Most of the people who buy leads from our company wants them in Cyprus. But I personally don't think that's a good investment.

Here's an extract from an interview with the Cyprus Land Registry Manager:

In a recent interview with StockWatch the Land Registry manager, Andreas Christodoulou, advised Cyprus property investors to expect a lower return on their investments as the market has entered a period of recession.

In his interview, he said that property prices will stabilize in the next four years - then they will recover but at a slower pace, as prices neared those of the competitive European markets.

Mr Christodoulou noted that demand in the property market has fallen by an average of 40%, the highest drop of 50% being recorded in Famagusta and the lowest in Nicosia and Limassol, where it has dropped by 12%. This mostly affects houses and apartments in seaside areas. But Mr Christodoulou added that “The demand for plots remains stable“.

Regards

__________________
Nigel Howarth
Independent information & advice for Cyprus property buyers
Read the latest Cyprus property news at: http://www.news.cyprus-property-buyers.com/

As international investors desert the Cyprus property market as the global economic crisis rages on, sales, especially of holiday homes, drop by 40 per cent and the market heads towards a recession. Despite this, Cyprus remains a good long term investment…

Despite the number of sales falling in Cyprus, the country remains a good long term investment.

Following sharp rises in prices over the last few years - a steady increase of up to 15 per cent per year on year- a second tier of growth in Cyprus at the end of 2009 is expected, with the opening of the new airport terminal, and, with this, more budget airlines offering cheap flights to the island.

The recently discovered oil reserves just off the Southern Coast will make the country a viable prospect for long term investment as it will boost the economy and bring solid employment prospects to the market.

However, short term, as is the case with the majority of markets at the moment, the Cyprus property market has been hit hard by the dramatic drop in sales.

Hardest hit has been the second homes and holiday homes market, due to a current lack of property investment from the UK.

The country’s Finance Minster, Charilaos Stavrakis, has warned that the decline in sales will have a large impact on the island’s revenue as it means a reduction in Capital Gains Tax, which has already fallen by 18 per cent this year alone.

Mr Stavrakis said, “The downturn in the market - the Land Registry has found that sales have fallen by 40 per cent- is expected to affect public revenues.

“The Government is taking this into account and if recession continues it will take additional measures,” he added.

“The falls in capital gains tax was expected due to the dependence of the property market on the British market which is experiencing an economic crisis due to the drop in the value of Sterling,” Mr Stavrakis added.

The Government expects activity in the property sector to continue shrinking in 2009. As well as lack of foreign investors the property market is also suffering from more lending restrictions. There is no doubt that Cyprus is a fairly tricky property market to deal in, with many properties and areas still under dispute from before the time the island was separated.

The Cypriot Government have put in place a number of restrictions to deter foreign speculators who may be looking to take advantage of the boom time. EU nationals that are current residents in Cyprus have the freedom to purchase as much property as they wish. EU nationals that are not residents are restricted to one house or apartment that has received approval from the Council of Ministers.

Non EU nationals must seek approval from the ‘Council of Ministers’ to acquire any property. Even then, ownership will be strictly limited. There are plans for the Cyprus market to be de-restricted which will open up investment opportunities.

The other major factor behind the long term investment potential of Cyprus is the much talked of reunification.

The Cyprus President, Dimitris Christofias met Turkish Cypriot leader Mehmet Ali Talat to discuss reunification, and

Mr Christofias said, “This is a common will, a common desire and we shall take a common effort to achieve this target for all Cypriots.”

If the two sides can come to a final agreement, it could open up the Northern property market in the Turkish side of the island to international investment. It will also act as a further boost to the ever-popular market in the Greek side of the island

If and only IF there ever was a solution to the cyprus problem, I cannot see how that would give a boost to Southern Cyprus property market, quite the opposite maybe.

Can I just point out that one of the first replies to this thread got it horribly wrong. The property market has yet to crash, Brits are still buying on Cyprus and none of the island's three or four large developers have gone to the wall yet! I think Cyprus is a good place to invest - it is near to many markets other than the UK including much of the middle east including Israel as well as southern spain. It is also an incredibly tax-efficient place to live with a base tax rate of 5 per cent - the best in Europe, of which it is a member. Yes, it is overdeloped. yes, parts of Paphos are wildly over-priced and sensitive to the global downturn. And yes, some of the city suburbs are very ugly and concreted. But so far Cyprus has survived two years longer than the first poster predicted. Surely a reason for hope!

You must be an agent or developer or associated to one or several.

Hi - no, I'm not an agent or developer. I bought my first buy to let in France recently after looking very carefully also at Cyprus, Bulgaria and Crete but fell for a leaseback scheme in the Pyrenees. That was just my honest appraisal of Cyprus - from research, an inspection trip and several holidays!

"fell" for a leaseback scheme - sounds about right based on postings elsewhere on leaseback schemes in France. At first glance they seem o.k. but once you get down to the nitty gritty.......

Coastal property sales slump 40 per cent
(archive article - Saturday, November 22, 2008)

PROPERTY sales in coastal areas have dropped up to 40 per cent as a result of flagging demand from foreign buyers, though prices are generally stable, estate agents said yesterday.

“There is a big decrease in demand, especially from outside and especially from the British market, who are our traditional customers,” said Solon Kourouklides, chairman of real estate agents.

Cyprus Mail Internet Edition Click on "Search by Date" hyperlink.

Construction sector may axe 20,000 jobs
By Stefanos Evripidou
(archive article - Tuesday, November 25, 2008)

Association head sees Cypriots as the first to go

THE PREDICTED downturn in the construction sector could see around 20,000 jobs lost, the head of the Cyprus Building Contractors’ Association warned yesterday.

Speaking at a news conference, Sotos Lois said according to the association’s estimates, construction work in the private sector, worth €850 million in 2007, will drop by 30 to 40 per cent as a result of the economic downturn.

Lois highlighted that if the estimates are proved correct, this will translate into 20 per cent job losses.

Cyprus Mail Internet Edition Click on "Search by Date" hyperlink.