If we compare the number of issued building permits with the number of contracts of sale in Cyprus, it can be concluded that about 50 000 of properties in Cyprus are idle without owners. If the oversupply in the market to take as the difference between signing the contract and actually issued title documents, the country has 18 000 units of unsold housing. According to other researches the number of unsold objects increases to 28,000.
Whichever way the calculation was used,is not obvious that it would take years of active sales to eliminate the existing surplus.
Everything is complicated by the fact that due to the mortgage crisis more than 33% of all housing (about 40,000 objects), built over the past 15 years, are still owned by the old owners. Although buyers pay to the developers a large part of the cost or even the full cost, by law apartment or house is still owned by the seller, as the papers establishing the right of ownership, were not been altered.
The market of real estate in Cyprus is dependent on foreign investors. They receive a solid tax incentives, as well as the quick citizenship in the European Union. But the current situation can have a negative impact on the attractiveness of the market for buyers from abroad.
Based on materials of news.cyprus-property-buyers.com
Photocredit Depositphotos.com