Cyprus-Forum.com

[Magnus]

I think this is a pretty good assumption..after all elswhere in the world Builders ( called developers here?) ...
BOF

Just to clarify, the 'builder' is the company in charge of construction. The 'developer' is the person/company that owns the land, pays for the construction and ultimately rents/sells the property.

[Sega]

Are prices coming down? The last time i was in Cyprus i thought the property prices were extremely high. I found this strange as there were so many empty?

House prices in Cyprus are at an all-time high, however, this is soon to change. Currently speaking the main source responsible for the inflation was indeed the British people coming over and purchasing property. Since the UK is having some sort of an economical problem, and most people are tight for cash. I believe this will affect the Cyprus property market. Let's face it, none of the houses are worth the price they are selling them at.

I think this is a pretty good assumption..after all elswhere in the world Builders ( called developers here?) like anybody else have to cut their cloth accordingly, builders being subject to laws developers are not (no doubt someone will be along to swear at me if im not correct) Spains market IS collapsing and the UK always has people going bust in the building trade when theres a slump, and house prices DO fall, eventually the price begins to return when theres an upturn in the economy. The buyer is getting bit more choosy as money becomes scarce and still wants something that represents value in their eyes. they are not going to pay the same price here as they do in the UK for something that isnt of the same quality of build,has no deeds(they are learning) and looks across a small gap into someone elses bedroom. Some developements today are tomorrows slums, and if they wouldnt buy into that scenario at home why do/would they accept it here??..
No, listening to people ive talked to the way for most of them is to rent, its also the advice being given out on forums UK citizens read by people living here..
BOF

Apart from what you stated, Cyprus property prices were driven up because of investment. I know a large amount of people in the UK who bought property in Cyprus purely to make money, many of whom invested in Golf Resorts. Cyprus is no longer going to be the hot spot, there are new places like Bulgaria and Romania that are up and coming, not to mention Poland. In my opinion Cyprus has topped up in property prices, not to say that they will fall, but they will certainly not go any more ludicrous in cost. Anybody that says otherwise has no experience in the property market.

Some Cyprus properties are built well, but many do a half approach in building. I for one have learned many things, I already know which companies will survive the slump and which will struggle, if not go completely bust. It's all down to the quality of housing produced. Developers that were in it for the money, rather than quality houses will no doubt struggle as there will be more choice available. Since many will not be buying house prices will naturally be reduced. This assumption is made since most developers do not completely use their own funds but instead rely on clients/customers to take loans on their behalf and pay them in installments.

PS: Land will also fall, since land prices were inflated by developers.

[Jerry]

Working on the assumption that most of the overseas buyers of property in Cyprus are initially tourists I wonder what the effect of this will have on property prices.

Worst tourist season in history’
By Bejay Browne

Polis eyes local tourism to keep up numbers

THIS SUMMER is the worst in history for tourism to the town of Polis, a local councillor has warned.

Kyriakos Kleanthous, a local councillor from Polis Chrysochous in Paphos, and the president of the local tourism committee, said current figures for the high season of 2008 show only 25-30 per cent occupancy.

Kleanthos hoped August would be better, with most of the visitors to Polis being internal tourists from other towns in Cyprus.

The councillor emphasised one of the reasons for low visitor numbers is due to the high cost of transportation to and from the area.

Meanwhile, spokesman of the Paphos branch of STEK, the union for tourist sector workers, Demitris Smirlis, has also spoken of his grave concern over the drop in visitor numbers to the island.

Smirlis said he believes the image presented by the airports of Larnaca and Paphos is a poor one, being unappealing and disorganised. He told local station, Radio Pafos, that he regards this as one of the main contributing factors to the steep decrease in tourist arrivals to the island.

Smirlis went on to say that in numerous instances, passengers at both airports have an average wait of an hour before collecting their luggage, a timeframe, he said is unacceptable. The result of this, he claimed, is the arrival of unhappy, disappointed visitors.

He continued, “Reservations made by foreign visitors for the season of August are very low. Although as I understand it, beds will be booked by local tourists in August, as this is the main holiday month in Cyprus.”

Smirlis cited other reasons for the decrease in numbers, such as price hikes, the global rise in the cost of living and less consumers being able to afford foreign travel for their holidays.

Finally, he stressed the importance of Cyprus’ image on the global stage and competitive pricing within the industry, in an attempt to encourage travellers to return to the island.

