2012 A Bad Year For Cyprus Property Sales
News Posted On: 12 December 2011
Just when you think things are hitting their lowest point you learn that foreigners sales fell 43% year on year in Cyprus in November. With foreigners purchasing just 103 properties in the month it was the second worst month this year for foreign sales.
Nicosia was hardest hit; foreigners purchased just 6 properties there in November, which is an 80% year on year decline. Larnaca isn't far behind with sales down 50%, followed by a 40% decline in Paphos and a 36% decline in Limassol. Famagusta got off relatively lightly with sales down 4% on the year.
With these declines Cyprus is heading for the worst year yet in terms of foreign sales. Total sales to foreigners have yet to reach their 2009 level, which was the year crisis struck and what had been the worst year.
There is no quick end in sight says Iros Miltiadous, Business Development Director of Aristo Developers. "Unfortunately, the market is unpredictable and may deteriorate further or improve at any time," he said.
Speaking to OPP Polys Kourousides said that prices will have to fall further before we can expect recovery. Kourisides highlighted a lack of confidence in he market, lack of liquidity and lack of availability of loans. "However, even if the access to loans becomes easier, investments are not made due to the high cost of money", he added.
Kourousides is convinced that the decline will continue until the problems are solved and the banks start granting loans again in a sensible and timely fashion.
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Written by Liam Bailey
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