Cyprus' property market is warming up after a six year retreat with improving local and international conditions boosting demand from Cypriot and foreign investors, according to Resolute Asset Management.
In an annual report, Resolute Asset Management said that a second year of economic growth in Cyprus, along with a stabilising banking sector and declining unemployment levels, have helped push residential property prices higher.
"Credit supply is currently limited. However, banks are working hard to resolve their Non performing loan problem and as their books gradually improve they will become more willing and able to lend, supporting growth in real estate demand and supply ," it said.
As part of efforts to manage NPLs, Cyprus banks have intensified loan restructuring efforts to meet the deleveraging objectives imposed by the European Central Bank. This includes consensual debt-for-asset swaps, whereby the Bank acquires the real estate collateral in exchange for partial or full debt forgiveness.