What’s happening in The Paphos Property Market in 2009?
Paphos has many advantages compared with other cities and areas in Cyprus. The city is smaller and better laid out, the landscape is beautiful and we get more rain in winter.
British people have many clubs here and many ex-pats have established businesses, so it is easy to find friends and British trades-people. Other nationalities also have the same advantages, so it is a very welcoming place to live or for holidays.
Paphos, like anywhere, has properties that are high quality but also others that are not. It is better to buy from reputable developers and agents - looking at their website, comparing prices and asking around will help you make a good decision.
Most prices for resale and developers properties are down and this is for two reasons:
- There is a large over-supply of property in the Paphos area particularly for one and two bedroom apartments.
- The British are still the biggest market for property and the British Pound has lost 25% in the last 16 months.
If the property price is realistic then it may sell at a reasonable price, sometimes at the list price but often at up to 10-15% less. Resale properties are generally much better value for money. They are often more spacious, have the furniture, fixtures and fittings included and of course you can see what you are buying and what surrounds it.
The fact that the British Pound is down means that sellers are taking more back to the UK for the Euros they receive from the sale of their property. Provided the sellers have not originally paid too much for their properties, selling can be a very happy experience.
Unlike the UK, sales of resale properties can be completed quickly - if the agent is on the ball and the lawyers are experienced in conveyancing and are efficient, many sales are concluded in one month and if a loan is necessary then it may take 2 months.
From developers you can buy immediately and they will arrange a loan if required. You will then need to wait for completion of the property. (Try to include in the contract a penalty if the property is not completed in the time scale quoted).
Getting a loan has been a problem recently mainly because most resale properties do not have title deeds. The larger developers are reaching agreements with the major banks in the next few weeks to facilitate loans without bank guarantees from the developers. This will make selling a resale home much easier for most people as a large number of purchasers require loans to buy property.
If the property has title deeds then there is no problem getting a loan provided of course that the borrower fits the criteria.
The lack of title deeds is a long standing problem which has recently attracted a lot of publicity. There are signs that the Land Registry is trying to fix this problem but much more needs to be done.
Written By Daryl Fitzgerald
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