Property in Cyprus continues to get cheaper

The struggling Cyprus property
market shows no signs of improvement this spring with rents and property prices
continuing to fall.  While slipping
prices are good news if you’re thinking of buying a property in Cyprus, the
country’s housing market continues to be subdued.

Keep reading to learn more about
the state of the Cyprus property market.

Property in Europe remains weak while other parts of the world flourish

According to Pavlos Loizou, a
board member of Royal Institution of Chartered Surveyors (RICS) Cyprus, both
rents and property prices have continued to drop in Cyprus during the first
quarter of this year, following similar tendencies to those of the last quarter
of 2011.

The Cyprus Mail reports that ‘this was mainly down to the unfavourable
economic climate, negative economic forecasts, lack of funding and low
performance.’

The report comes as the RICS Global Commercial Property survey shows
that renters’ and investors’ expectations of the property sector have improved
in many parts of the world for the first quarter of 2012.

Countries such as Brazil, China,
Canada and Russia are seeing demand for homes far exceed supply while other
countries that have seen an improvement include Malaysia, India, Thailand and
the USA.

However, most of Europe remains
week according to the RICS report, with the exception of Germany and Poland.

Mr Loizou explained: “In Cyprus,
property and rental prices continue to drop, mainly due to the unfavourable
economic climate, the negative forecasts for the broader economy, the lack of
sponsorship and the low performances.”

The expert believes that unless
rents start to stabilse, the Cyprus property market would continue to
struggle.  He concluded: “We are
going through a long period of trying to balance the rentals with the prices,
which will be followed by an extended period of inaction, until the economy
stabilises and starts to recover.”

written by Nick
Marr