For investors interested in the Cypriot housing market, now could be an ideal time to investigate potential properties. The latest news from the country is that although property prices have fallen, the decline is slowing. Combined with marginal increases in the rental market, this could indicate an end to the fall and make now the ideal time to buy, particularly for those who have an invested long-term interest in Cyprus.
During the third quarter of 2015 Cyprus began to show signs of economic stability after a long period of turbulence. The housing market is still struggling, with an overall low volume of sales; however, as the nation continues to recover, there could be hope for the property sector.
Across Cyprus apartment prices dropped by just 0.4% and house prices fell by 0.5%, according to the latest data issued by the Royal Institution of Chartered Surveyors (RICS). There was notable variation across the country, with certain areas seeing larger drops. House prices were 3.2% down in Limassol compared with just 0.3% in Nicosia, for example, while Famagusta saw a 1.2% drop in the price of apartments.
While the news might not be good for current property owners, those wanting to invest could do well by closely following market movements. As part of the RICS report, experts pointed out that the falling figures have slowed significantly for most Cypriot cities. The volume of sales year-on-year has also risen and certain areas, including Larnaca, Paphos and Famagusta, are noting situations where the housing market is bottoming out. There was additional good news for rental rates and although yearly comparisons saw small falls, average income rose quarter-on-quarter. Apartments saw 0.3% growth, whilst there was a rise of 1.5% for houses.
Elsewhere there was positive data from Cyprus’s Department of Lands and Surveys. It was shown that the number of monthly sales rose across Cyprus except in Larnaca, where the number of transactions dipped by 1%. In Nicosia, Paphos, Limassol and Famagusta sales increased by 64%, 30%, 28% and 4% respectively; however, this is based on a low overall sales volume, with the third quarter of 2015 seeing just 463 commercial, residential and building plot sales. Despite this low number the Land Registry figures showed that sales figures have risen for the first 10 months of the year; in fact, they have increased by 8% when compared with the same period in 2014, with a total of 3,993 transactions recorded.
Although the market is far from stable, there could be an opportunity for long-term investors to take advantage of the weak market and buy property while the price is low. All current indications suggest that the market has begun to bottom out and could note future gains. For those interested in buying property, particularly individuals who don’t require a fast turnaround on houses and apartments, affordable deals can be easily found.