Is a Cyprus Property Crash Inevitable?

Firstly the Cyprus Government is on a policy strategy to curb the property market in terms of building capacity and prices.

The Cyprus Informer article on the Looming Crisis in Banking and the Cyprus Government Policy is here http://www.girltalk.pcs-net.com/b2/cyprus-banking-crisis/

The Cyprus Property Action Group is rightly campaigning for major reforms in the property market so that purchasers get their Title Deeds right away rather than several years later or never.  This leaves purchasers vulnerable to losing their homes if the property remains mortgaged by a developer or new mortgages are added by a developer. 

The Cyprus Informer explained what proposals the Land Registry was proposing to make here http://www.girltalk.pcs-net.com/b2/cyprus-property-bubble/ to make the issue of mortgages go away and leave those without Title Deeds safe.

But because without Title Deeds people don’t own their homes they have difficulty in selling and incur costs which they have to pay to the developer in order to get the developer’s permission to sell. 

The absence of Title Deeds prevents these people from even making alterations to their property. If they want to fit a new front door they cannot. If they want to paint their house a different colour, they cannot. If they want to put a fence up around the property, they cannot. Without the title deeds theycannot even secure a bank loan on their own property.

Channel 4 has widely publicised the The Cyprus Title Deed Problem in its investigative programme “Selling Houses Abroad” which can be found at http://www.girltalk.pcs-net.com/b2/channel-selling-houses/ This will clearly warn and put off people buying property in Cyprus. 

The effect of both campaigns could have the effect of all new purchasers in Cyprus insisting on Title Deeds right now, causing a blight on those trying to re-sell without Title Deeds and a further curb on buying off plan from developers without Title Deeds for the land being available on purchase. Campaigners understand this and hopefully this effect will go away if Title Deed reforms are made urgently by the Cyprus Government.

On the other hand it could hold prices up as the supply of properties for sale with Title Deeds is likely to be small.  There is a prediction that the UK Property Market will not crash either because there is an under supply of houses in terms of demand. 

But with all these adverse pressures coming together on the Cyprus Property Market at the same time it seems now is the time to be prudent which in itself may create the self fufilling prophesy that a Cyprus Property Crash is Inevitable.
 

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