Housing bubble fueled by expats long since burst and some fairly good prices around now. So, when we pass a small bungalow (2 bedrooms max, largish but unbeautiful yard, solar panels, a little too central, busy road) plastered with for sale signs we idly inquire of the man watering the shrubs what the asking price is. A more than astonishing €900,000. Four times its apparent value, if not more. It is expensive, the man says unapologetically. J makes unfavourable comparisons to prices in California with similar climate. Yes, yes. No mention of superior have-to-be-seen-to-be-appreciated assets and no offer to show. As we leave, we can only conclude that the desire to sell is entirely fraudulent. Perhaps an attempt to convince creditors, the bank maybe, that every effort is being made to raise funds, while preventing actual loss of home.
Some 45% of Cypriot bank loans, as of July, were non-performong - repayments not being made - accounting for €27.1 billion out of loans of €60 billion, or almost 140% of GDP. Bizarrely, special legislation is needed to streamline repossession procedures so that the process takes months instead of years. Wildly unpopular in Cyprus where almost everyone is, or is related to, a non-payer, the legislation is, understandably, required in order to access continuing EU assistance funds.
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