The Cypriot government has been urged to take action over the issuing of title deeds which would help to revive the property market. While the Cypriot banks are financially sound the property market in the country represents more than 40% of the loan collateral, and there is concern that the island is not competitive enough when compared with other European countries who have already lowered their interest rates and property taxes to encourage foreign investors.
Property in Cyprus underwent a ten-year boom period until 2008 but has since suffered a decline which can be attributed to a number of different reasons; these include the fact that many overseas buyers were British, and the decline in value of sterling against the Euro has made investments more expensive, and buyers in general are being much more cautious about their purchases. The property laws in Cyprus are not as transparent as they need to be even if the government is now trying to rectify that situation, and Cyprus are currently has about the highest interest rate in Europe.
Property prices in Paphos have dropped by up to 30% of the last three years; although there are signs that the market is recovering property sales are still well below those achieved during the boom. There are some important property developments taking place in Cyprus which include luxury villas and residential properties, golf courses and marinas. While some of these projects are expected to be completed very shortly, others will not be available for another couple of years but can be expected to greatly boost the appeal of the island, especially as a new seaport is planned that will cater for the large cruise ships that cannot currently dock using the present facilities.
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