Those involved in the Cypriot housing market feel that the government needs to take action to revive this sector. This would include eliminating delays over the issuing of title deeds and avoiding any increase to local property taxes. There has been criticism in the past about property laws not being transparent enough, although the government is already taking steps to rectify this.
While the banking sector is believed to be sound it needs to become more competitive to encourage overseas investors, as mortgage interest rates are currently amongst the highest in Europe. Combining this factor with increased property taxes could have a negative impact on the property market at a time when other governments are trying to attract foreign investors.
Before the downturn more than half of the foreign buyers were British, but the devaluation of sterling against the euro has made purchases more expensive and those who are still buying are being much more cautious, but the market has started to show signs of recovery with sales in Nicosia and Limassol increasing. There are also several new developments which represent significant investment into already popular resorts, and which should make these resorts even more attractive to tourists. These make the current low prices of existing homes in these areas worth considering.
These include Venus Rock in Paphos, which will be Europe's largest residential beachfront development. Once this development is completed it will have two 18-hole golf courses designed by Tony Jacklin and more than 3000 new homes, as well as sports facilities and a marina. Building costs are estimated at over €1 billion. Another new development is the Alakati Village in Nicosia which will provide 455 new homes with construction costs of around €500 million.