Cyprus real estate market for Russian investors more than 10 years was very attractive in terms of investment and profitability. but since late last year makes this very attractive multiple changed. Prices have stopped growing , sales have plummeted .
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And, despite the fact that the government of Cyprus, and in particular the Minister of Internal Affairs Neoklis Silikiotis argue that nothing bad happens in the market, and if there has been a negative trend, so to blame the media dramatizes situation, the dry language of numbers suggests that the recession really is. Golden days of the real estate market of Cyprus lasted, according to Global Property Guide, nearly three years since the end of 2005. Due to sharply increased Cypriot demand for housing, including the threat of introduction of VAT on the purchase of new real estate prices rose an average of 20% per year. But in November of 2008 The situation has changed dramatically. From this month, prices in the market started moving down. According to a leading real estate agency in Cyprus MAP S. Platis, in March this year the average price fell in real terms 3, 22% over the same period last year and amounted to little more 187 thousand euros. Sale of real estate on the island in the first half 2009 fell to 842 units. During the first 6 months of 2008, this figure stood at 3800 units. Such data are the Department of Registration land holdings. A Cyprus Property Magazine claims that, among other others fell and rental income. And the decline has been felt more in Last August, when the figure was 3, 81% - 4, 7% less than the average for the first 7 months of 2008. What happened reason for the decline in prices? Most analysts agree that the culprit rather, the culprit was the recession of the economy in Britain, whose inhabitants are still the main buyers of housing in Cyprus. Due to the weakening pound sterling against the euro, the British turned their attention markets outside the euro area. But, in addition to decreasing demand from the citizens United Kingdom, Cyprus real estate is no longer in demand and citizens of other countries. All in all, according to Global Finance, the demand from foreigners at the end of 2008 fell by 50%. Its not the most positive impact on the Cyprus property market and provide local banks, mortgage loans. Interest rates on the island of Aphrodite are among the highest in the Eurozone. The average rate on a mortgage in the first quarter of 2009 was 6, and 8%. True In May several banks lowered her - to 6 4%. The maximum amount of the mortgage credit, issued by the Cypriot bank - 70%. A maximum loan term - 30 years. As for the construction of new housing on the island, then the majority of Cypriot developers states that all projects will be initiated in terms of time and freeze or eliminate out of the question. True here is the beginning of the new buildings all speak with caution, which finds its expression and in the figures. So, in April of this year, the number of permits for new construction fell by 24% compared to the same period last year and barely over 1,200 similar documents. With respect to those companies that have already started construction, most of them offer very good discounts and bonuses - they are usually expressed in quality finishing, partial or complete furnishing of apartments and houses sold, as well as equipping household appliances. In addition, often the company to attract customers, pay their expenses for travel and accommodation in the event of a deal to purchase. Still, back to the fun part - the question the price of the Cyprus real estate. Traditionally, the most expensive real estate is Limassol, in the business of living in Cyprus. According to Global Property Guide, the average square meter of housing in this city is 2,500 euros. Apartments here are sold at a price of 120 thousand to 300 thousand euros. For this money you can buy a home in a small low-rise complex. Villas on the beach - on the order of expensive. Second most expensive city in Cyprus is considered to be more calm Paphos. Here the "square" housing will cost an average of 2,100 euros. Capital Properties, oddly enough, is cheaper, since the purchase accommodation in Nicosia are mainly oriented themselves Cypriots, not the tourists. So square meter is worth an average of just over 1700 euros. The most accessible is the region of Larnaca, where the "square" is worth about 1670 euros. Well And finally - on the immediate prospects for the Cyprus property market. Most Experts agree that to fully recover from the effects of global financial crisis, he could only 4 years. It is possible, of course, and before, but this market, as well as the Cyprus economy as a whole, which predict growth at 0, 3% this year, largely depends on the state of the economies of key Partners of the island, especially Great Britain, Greece, Russia. Only when these countries begin to rise, Cyprus will flow new threads wishing live there. At least for the summer.
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