# Cyprus property overpriced?



## kempo23 (Apr 27, 2012)

Whilst those involved in property sales and indeed those that currently own property in Cyprus will like to think advertised prices are realistic, are they really? 

Some of the key factors which are / will impact upon property prices include:

- Greece situation will have a massive effect on the Cyprus banks and therefore the Cypriot economy

- Cyprus banks have no money to lend

- Foreign investment (buyers) is key, but they too are feeling the effects of the recession

- Confidence in the Cyprus property market is very low (quality, fraud, etc)

- Huge amounts of unfinished and empty properties due to bankruptcy, are sitting on the banks spreadsheets waiting to be offloaded

Whilst I am no economist, there are plenty of experts stating that property is overpriced and needs to fall substantially. So why are we not seeing this reflected in the estate agents advertising? Maybe they have given up too?

Your thoughts?


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## Veronica (Apr 5, 2008)

Unfortunately agents do not decide the prices of properties. We can only advise and then advertise at the price the vendors want. 
Many properties have already fallen in price substantially but I agree that there are still many overprices properties on the market. However we have found that although owners are reluctant to drop their prices when advertising they can often be persuaded to accept substantially lowers offers than the advertised price.
We try to reason with owners if they get an offer to get them to see that if they hang on for the higher price they may still be on the market in 2 or 3 years during which time they could have had the money invested and made up for the lower price.
Many British owners still cannot come to terms with the fact that you cannot make big profits on properties in these times like you could in the past.


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## kempo23 (Apr 27, 2012)

Thanks for your honest view Veronica. I guess the first thing to do is find properties which satisfy my requirements, almost ignoring the advertised price, then make offers. Afterall, the worst that can happen is to get a rejection.


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## Veronica (Apr 5, 2008)

kempo23 said:


> Thanks for your honest view Veronica. I guess the first thing to do is find properties which satisfy my requirements, almost ignoring the advertised price, then make offers. Afterall, the worst that can happen is to get a rejection.


This is exactly what I would advise. We tend to show clients properties within their budget and also some over their budget which we feel the owners might take offers on. Most properties we have sold over the past two years have gone for quite a bit less than the asking price.


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## ade (Dec 21, 2007)

Veronica said:


> Unfortunately agents do not decide the prices of properties. We can only advise and then advertise at the price the vendors want.
> Many properties have already fallen in price substantially but I agree that there are still many overprices properties on the market. However we have found that although owners are reluctant to drop their prices when advertising they can often be persuaded to accept substantially lowers offers than the advertised price.
> We try to reason with owners if they get an offer to get them to see that if they hang on for the higher price they may still be on the market in 2 or 3 years during which time they could have had the money invested and made up for the lower price.
> Many British owners still cannot come to terms with the fact that you cannot make big profits on properties in these times like you could in the past.


Hi Veronica

Would you say the same goes for rental roperty


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## Veronica (Apr 5, 2008)

ade said:


> Hi Veronica
> 
> Would you say the same goes for rental roperty


To some extent yes, although rental prices are much lower than they were.


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## kempo23 (Apr 27, 2012)

Veronica said:


> To some extent yes, although rental prices are much lower than they were.


Veronica, what is the average rental charge per week in high season for a 3 bed villa with pool?


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## Veronica (Apr 5, 2008)

kempo23 said:


> Veronica, what is the average rental charge per week in high season for a 3 bed villa with pool?


i can't help you there I am afraid. I don't have any dealings with holiday lets so have no idea of prices for them.
If you look at ownersdirect.com. (something like that) you should find plenty on there which will give you an idea of prices.


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