Based on the preliminary results from the Bank of Cyprus, problematic housing loans account for just 9.4% of its non-performing loans of €12.7 billion and only 10.2% of its NPLs in Cyprus.
Home construction in Cyprus is showing no signs of a recovery with the number of new residential properties authorised in March falling by more than half those authorised in March 2011.
The number of new houses authorised in January fell by forty percent compared with January 2011 and the number of new residential properties being built is unlikely to increase until the number of unsold apartments and houses is reduced.
Construction output in Cyprus experienced one of the highest falls in the 27 EU member states during the third quarter of 2011 and prospects for improvements in the short-term are not favourable.
Investments in the Cyprus construction sector continued their downward spiral in November according to the Island's Statistical Service, which released the latest building permit figures earlier today.
The Cyprus property market shrank by 21% in October compared with October 2010 and the number of sales recorded so far this year are down by more that 11% on the number sold in 2009, the year the market collapsed.
Although prices of property in some part of Cyprus have fallen by as much as 30 percent, the risk in the market has increased and calls for extreme caution by prospective buyers and their lawyers warns leading expert.
