According to the seventh issue of the RICS (Cyprus) Property Price Index, average residential prices for houses and apartments fell by 1.0% and 2.7% respectively. Average rental values for apartments fell by 3.1%, retail units by 4.1%, warehouses by 5.4%, and offices by 2.0%. In contrast, rents for houses rose by 1.3%. Figures from the Land Registries across Cyprus reveal that the number of properties sold fell for the 16th consecutive month in October; the rate of the fall appears to be slowing. The area hit hardest by the decline is Larnaca, where sales slumped 27%. In Paphos they are down 22% and in Famagusta they have fallen 15%. Limassol seems to be weathering the crisis well with sales falling by just 0.2% over the year which has been attributed to an influx of Russian buyers.

Property experts believe the country’s favorable lifestyle and climate will continue to prove tempting to emigrating Brits. A large number of potential homeowners in the country are hoping to take advantage of the low prices which are currently on offer, as a result of the market crash.

Property valuer Polys Kourousides believes that the things will change in the next few months. He said that Limassol recorded an increase in August due to the purchase of properties by non-Cypriots, Russians mostly. Parliament’s approval of the draft law on the suspension/reduction in Property Transfer Fees will make a positive contribution to the market and it was actually one of the proposals made by the Valuers’ Association three years ago.

Meanwhile, The Vice Chairman and spokesman for the Real Estate Agents’ Association, Solomon Kourouklides, said that the biggest problem is the lack of liquidity and that the measures cannot change the market by themselves; further incentives are needed.

Pavlos Loizou, the lead consultant of Leaf research said that the new properties were built for “buy-to-flip” investors and is unsuitable for permanent living. The period of frenzied investment speculation has come to an end; these properties are unlikely to be sold in the near future. As the banks have tightened their borrowing criteria and are withholding finance for almost all projects, very little construction activity is taking place. On a positive note, he said that there is a demand for city centre apartments, some holiday homes, student housing and projects related to renewable energy.

There is little demand for long term investment and Prices in secondary areas as well as the price of land are likely to reduce further. However, Prices and rents across Cyprus’ major urban areas continued to fall during the second quarter of 2011.

According to the seventh issue of the RICS (Cyprus) Property Price Index, the first quarter saw some signs of price stabilization and muted economic growth, the second quarter saw foreign investors took a “wait and see” approach which led to a low transaction turnover and to reduced interest by local buyers. The average residential prices for houses and apartments fell by 1.0% and 2.7% respectively during the second quarter of the year.

Larnaca experience the biggest drop where house prices fell by 3.2% and apartment prices by 7.2%. Average values of retail properties fell by 4.4%, whilst those of offices and warehouses fell by 2.2% and 1.7% respectively. Over the quarter, average rental values for houses rose by 1.3%, apartments fell by 3.1%, retail units by 4.1%, warehouses by 5.4%, and offices by 2.0%.

TheMoveChannel.com is the important independent website for international property in over 100 countries with more than 400,000 listings around the world. Spain was the most popular investment destination for British overseas property investors. France is in second place and the USA bagged number three spot. These were followed by Portugal and Italy, in fourth and fifth places respectively.

‘A Place in the sun’ has reported that the number of foreign buyers active in the Cypriot housing market last year increased compared to 2009. Altogether, 2,030 homes were bought by foreign buyers during 2010, up 15 per cent compared to the previous year. However, the volume of properties in Cyprus sold to overseas buyers at the height of the market in 2007 was 11,281.

Nicosia has seen the greatest improvement in property sales with a 46 per cent increase which was followed by Famagusta, where sales increased 16.5 per cent, Paphos, up 16.3 per cent and Limassol with 12 per cent.

Maria McLaren, spokesperson for the Pafilia Property Commented: “Cyprus attracts everybody from the holiday home crowd to the retirees because it has the infrastructure.”

She added that it is geared up for anybody who wants to go to Cyprus and live there very happily. The developers have dropped their property prices by between ten and 20 per cent on the island due to oversupply.

