Investors are looking to take advantage of the huge dip in the Cyprus property market by snapping up a bargain holiday home in the country, an industry expert has claimed.
Latest figures from the Cyprus Central Bank show that house prices on the island fell by 5.9 per cent in the second quarter compared to the same period in 2011 and by 2.2 per cent from the first three months of the year. Apartment values declined by 5.1 per cent year-on-year.
The sharpest fall was noted in the Famagusta region, where house and apartment prices dropped by 4.4 per cent and 3.7 per cent respectively.
In contrast, the Paphos property market showed some resilience as house prices fell by 0.5 per cent and apartment values declined by 0.4 per cent.
The Royal Institution of Chartered Surveyors (RICS) attributed the poor figures to the economic turmoil occurring in nearby Greece.
"The worsening state of Cyprus's economy and the growing political and economic uncertainty across the eurozone led to a pronounced slowdown in mortgage and corporate lending and a further rise in the rate of unemployment," RICS said in a statement.
However, while current homeowners in the country will be disappointed with the findings, Fred Brown of propertyInternational.com claimed that foreign investors will see the market decline as an opportunity to snap up a bargain property in the country.
He told iexpats.com: "We have seen an increase in enquiries for properties in Cyprus, we feel that these are from investors looking to take advantage of the dip.
We will be running a questionnaire in the coming weeks which should give us more of an insight."
Of course, those looking to invest in the country will have to make sure that they adequately cover all of the goods they leave in their holiday home while they are back in Britain. Holiday home contents insurance is therefore an essential purchase for investors to guard against potential damage or theft of items.