Has the Time Come to Purchase Property in Cyprus?

Has the time now come to buy property in Cyprus again? This is the question that all potential buyers and investors are currently asking.As mentioned repeatedly over the last few months by the Cyprus Association for the Promotion of Property Development, house and apartment prices in both Nicosia and Limassol have remained steady, and as it is unlikely that the prices will fall further in the coming months, for anyone considering buying a property, now is as good a time as any.Some of the main reasons for the market stabilizing over the past months are:
According to both official statistics and opinions of various developers and agents, the frequency of property sales has increased steadily over the past few months. For example the amount of property transactions completed in October 2009 was down just 29% in comparison to October 2008.
Local banks have a much improved cash flow now thanks to a new government scheme offering the banks new liquidity via bonds. This in turn enables the banks to offer competitive housing loans with low interest rates and gives potential purchasers the opportunity to buy.
The larger European economies, the US economy and the Japanese economy are all gradually recovering as are both their psychology and investment sentiment which without doubt will give a boost to the holiday home market in Cyprus. Also officially on the way up is the English market, a key market for Cyprus.
More tourists are expected to be visiting the island in the coming months thanks to the new 60 million Euro injection by the government to the Cyprus tourist industry. This should in turn restrict growth in unemployment figures to an extent as they have been steadily rising over the past few months in Cyprus.
From the above points, it is possible to draw several conclusions.Those with intent to purchase a property should proceed. At present there is a huge selection of finer properties to choose from as well as prices at their lowest level.There may even be a slight increase in prices over the coming months as stock may be limited. It is also quite possible that available units will be limited in quantity as building permits for new developments have decreased.City centre commercial property has deviated slightly in relation to market trends and has actually displayed upward movement during this economic crunch.Although impossible to predict exactly what will happen with the Cyprus real estate market over the next few months, it is possible to now see clearly that the last six months showing encouraging movements in the right direction. We can now assume that this upward trend over the last period should provide positive consequences.