According to Shelter Offshore, Personality could determine a person’s happiness in their chosen overseas property relocation, claims one website for those looking to move abroad. Those seeking a quiet life full of peace could find themselves happiest in France. Alternatively a calm but adventurous spirit could love living in Turkey.

The website stated that if property investors are not impressed by both Turkey’s call of adventure or France’s laid-back attitude appeal, then Cyprus offer the best for a more young at heart personality. The property portal claims Cyprus is perfect for those looking for an active social life and some fun while enjoying a great climate.

According to propertywire.com, most people think of Cyprus as a Mediterranean hotspot. However, the island can also boast skiing for four months of the year between late December and early April and is home to the annual Federation Internationale de Ski giant slalom, along with other competitions. The slopes are located around the village of Troodos, which has hotels, restaurants and facilities for skiers of all levels. For holidaymakers caught between skiing versus sunbathing, the country offers an opportunity to experience the best of both worlds.

Martin Pearce, sales director at Aristo Developers, said that Cyprus has a very strong reputation as a favorite choice with those seeking a second home or holiday property as it is quite simply because use and enjoyment of such a property is not limited to a brief summer season period.

According to the Cyprus Central Bank in its six-monthly bulletin reports, prices had decreased by 8% during 2009, although they predicted that they will remain stable throughout 2010. A spokesman for the Central Bank said that the “drop in housing property prices coincides with the weakening of construction activity in 2009.” The most recent Land Registry figures stated that the total sales for 2009 amounted to just over 8,000, compared with around 14,500 in 2008. Property experts agree that the market has been severely affected by a sharp drop in demand from foreign buyers.

However, the good news is although in 2009 saw an unprecedented drop in first-time enquiries, those who had delayed visits to look at property were starting to visit again this year, although in far smaller numbers than before the downturn. It seems that those who are keen to buy in Cyprus are sticking with it during the tough times.

Prospective buyers may be interested to know that, despite the economic recession, the Cypriot government is still investing in infrastructure. Property investment in Cyprus is of course depends on buyers circumstances, their lifestyle and what they want from their property in Cyprus. Buyers are naturally benefiting from the downturn as sellers offer significant reductions, particularly to cash buyers.

Paul Owens, Chief executive of the Association of International Property Professionals commented: “You need to do your homework, do your research and make sure you take independent legal advice to make sure you are buying what you think you are buying.”

The Mediterranean island destination is unique for property investment as it is with thousands of years of history, a perfect year round climate, stunning natural beauty and yet it has remained untouched by mass development and mass tourism because the island of Cyprus is divided and until recently Northern Cyprus was effectively unreachable. Theprices have risen by up to 50% but still they remain up to two thirds cheaper than prices in southern Cyprus. Investors are aware that this disparity will not remain forever and that now they are buying into great potential for substantial property price growth.

The more good news is Northern Cyprus has a plethora of spectacular castles, natural harbors and a view of the Turkish coast on the horizon. Rental investors and developers are entering the market in large numbers for letting to tourists and for sale to expatriates, retirees and those looking for a holiday home in the sun.

Panayiotis Michaelides, the firm’s marketing manager said that Aristo has seen growing interest from the Scandinavian market over the last four months, He said that Norway’s economy has been particularly resilient during the financial crisis with a relatively shallow recession and moderate increase in unemployment. Aristo has been selling to Scandinavian buyers for the last eight years, and has had an affiliate office in Stocholm for four years.

He commented: “Our exclusive partner, Agnar D. Carlsen, managing director of Norsk Megling, strongly believes the same as we do – Aristo and Norsk Megling joining forces can achieve quite good results under the given circumstances. We are now about to launch some new signature projects and we need to empower our position on these markets, Norway and Sweden being the two countries we believe have great potential for further growth.”
Aristo developers have begun a new marketing strategy separating its existing stock from its new luxury projects. Panorama Residences in Pissouri was launched in an attempt to attract buyers from the high-end of the market . Aristo is also awaiting government approval on ‘Venus rock’ project as it will be the biggest the island has ever seen. it is intended to be a €1 billion project covering around 10 million sq.m. of land.

