January 2015 showed an increase of 10% compared to the same month last year.

It is widely expected that transactions in 2015 will mark an increase of 10-20% in comparison with 2014.

Based on market records of previous years, normal transactions for Cyprus reach about 10,000 per year. With that in mind, it is expected that transactions in 2015 will be in the region of 50% to 60% of normal years.

Prices have followed a downward trend since mid-2008. There was a slight break in 2010 but it was followed by a sharp decline.

Based on the RICS Real Estate Price Index, the price decline during the last three months of 2014 was only about 1% – a slowdown in decreases. All signs point to a stability trend in the real estate sector.

Projections for the field can only be positive if one is to take into account the following:

– Banking sector stability allows for new funding in real estate after three years of almost zero lending.

– The recently announced drop in interest rates by 1% will help businesses and individuals better manage their loans and will be helpful to those seeking new loans.

On the minus side, one can refer to the increased taxation in real estate since 2012.

Source: InCyprus