which has recently applied for an EU bailout, saw a Ã¢â¬ËdisappointingÃ¢â¬â¢ fall in property prices in the first quarter of 2012, according to the latest figures from the Royal Institute of Chartered Surveyors (RICS).
With prices falling, opportunities exist for foreign investors to snap up cheap property on the island, as we explain here.
Lack of local demand to blame for steep property price fall
RICSÃ¢â¬â¢ Cyprus survey notes: Ã¢â¬ÅThe Property Price Index has recorded a disappointing behaviour in property prices across CyprusÃ¢â¬â¢ major urban areas, with prices and rents falling across all districts.Ã¢â¬Â
The report found that prices of residential houses in Cyprus fell by 2.4 per cent in the first quarter of 2012, with the price of flats falling by 2.6 per cent. Limassol saw the biggest fall with prices falling by 6.5 per cent for apartments and 5.2 per cent for houses in just three months.
Over the last year, apartment prices in Cyprus have fallen by 10.8 per cent. The price of houses has fallen by 6.3 per cent in the same period.
RICS concludes that Ã¢â¬Ëall asset classes and geographies continue to be affected, with areas that had dropped the most early on in the property cycle now nearing the troughÃ¢â¬â¢.
According to Pavlos Loizou, member of the RICS board in Cyprus, the first quarter of 2012 saw buyers postpone their decision-making. He said: Ã¢â¬ÅThis led to low transaction turnover and reduced interest, especially by local buyers, as they were more affected by the increase in unemployment and the decrease in credit.Ã¢â¬Â
While local demand for property in Cyprus has fallen, overseas demand is still robust. With prices falling, itÃ¢â¬â¢s a great time for overseas buyers to snap up property on the island.Ã¢â¬Â
Author : Nick