A slump in property prices has spread throughout the island of Cyprus, according to a leading estate agent in the country.
The global economic crisis which has hit the UK has played a major part in this, with 80 per cent of the island’s external demand for property coming from the UK.
The country has also seen interest rate increases of 125 base points in the past few months, as well as escalating inflation.
"Sales have dropped significantly and the number of unsold properties has increased drastically. In the past three months, the external market has dropped by 30 to 40 per cent, said Solon Kourouklides, chairman of the Pancyprian Association of Real Estate Agents.
"The future of the property market is gloomy due to the slowdown in the number of sales across Cyprus," he added.
Despite the downturn in the domestic property market, Mr Kourouklides reports that the commercial property on the island is still in big demand.
The currency exchange rate for Cyprus is £1.00 to 1.2405 euros.
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