The Cyprus Property Boom is Over

FALLING OFF THE HORSE

The Cyprus property boom is over. Whatever the internet investment websites and realtors claim, the Cypriot property market has irreversibly collapsed. The worldwide economic crisis has completely deflated the speculative bubble, and many property owners are desperately trying to sell properties on an already flooded market. Sadly, they face a long wait or must sell at an obscenely low cost, losing around 30%.

The turmoil in the British economy has completely finished off the Cyprus property boom. The weak pound means that the British are not buying and are, in fact, desperately trying to liquidate their assets and export the money back to the UK. In addition, the collapsing UK housing market has ensured that the days of second mortgages for holiday homes are a distant memory. With no British buyers, there is no market. Whilst many Cypriots, especially the construction industry, made money from the boom, backing a single horse is unwise if it falls at the final hurdle. Constructors are laying off workers on an unprecedented scale, and the whole sector is suffering an enforced streamlining process.

Banks, constructors, realtors and the government all shared the blinkered belief that the property values for foreign buyers would continue to rise, unabated. They made no attempt to prepare for the inevitable, and the whole economy is now suffering. Just as with British and American companies, they lauded the free-market when times were good, but now demand governmental interference when they begin to suffer. Deal with it, Guys – you backed the wrong horse and you lost. Just as in the rest of the world, prices will sink to a more realistic ‘bricks-and-mortar’ level.

Of course, when there are losers, there are also winners. Whilst the days of making a quick buck have gone forever, for those wanting to buy a beautiful holiday home, now is the time to buy from a strong bargaining position. Developers are desperate to sell, you can knock at least 30% off the asking price. If you drive a hard bargain, and offer a quick deal and quick turnaround, they will fall over themselves to sell.

The Cyprus property boom is over, dead, kaput, finito, ciao, auf wiedersein, goodbye……..