Taylor Scott International News
Residential property prices in Cyprus appear to be stabilising but experts are divided on how the market will pan out over 2016. The most up to date figures from the Cyprus Central Bank’s index covering the third quarter of 2015 shows that prices fell by 0.3%, consistent with the 0.4% and 1% falls during the previous quarters. Year on year prices are down 3.7%, an improvement on the previous quarterly fall of 5% and a breakdown of the figures suggest that apartment prices in some locations, most notably Limassol, Larnaca and Paphos are rising, a further sign of stability in the market. The biggest fall in prices quarter on quarter was in Famagusta with a decrease of 1.6%, followed by Nicosia down 1.3% and Limassol down 0.1%. While prices in Larnaca and Paphos rose by 1.2% and 0.2% respectively. Apartments are showing signs of more resilience. While quarter on quarter apartment prices fell 1.5% in Famagusta and 0.6% in Nicosia but increased by 2.1% in Limassol, 1.5% in Paphos and 0.3% in Larnaca. According to Daryl Fitzgerald, director of Fitzgerald Estates Agency in Paphos, pointed out that sales are also improving. They increased by 64% in Nicosia, by 30% in Paphos, and by 28% in Limassol in October. But fell by 1% in Larnaca. He pointed out that the statistics show that 96% of total property sales in Nicosia were registered to Cypriot nationals whilst only 4% were bought by overseas buyers, suggesting that international buyers are not yet coming back to the market in the city. But in Paphos, which has the largest number of holiday homes registered to overseas owners in the whole of Cyprus, there has been a 103% increase in sales to Cypriots in October. ‘From the brink of the financial and banking abyss, Cyprus is steadily emerging a stronger economy and a stronger nation. The financial restrictions are but a memory, our banks have been upgraded and almost given a clean bill of health, the title deeds issue is being dealt with and the buyers have more and more tools to fight the good fight to get the deeds,’ said Fitzgerald. He believes that what is happening in Paphos is interesting as it was the centre of the property bubble on the Mediterranean island. ‘The sudden interest by Cypriot buyers signals that the prices have reached bottom and are stabilising. Cypriots know this and are taking advantage of this once in a lifetime opportunity,’ he explained. However, the latest report from Resolute Asset Management in Cyprus suggests that 2016 is not set to see a revival of the real estate market. It says that while sales increased by 9% in the first 11 months of 2015 compared to the same period in 2014, compared to 2007 sales are still down by 79%. The firm believes that sales volumes will remain low in 2016. Its report suggests that foreigners who are tempted to buy in Cyprus will be concentrated on… Taylor Scott International
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