The two developments are to be marketed separately from the company’s other products, which are aimed at mid to low-end buyers and now referred to as ‘Aristo Classic’.

According to the latest Wealth Report compiled by Knight Frank and Citi Private Bank, many wealthy individuals regard property to be one of the best assets to have. A total of 71 per cent of those questioned claimed that 2010 would be a good time to make a property purchase, with its “tangible and straightforward” nature making it a good investment during tough economic times.

After a turbulent 2009 for the Cypriot housing market, news that property sales are beginning to pick up is likely to be welcomed by investors. Many overseas investors are looking for long-term returns and they are buying cheap and distressed properties in the country and waiting for improvements to materialize.

Many overseas investors are buying up distressed property from individuals who are struggling with loan payments. Solomon Kourouklides, president of the Cypriot real estate agents association said that the growth was probably a result of more opportunities opening up for buyers in the marketplace.

According to the figures released by the Department of Land and Surveys organisation, real estate sales were up 11 per cent during April, compared to 2009, and up 25 per cent in the first quarter of this year in comparison to last. Besides, the figures reveal that demand for foreign property was also beginning to re-appear, after a number of investors fled the market during the country’s economic troubles.

According to reports, the Cypriot government and Qatari Diar Real Estate Investment Company agreed to set up a joint venture for the development of a leisure complex, with the initial investment exceeding 150 million dollars targeting rising numbers of visitors to the east Mediterranean island. The agreements and memoranda were signed at the Presidential Palace in Nicosia during official talks between delegations of Cyprus and Qatar, headed by President Demetris Christofias and the Emir of Qatar Sheikh Hamad Bin Khalifa Al Thani.

Officials said that the first phase will include a five star hotel, while the second phase will encompass apartments and offices. The area allocated for the complex is close to the commercial hub of the capital and is expected to cover 50,000 square meters.

Finance Minister Charilaos Stavrakis said that they aim to finish the hotel construction in 30 months and added that the Cypriot government would make sure that the project is completed within the set timeframe.

Replying to questions as to Cyprus’ fiscal deficit and public debt, he said that Cyprus is in a better state as the average numbers in the Eurozone. The Minister said that the project would create jobs and bring state income through VAT.

According to the Cyprus Mail, Real estate and property consultant Antonis Loizou said that the development will bring with it a number of benefits for the country.

“The first and main one is that it is an expression of confidence to the Cypriot economy, which is good. At this point interest from Arabic countries to buy properties in Cyprus is very limited. This will open doors in oil-rich countries,” Mr. Loizou told the news provider.

In the fourth quarter of 2009, Cyprus GDP shrunk on a seasonally adjusted by just 0.3% compared to the previous quarter and by 2.7% compared to the corresponding quarter of 2008. Only 1,800 Cyprus properties were sold to non-Cypriots in 2009. This compares to over 11,000 in 2007. According to the latest figures from the Cyprus Land Registry, 158 contracts of sale were deposited by non-Cypriots at the Land Registries throughout Cyprus in November, compared to 117 in October. Cyprus is one of very few countries to produce official data on the number of homes sold to foreigners, so a comparison with other similar markets is difficult.

While Cyprus may well have seen the fewest foreign sales in 2009, it could well see the same level of rebound as seen elsewhere as 2010 progresses. At this time of year when sales traditionally slide off, the increase in sales in November signifies that the Cyprus property market will recover quickly as the international economic recovery gathers pace. At the first signs of recovery, and demand growing for overseas property, demand has begun to increase for Cyprus property. The title deeds crisis has also been a massive barrier to sales, but there is hope that this is now resolved by new government legislation.

Les Calvert director of overseas property portal Property Abroad.com said that Cyprus’ new golf courses and proposed 2nd Eurodisney as reasons to believe that Cyprus property has a bright future.