While other markets faltered and failed during 2007, the housing market in Cyprus climbed, and did so nearly all year. They ended the year with a large 19 per cent climb in house prices. This information helps to reaffirm that Cyprus is a solid investment to those looking to buy.
Residential housing prices here climbed throughout 2007. This comes from the latest report released in the BuySell Home Price Index. The increase, at 19.2 per cent through the year was in stark contrast to the 6.6 per cent house price increase for year 2006.
The average home price in Cyprus for 2007 was €158,117, with the BuySell Price Index reporting 139.06 units for the entire year.
While this is good news, and definitely a bright spot for many overseas investors, the final month of the year did not bode well. In December, house prices in Cyprus ended down. They dropped by 1.9 per cent in December, over November's pricing.
This type of slip is considered normal, due to the season and traditional slowing of the market during the holiday season here. Unfortunately, although the drop was small, it was larger than previous drops in the month of December. In 2006, December saw a drop of just 0.4 per cent, while 2005 was a drop of 0.8 per cent and 2004 at 1.4 per cent down, over the November of each year.
The good news comes with reports that the housing market in Bulgaria, another European hot spot for investors, recorded the strongest gain of the year. There, housing prices rose more than 30 per cent, contributing to the overall demand for property in these tourism driven areas.
Both markets are expected to do well through 2008, amid all of the drops in property markets around the world. These two hot spots are opportunities for second home buyers, investors and others, due to increased growth potential here, traditionally.
