News

Cyprus sales sink for almost 22 months in a row

Ivan Radford — Tue, 15 May 2012 12:39:00 GMT

Cyprus property sales have been steadily sinking for almost 22 months in a row, according to new figures from the Land Registry.

461 property purchase contracts were submitted in April this year, 15 per cent fewer than April 2011, as transactions continue to shrink across the country. Indeed, with the exception of January 2012, when the market saw a year-on-year increase, sales have dropped every single month since June 2010.

The latest slump follows a string of price cuts and legislation reforms, but Cyprus' economy has sapped local demand. Even with 26 per cent of contracts submitted in April belonging to overseas investors, transactions are now 70 per cent below the market peak of 2007.

The only region to see an increase in domestic activity was Paphos, which remains a popular hotspot for property buyers, while Limassol was the only region to see overseas investment increase.

"The government still has much to do to repair the Island's tarnished reputation abroad resulting from the on-going delays in issuing Title Deeds and the actions of unscrupulous property developers," adds Cyprus Property News.

Infographic – Cyprus: At a Glance

Ivan Radford — Wed, 09 May 2012 15:33:00 GMT

Paphos is the most popular place in Cyprus' property market, according to TheMoveChannel.com's latest At a Glance infographic.

The region has always been a hotspot for foreign investment and the overseas portal's infographic, based upon activity in the last 12 months, shows that almost one-third of buyers are not afraid to stick with somewhere familiar: Paphos attracted 32.77 per cent of all Cyprus property enquiries.

Limasol is the second favourite area, accounting for 21.85 per cent of enquiries since May 2011. Larnaca and Famagusta generated equal levels of interest, taking 13.45 per cent and 13.34 per cent respectively. Nicosia follows close behind them, accounting for 11.24 per cent of demand, but it is a long way from Paphos, which received almost triple the number of enquiries.

The least popular district by a significant margin is Kyrenia, in Northern Cyprus, which was responsible for only 7.35 per cent of activity on the portal during the last year. This lack of interest is the result of a lack of sellers as opposed to buyers; the majority of Northern Cyprus property listed on TheMoveChannel.com falls within Famagusta, suggesting that there are not many homeowners in Kyrenia looking to move but also that tourist developments tend to be in other regions.

Indeed, the Top 10 Cyprus locations searched for by buyers all fall outside of Kyrenia. Unsurprisingly, the three largest cities in the country attracted the most attention, with Limassol and Larnaca ahead of the capital Nicosia. Paphos' most popular place, Peyia, came in fourth, but the region accounts for three of the Top 10 destinations, reinforcing its high profile with buyers.

The infographic also displays the search behaviour of buyers over the last year. Users looking for Cyprus real estate in Google tend to search between May and July, most commonly using the phrase "Cyprus property". Like the other traditional markets depicted by the At a Glance infographics, the most widely targeted type of property is "houses for sale in Cyprus". Indeed, between the months of August and October last year, the demand for houses was so strong that it generated as many Google searches as the general phrase "property in Cyprus".

Editor Ivan Radford comments: "It's no secret that the official Cyprus property sales figures have decreased as the global financial climate worsens. In times of economic uncertainty, buyers frequently turn to familiar property hotspots for investment opportunities. With Paphos visibly the most popular region on the infographic, Cyprus is no exception. Indeed, the most commonly searched-for destinations in the country are almost all towns and resorts on the coast, which emphasises the importance of tourist demand for both lifestyle buyers and investors.

"The biggest surprise is that while international demand has reportedly decreased, searches in Google for ‘Cyprus property' have stayed relatively constant. The phrase appeared in 1,300 searches in April 2012 compared to 1,900 in May last year; a sizeable drop of 32 per cent but one that, compared to national statistics, should perhaps be sharper.

"The At a Glance infographic illustrates a lot of things we already know about Cyprus' property market, but the interesting thing it shows is that while demand for Cypriot real estate has apparently disappeared, buyer interest still seems to be strong."

Click here for the full infographic.

Notes to Editors

Founded in 1999, TheMoveChannel.com is the leading independent website for international property, with than 400,000 listings in over 100 countries around the world, marketed on behalf of agents, developers and private owners.

The website address is http://www.themovechannel.com and the office address is 24 Jack's Place, Corbet Place, Spitalfields, London, E1 6NN.

Contact Dan Johnson on 0207 952 7650 for further information.

Cyprus still struggling in "unfavourable economic climate"

Ivan Radford — Tue, 08 May 2012 12:15:00 GMT

The Cyprus property market is still struggling in the "unfavourable economic climate", according to the Royal Institution for Chartered Surveyors.

