Uncertainties within real estate markets have risen ever since COVID-19 became a part of our everyday lives. In this article, we explain some factual information about the domino effects of the market and whether it is worth investing in properties today. We believe that the resale market has changed but will offer much more from here on.
Below are the reasons we at Smart Assets believe that now is the best time to buy real estate in Cyprus.
Growth of household savings
Statistically, Cypriot households have shown that there was an increase in household savings through a period of numerous lockdowns since March 2020. Therefore, more purchases and deposits for properties were made in the last year or so. The opportunity to save, placed most people in a better financial position for investment.
Market prices remain at a low
The market prices in Cyprus have remained low. More specifically, according to the data from the European Statistical Authority, property prices in Cyprus have fallen more than 5 per cent within the last year. Although this was the case in Cyprus, the property prices in other European cities rose more than 17 per cent, making a property purchase on this island still the correct choice.
ECB interest rates stay low
The other aspect that puts Cyprus as an attractive destination for resale properties is the European Central Bank (ECB) policy and the level of mortgage lending rates. ECB favours credit expansion as a form of kick-starting the economy. Cypriots are still among the “favoured” in the European south as the average mortgage rate is about 2 per cent, while in Greece, it reaches 2.9 per cent and in Malta exceeds 3 per cent.
For first-time buyers, the state subsidises interest rates on mortgages by up to 1.5 per cent for the initial four years.
All the above factors combined conclude that anyone who intends to buy a property should make that move now. Prices are low, interest rates are approaching a zero figure, and the state subsidises most of the interest rates that borrowers will need to pay. If you have the savings to make that move, we advise you to do so today.
Speak to a member of our team today for more detailed information and find out how to help you find your dream home. Give our team a call at 77000111.