Cyprus Mail

[Feisty]

Apart from what you stated, Cyprus property prices were driven up because of investment. I know a large amount of people in the UK who bought property in Cyprus purely to make money, many of whom invested in Golf Resorts. Cyprus is no longer going to be the hot spot, there are new places like Bulgaria and Romania that are up and coming, not to mention Poland. In my opinion Cyprus has topped up in property prices, not to say that they will fall, but they will certainly not go any more ludicrous in cost. Anybody that says otherwise has no experience in the property market.

Some Cyprus properties are built well, but many do a half approach in building. I for one have learned many things, I already know which companies will survive the slump and which will struggle, if not go completely bust. It's all down to the quality of housing produced. Developers that were in it for the money, rather than quality houses will no doubt struggle as there will be more choice available. Since many will not be buying house prices will naturally be reduced. This assumption is made since most developers do not completely use their own funds but instead rely on clients/customers to take loans on their behalf and pay them in installments.

PS: Land will also fall, since land prices were inflated by developers.

Cyprus has never particularly been a hotspot. I initially bought my properties in 2003 and Bulgaria and Romania were already then moving up the ranks. However, neither are places that one could go to in winter and neither have many of the attractions that Cyprus has to an investor of sorts. People invest for many different reasons and the ones who lose money are usually the amateurs who cannot read the market correctly. A good property investor is always looking at least 2 years into the future. It was easy to see that the property market in the UK was going to fall at least 2 years ago while it was still rising.

[purdey]

Bulgaria is great in winter. Ski resorts with modern facilities, new property just off piste has all but sold. New flights are also planned this coming winter, due to demand.

[Feisty]

Bulgaria is great in winter. Ski resorts with modern facilities, new property just off piste has all but sold. New flights are also planned this coming winter, due to demand.

Not disputed in any way shape or form but as I said previously, people have many different reasons for buying property. For instance, it would be a very small percentage of buyers abroad who would be buying for retirement purposes.

[lilminx]

Well the Brits arent buying.. 3 grey concrete shells on my estate have been bought by Iranians..

[Sega]

Apart from what you stated, Cyprus property prices were driven up because of investment. I know a large amount of people in the UK who bought property in Cyprus purely to make money, many of whom invested in Golf Resorts. Cyprus is no longer going to be the hot spot, there are new places like Bulgaria and Romania that are up and coming, not to mention Poland. In my opinion Cyprus has topped up in property prices, not to say that they will fall, but they will certainly not go any more ludicrous in cost. Anybody that says otherwise has no experience in the property market.

Some Cyprus properties are built well, but many do a half approach in building. I for one have learned many things, I already know which companies will survive the slump and which will struggle, if not go completely bust. It's all down to the quality of housing produced. Developers that were in it for the money, rather than quality houses will no doubt struggle as there will be more choice available. Since many will not be buying house prices will naturally be reduced. This assumption is made since most developers do not completely use their own funds but instead rely on clients/customers to take loans on their behalf and pay them in installments.

PS: Land will also fall, since land prices were inflated by developers.

Cyprus has never particularly been a hotspot. I initially bought my properties in 2003 and Bulgaria and Romania were already then moving up the ranks. However, neither are places that one could go to in winter and neither have many of the attractions that Cyprus has to an investor of sorts. People invest for many different reasons and the ones who lose money are usually the amateurs who cannot read the market correctly. A good property investor is always looking at least 2 years into the future. It was easy to see that the property market in the UK was going to fall at least 2 years ago while it was still rising.

Agreed. Property in the UK has not actually falled, but when people pay less for it, it means that it falled. Do you see this happening 2 years time in Cyprus?

Emm... Cyprus has been a hot spot for the past 2 years in the UK when concerning property. In normally goes Spain .... Cyprus ..... Turkey or Greece ..... and then come the less developed countries like Romania, Bulgraria Poland. Many however were purchasing in Cyprus for investment for for a holiday home. I know many that rent their house to friends and relatives per week and use it themselves when they come over, which makes Cyprus ideal for this.

[purdey]

But when you see them coming up on Ebay, you know something is not quiet right. The market is flooded at the moment, too many rentals and not enough clients, IMO.

[Sega]

But when you see them coming up on Ebay, you know something is not quiet right. The market is flooded at the moment, too many rentals and not enough clients, IMO.

The trouble is that many people built 30+ apartments in one block in the middle on nowhere. Sure, eventually that will be a populated area, but since you only have sheep populating the area, you will be hard pushed to find a tenant. In my opinion Cyprus is already flooded, prices are too expensive for what they are, and many developers don't have a clue.