The RICS Global Commercial Property Survey revealed that prices across the country are still falling, while rental yields are unattractive to investors.

"[This is] mainly due to the unfavourable economic climate, the negative forecasts for the broader economy, the lack of sponsorship and the low performances," board member of RICS Cyprus Pavlos Loizou explained to Cyprus Mail.

"We are going through a long period of trying to balance the rentals with the prices, which will be followed by an extended period of inaction, until the economy stabilises and starts to recover," he added, suggesting that commercial property yields need to jump by several per cent to lift the market out of its slump.

Source: Cyprus Mail

Cyprus construction continues to collapse

Ivan Radford — Fri, 04 May 2012 12:35:00 GMT

Cyprus construction is continuing to collapse, with the number of building permits issued in February falling once again.

In total, 633 permits were issued, according to the Cyprus Statistical Service, a drop of 9.4 per cent from the 699 issued in February 2011.

The figures, considered by the Cyprus Statistical Service to be a leading indicator of future market activity, suggest an ongoing slump as the number of residential dwellings approved for construction fell by 33 per cent from 2011.

Source: Cyprus Property News

"Do not ignore" Cypriot bank writs, advise experts

Ivan Radford — Wed, 02 May 2012 10:44:00 GMT

Legal experts Judicare have advised UK buyers not to simply ignore writs from Cypriot banks regarding the non-payment of loans.

The writs, which give the buyer 30 days in which to file a court appearance in Cyprus to defend their non-payment, are being served by banks following the purchase of property in the country and could potentially see enforcement carried out upon the buyer's real estate in the UK.

Therefore, Judicare told Cyprus Property News this week that it was "critical that any client being served in the UK seek legal advice from Cypriot counsel within the stated deadline".

"We strongly advise that any recipient of such writs or termination notices act to address the matter and not simply ignore the service and the potential implications to the same," the law firm added.

Cyprus banks take "dramatic measures"

Ivan Radford — Tue, 24 Apr 2012 12:07:00 GMT

Cyprus banks are taking "dramatic measures" to raise the capital required after the Greek sovereign debt bailout.

In total, Cypriot banks need 2.5 billion euros by June this year to prevent further damages, with Popular Bank required to raise 1.35 billion euros to avoid dependence on the government. They, along with The Hellenic Bank and The Bank of Cyprus are following in Spain's footsteps and attempting to sell off distressed properties and non-core assets from troubled developers to meet the targets.

The lenders have already sold assets in Australia and Europe, OPP reports, but this still hasn't earned enough to cover the deficit.

Greek recovery forecast good news for Cyprus

Ivan Radford — Wed, 18 Apr 2012 12:03:00 GMT

Greece could see GDP growth of up to 3 per cent by 2013, according the country's prime minister. Lucas Papademos announced this week that the Greek recovery forecast predicts a bounce back from the financial crisis within two years.

The prediction, based upon the country sticking to existing reforms and austerity measures, also anticipates the recapitalisation of Greek banks with EU loans from Friday 20^th April.

The forecast is good news for developers in Cyprus, reports OPP, with one firm telling the trade publication: "This is excellent news. Previously, buyers wanting to buy a home in Crete were hit by a double edged sword [of underperforming property markets and] Greek banks concentrating upon the consolidation of their balance sheets, which has resulted in the mortgage door firmly closed to the granting of any loans."

Cyprus suspends property repossession bill

Ivan Radford — Tue, 17 Apr 2012 10:55:00 GMT

Cyprus has suspended the introduction of a new bill that would allow the repossession of mortgaged property.

The bill, prepared by the Land Registry Department, would have amended the Immovable Property Law to enable banks to repossess and sell off land and property. But the government has halted the plans "indefinitely due to the economic crisis", reports the Cyprus Mail.

"Perhaps this is not the appropriate time for the mass auctioning of immovable properties by lenders," wrote the Interior Ministry to legislators.

Only 5 homes in Famagusta were sold last month

Ivan Radford — Wed, 11 Apr 2012 12:18:00 GMT

Cyprus overseas sales are still shrinking, reveal the latest government figures.

The number of foreign buyers in the first three months of this year fell by over a quarter compared to 2011, according to the Department of Lands and Surveys. A total of 129 contracts (out of 563) were registered by overseas investors between January and March, with only five properties sold to foreign buyers in Famagusta last month.

Domestic market activity is also on the decline, adds Cyprus Property Buyers, with sales in March this year dropping to 434 compared to 465 in March 2011.

