Real value of Cyprus property?

[xavier]

Simple question yet very difficult to answer. It could be argued it is all a matter of perspective and let the premise ‘if someone is prepared to pay the price’ than that’s the assigned ‘value’.
You can buy equally adequate pair of jeans for 20 quid yet many are happy to pay 200+++
I believe no one should tell you how to spend your money. After all, it is yours to spend how, where and on what you like. Getting back to property though, buying property in Cyprus comes with a ‘twist’. On one hand reported statistics show that the property prices (and hence ‘values’) have been steadily rising up to 20% per year, year on year and if you are of the ‘old’ school, you would be more inclined to believe that source than any other.
In Cyprus, buying property comes with a ’twist’ . Firstly, re-sale properties are not factored into the figures and secondly, the developer listing prices are only taken into account. Given that most agents sell for developers and most of them would work on a huge 8-15% commissions it is not so much the ‘value’ that is reflected in the statistics but a market distortion on a massive scale.
Cyprus property market Simple truths
1. Have not soared up 20% per year (some people may want you to believe it though)
2. Re-sale properties are much cheaper
3. The rental returns have been inflated to sell the ‘overpriced’ property in the first instance
4. There are many sellers out there who have been caught out and can’t even get back their initial investment (and that goes for buying from ‘reputable’ leading developers)
5. Don’t despair - You are lucky! If you are thinking about venturing into buying Cyprus property your first stop is Fitzgerald’s. Buying property is an exciting time in your life and we are here to help.
A tremendous insight into local practices is aptly illustrated on leading Cyprus forum, Cyprus Living http://www.cyprusliving.org/phpbb/nfphpbb/
A good eye opener is Nigel Howarth’s section dealing with all things related to property & property buying.
xavier