Property in Cyprus still struggling to sell despite price falls

Despite significant price reductions of property in Cyprus, estate agents are still struggling to attract buyers.  Prices in the popular destination of Paphos continue to fall steeply and despite the abundance of property bargains, many agents are still struggling to find buyers for homes.

Price falls in Paphos making property in Cyprus extremely cheap

Property prices in Paphos have fallen by at least a quarter in the last eighteen moths reports Cyprus Property News, and yet very few properties are being sold.  Natalie Alexiou, an experienced property professional with thirty years in the business has never seen the market in Paphos so depressed.

She said: “A villa which would have previously sold for €450,000 [£278,700] is now going for €300,000 [£185,800], and an apartment priced at €125,000 [£77,400] is now selling for €80,000 [£49,600].  And this has all happened in the last year and a half.”

The price falls have been attributed to the problems with title deeds in the country, banks imposing stricter mortgage criteria and the global financial crisis.

A bank manager in Paphos told the Sunday Mail that lenders in Cyprus have reduced the number of property loans agreed by around half.  He said: “Even if there is a demand to buy, banks are afraid to lend and try to avoid it.  There doesn’t seem to be any good news for the housing market in Paphos.”

Some estate agents optimistic about property in Cyprus

While prices have dropped in some areas of Paphos, some agents are more optimistic about prices and believe the market is picking up as more overseas buyers come to the country.

George Mais, the president of the Paphos branch of Cyprus’ Land and Building Developers’ Association believes that while ‘some properties or locations just aren’t popular anymore’, new properties or those in a good seafront location are holding their value.

Overseas buyers, particularly those from Russia, are returning to Paphos ‘because it is quiet, there are many areas of outstanding natural beauty and it’s safer than a lot of other towns in Cyprus,” he said.