Interest rate increases, inflation and other factors have pushed demand from the domestic and foreign markets down resulting in severe problems across the island.
Chairman of the Pancyprian Association of Real Estate Agents, Solon Kourouklides, is reported as saying that in Paphos: “Sales have dropped significantly and the number of unsold properties has increased drastically. In the past three months, the external market has dropped by 30-40% while the internal market has dropped by 5%. Forecasters say that the situation will continue until the end of the year - early 2009“.
The slump not only affects the number of properties being sold, but their prices too. “Comparatively, Paphos had the highest prices. Today property prices are showing a dramatic decrease of up to 30% or even 50% for flats“, Mr. Kourouklides noted.
