Cyprus property prices match Spain

Investors who are planning to invest in Cyprus property are now changing their sights to Spain after a shock survey in the island’s premier and business newspaper of the local real estate market.

The increased prices for the last year are driving investors away with a sudden durge of prices dropping, with places such as Pathos already eyed to be those in Spain, according to the Financial Mirror, a credible newspaper in Cyprus which deals with economic, industrial, financial and investment news in Cyprus.

During the first half of the year, a financial drop of 29 percent year on year to CYP 492 mln compared to CYC 626 mln a year ago in the same period, according to the Land Registry figures.

There are several changes in the real industry sector, factors which took on the blame for this perennial decrease in sales: introduction of vat, higher government transfer of fees, the increased cost of construction materials, transfer of foreigners to the north of the island, slow down of the economy and income growth.

However, the newspaper is quick to point out that the figures are still more than the figures of 2003 when CYP 411 mln of property deals with done with the same figure.

The Financial Mirror has this to say: “It is because of the sharp decrease on the property prices that the real estate declined, according to industry experts. Paphos is now at par with Spain, driving the rest of the foreigners to the other country.”

In Cyprus, building permits have now declined and the cost of construction have now increased to 11.8 percent in the first half of 2005. Developers have now shifted attention to apartment blocks than villas or individual houses, which is a very fair move for these developers. Blocks are now easier to construct than houses or villas.

Posted on: Cyprus

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Cyprus property prices match Spain

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