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Panos Danos: The Cyprus Real Estate Market

Panos Danos: The Cyprus Real Estate Market

DANOS Chartered Surveyors said Banks in Cyprus had no choice but to increase interest levels to tackle soaring inflation, currently running at ~ 9 per cent.

The latest increase interest levels will have a knock-on effect on savers and anyone who wants to borrow money, as well as impacting mortgage costs.

What is happening to house prices?

House Prices are expected to cool down because there is less demand in the market. Fewer people want to buy a house.

This is for two reasons. First, previous hikes to interest levels have resulted in higher mortgage rates.

This simply means that it is now more expensive to take out a mortgage than it was earlier in the year - even if the mortgage amount is the same.

Secondly, people generally have less money in their pockets because of soaring inflation - or rising prices.

Food, energy and fuel have become more expensive, meaning people have less disposable income.

According to DANOS, the average house price in Cyprus is expected to fall for the first time in two years in 2023.

Should I sell my home?

People who already have their homes on the market will be keen to sell them as soon as possible.

DANOS expects interest rates and inflation are yet to peak and that Cyprus, with the rest of Europe, is heading into a recession.

All of these factors mean that house prices are likely to fall. According to DANOS, house prices may drop about 10 per cent next year.

If you are not in a rush to sell your house then you should probably wait until the economic storm clouds have passed, DANOS say.

What if I’m a first-time buyer?

First-time buyers are stuck in a difficult scenario. House prices are becoming cheaper but interest rates remain high, meaning those looking for their first home will be able to afford less when getting a mortgage.

Is now a good time to buy?

If you are among the proportion of the public who doesn’t need to take out a mortgage, then now is a good time to buy because prices are dropping. Funds are advertising already real estate at reduced prices.

It would be a good idea to wait until next year when prices are expected to hit their lowest ebb.

Investors will start looking for higher returns to offset the cost of interest rates and inflation. These in turn will squeeze the profit of developers. Real Estate, though, will remain to the radar of Investors. In any case, always buy or sell after taking an advice from an established real estate agent.

Panos Danos is Managing Director of DANOS International Property Consultants & Valuers

DANOS Chartered Surveyors said Banks in Cyprus had no choice but to increase interest levels to tackle soaring inflation, currently running at ~ 9 per cent.

The latest increase interest levels will have a knock-on effect on savers and anyone who wants to borrow money, as well as impacting mortgage costs.

What is happening to house prices?

House Prices are expected to cool down because there is less demand in the market. Fewer people want to buy a house.

This is for two reasons. First, previous hikes to interest levels have resulted in higher mortgage rates.

This simply means that it is now more expensive to take out a mortgage than it was earlier in the year - even if the mortgage amount is the same.

Secondly, people generally have less money in their pockets because of soaring inflation - or rising prices.

Food, energy and fuel have become more expensive, meaning people have less disposable income.

According to DANOS, the average house price in Cyprus is expected to fall for the first time in two years in 2023.

Should I sell my home?

People who already have their homes on the market will be keen to sell them as soon as possible.

DANOS expects interest rates and inflation are yet to peak and that Cyprus, with the rest of Europe, is heading into a recession.

All of these factors mean that house prices are likely to fall. According to DANOS, house prices may drop about 10 per cent next year.

If you are not in a rush to sell your house then you should probably wait until the economic storm clouds have passed, DANOS say.

What if I’m a first-time buyer?

First-time buyers are stuck in a difficult scenario. House prices are becoming cheaper but interest rates remain high, meaning those looking for their first home will be able to afford less when getting a mortgage.

Is now a good time to buy?

If you are among the proportion of the public who doesn’t need to take out a mortgage, then now is a good time to buy because prices are dropping. Funds are advertising already real estate at reduced prices.

It would be a good idea to wait until next year when prices are expected to hit their lowest ebb.

Investors will start looking for higher returns to offset the cost of interest rates and inflation. These in turn will squeeze the profit of developers. Real Estate, though, will remain to the radar of Investors. In any case, always buy or sell after taking an advice from an established real estate agent.

Panos Danos is Managing Director of DANOS International Property Consultants & Valuers

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