24/11/2004 10:26
Demand for personal and construction loans in October 2004 recorded a significant increase. It seems, however, that demand for residences will drop in 2005. According to latest Central Bank data, total personal and housing loans granted by the commercial banks in Cyprus increased by £74.7 million and £9.3 million respectively. Similarly, total credits recorded an increase of £67 million.
Same data reveal that total loans for January – October 2004 showed an increase of 4.5% or £389.5 million to £9,065 million. For the same period, total credits for personal and construction purposes increased by £328.4 million or 8.7% and £143.6 million or 10.4% respectively.
Housing loans to remain stable in 2005?
Few weeks before the end of 2004, the prospects in the market do not show an increase in the housing loans. Despite the statements of the CPB Head of Economic Study, Sofronis Eteocleous that housing loans will continue to be the ‘driving force’ for 2005, the property market is subject to new trends, which are attributable to the increase in the construction cost and the imposition of VAT. “Although domestic demand for lower and middle cost houses will remain stable, the demand for more expensive houses will drop by 5% to 10%. The increase in the demand for housing properties will slow down”, Chairman of Real Estate Agents Association, Solomon Kourouklides said.
The demand for offices and stores will remain stable or will record a slight drop. “Banks will, therefore, seek to attract costumers with more attractive payment terms and lower interest rates”, Mr. Eteocleous concluded.
Same data reveal that total loans for January – October 2004 showed an increase of 4.5% or £389.5 million to £9,065 million. For the same period, total credits for personal and construction purposes increased by £328.4 million or 8.7% and £143.6 million or 10.4% respectively.
Housing loans to remain stable in 2005?
Few weeks before the end of 2004, the prospects in the market do not show an increase in the housing loans. Despite the statements of the CPB Head of Economic Study, Sofronis Eteocleous that housing loans will continue to be the ‘driving force’ for 2005, the property market is subject to new trends, which are attributable to the increase in the construction cost and the imposition of VAT. “Although domestic demand for lower and middle cost houses will remain stable, the demand for more expensive houses will drop by 5% to 10%. The increase in the demand for housing properties will slow down”, Chairman of Real Estate Agents Association, Solomon Kourouklides said.
The demand for offices and stores will remain stable or will record a slight drop. “Banks will, therefore, seek to attract costumers with more attractive payment terms and lower interest rates”, Mr. Eteocleous concluded.
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