Mr Loizou, lead consultant with niche real estate market research company Leaf Research, spoke of the economic factors and other issues that had resulted in dramatic downturn in sales that started in 2008.
“A fall in the Island’s GDP and rising unemployment means that the ‘good days’ have gone” said Mr Loizou, adding that “we are probably approaching the worst point, but things are unlikely to get back to where they were.”
Since January 2010, loans for housing have increased by 17% (€1.818 billion) and have rocketed by a staggering 197% since 2006. “The high cost of servicing these loans combined with increasing interest rates is putting a greater financial burden on households” said Mr Loizou.
The reduction in domestic sales started in 2004 as salaries failed to increase in line with the rising cost of housing. Although wages kept pace with construction costs, land prices rocketed by 576% between 1998 and 2008, pricing many local buyers out of the market.
Source: Cyprus Property NewsGoogle+