The recent high profile troubles that Cyprus has been going through concerning the EU bailout and the emergency levy on bank savings may be having a surprising effect on the domestic property market.
The Mediterranean island’s deteriorating economic position continues to hit the property market there, where prices have been falling since 2007.
The latest index from the Royal Institution of Chartered Surveyors (RICS) has recorded significant falls across Cyprus’ major urban areas, with both sales values and rentals affected across all areas of the island during the last quarter of 2012.
Nicosia and Limassol were the hardest hit as compared to the fourth quarter of 2011 prices dropped by almost 8% for apartments and over 5% for houses.
The cycle of boom and bust in property terms revolves around the idea that prices eventually fall to a level which they will not go below, and then inevitably start rising again.
It is correctly gambling on this crux point that provides the biggest opportunity for an investor to make the greatest returns.
Many thought that Cyprus property prices had ‘bottomed out’ but now the latest turn of events has made the situation even more volatile.
With the latest official figures from the Cyprus Land Registry offices showing sales in March to be the lowest monthly figure since records began, representing a drastic fall of 49% compared with March 2012, it really does seem that things might still go from very bad to quite a lot worse.
Although there definitely seems to be an increased level of interest from potential overseas buyers, this has not yet translated into real term sales.
If you are looking to invest in Cyprus, think carefully about how you will send money abroad. There are many different options available, so you need to carefully compare the market beforehand to make sure you get the best deal.