Now is the best time to buy Cyprus real estate!

Nov 12, 2021 | Cyprus Economy

If we accept this approach as correct for any time period, the period we are now going through, especially for Cyprus, is even more than suitable for the purchase of real estate. The reasons for this are a combination of macroeconomic, medical and political data, which form an unprecedentedly favorable situation for the housing market.

Market prices remain low

Market costs remain low, property prices in Cyprus have dropped more than 5 per cent in the past year, according to data from the European Statistical Authority, when property costs in other European cities were rising by more than 17 per cent.

ECB is keeping interest rates low

Secondly, the policy of the European Central Bank favours credit expansion as a way to restart the economy, in practice, this translates into a zero interest rate, so the only interest rate a borrower will pay today is that of the commercial bank with which he will work. Even in this light, however, Cypriots are probably among the ‘favoured’ in the European south, since the average mortgage rate is about 2 per cent while in Greece it reaches 2.9 per cent and in Malta it exceeds 3 per cent.

Growth of savings

The explanation is basic and has to do with the expenses borne by the actual banks to keep up with the overabundance of liquidity they show. All things considered, skillet European, as in Cyprus, the lockdown time frame supported the increment of family reserve funds, and consequently of stores. These reserve funds can be the fuel for the advancement of the following time frame, and yet they can likewise be the apparatus for advancing the monetary situation of similar individuals, in case they are appropriately contributed. What’s more, as the writer of the book above and this essayist notes, getting land is as yet perhaps the best venture.

State subsidy

With this in mind, the state subsidizes the interest rate on first home mortgages by up to 1.5 per cent for four years. All of these factors add up to the conclusion that anyone who intends to buy a property in the future should do so now. Realistically, it is impossible to imagine that a more favorable configuration of factors could come together at one time than what we are now seeing: Prices are low, interest rates are  approaching  zero and the state is subsidizing most of the final interest rate payments that the borrower will pay.

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