But the quarterly figures reveal an increase in domestic sales, comments Nigel Howarth: "The first three months have seen a 14% rise in sales compared with the same period last year, due to an almost doubling of sales in January. But there are signs that the decline in sales is getting smaller and sales may be about to reach their worst point."

RICS: Prices in Cyprus continue to fall

Ivan Radford — Thu, 22 Mar 2012 00:41:00 GMT

THE NINTH edition of the RICS Cyprus Property Price Index reports that property prices in the Island's main urban areas continued to fall during the fourth quarter of 2011 although there was a small increase in apartment rental values.

Commenting on the latest Index Pavlos Loizou MRICS, Board member of RICS Cyprus, said "During the fourth quarter of 2011 Cyprus' economy bore the consequences of the decoupling of the Greek economy, the slowdown in mortgage and corporate lending, the increased cost of electricity, and the rising rate of unemployment.

"The combination of the above, along with the decrease in salaries of government workers and uncertainty surrounding Cyprus' banking system, led to a decrease in retail spending and a slowdown of the economy".

"Whilst the first and second quarters saw some signs of muted economic growth, the third and forth quarters saw investors postpone their decision making and banks retrenching by limiting the amount of credit available. This led to a low transaction turnover and to reduced interest, especially by local buyers, as they were more affected by the increase in unemployment and the decrease in credit."

Source: Cyprus Property Buyers

Paphos homes in danger of collapse after heavy rain

admin — Tue, 20 Mar 2012 09:30:00 GMT

A recently built six house estate in Armou near Paphos is in imminent danger of collapse after it was constructed on land locals had long been warned was unsafe.

The development looks like an earthquake has struck. All of the houses show serious structural problems, from slanting floors, to the partial collapse of stairs, walls, swimming pools and patio areas. Outside drains are now exposed in one garden and retaining walls have been split apart.

Two of the access roads to the development are currently impassable with giant gaps in both, and huge pieces of tarmac have been dislodged. The third is barely useable, and may also be out of action at any time.

And just one more week of rain could see the homes falling down completely according to the president of Paphos’ architects and civil engineers association, Chrysostomos Italos.

Source: Cyprus-Property-Buyers.com

Dreams of a home in Cyprus turn into a nightmare

admin — Wed, 14 Mar 2012 09:48:00 GMT

When Steve Noonan, a legal adviser for Cleveland Police, bought his two-bedroom apartment off-plan at the Cypriot development of St Nicolas in the town of Chloraka, near Paphos for only £160,000 in 2008, it seemed too good to be true.

"And the problem is, it was too good to be true," he says, particularly when a debt collection agency in the UK started sending him letters, texts and phone calls demanding mortgage repayments on his Cypriot property, or his family home in Skelton, Yorkshire and other assets would be repossessed by bailiffs.

The deal involved a UK-based agent, the major Greek and Cypriot Alpha Bank, and the Cypriot developer Alpha Panareti. Mr Noonan and his wife Eugenie say they were told that repayments to Alpha Bank would be only £560 a month through a 25-year interest-only loan.

Source: Cyprus-Property-Buyers.com

Construction sector in recession for second year

admin — Fri, 09 Mar 2012 06:25:00 GMT

The Construction sector continued in recession for the second year running in 2010 according to a report “Construction and Housing Statistics, 2010″ recently published by CySTAT.

The main developments in the sector during 2010 were:

1. The construction sector continued for the second year in a row to exhibit signs of recession. The rate of growth of the sector in 2010 (in terms of value added at constant prices) is provisionally estimated to have recorded a decrease of 7.0% compared to a decline of 18.6% in 2009.

2. The gross output of the sector at current market prices was reduced in 2010 by 9.7% to €3,048.8 million compared to €3,376.3 million in 2009. The subsector of buildings construction and civil engineering recorded a decrease of 6.2%, while the subsector of land and buildings development registered a decline of 22.7%.

3. New residential buildings accounted for 46.4% of the total gross output of the subsector of buildings construction and civil engineering, new non-residential buildings (offices, shops, hotels, factories, airport buildings, etc.) for 20.9%, new civil engineering projects (roads and bridges, water supply and sewerage networks, telecommunications and electricity lines etc.) for 24.5% and repairs and maintenance for the remaining 8.2%.

Source: Cyprus-Property-Buyers.com

Building permits decrease by 14.5 per cent

admin — Fri, 17 Feb 2012 06:28:00 GMT

Building permits fell 14.5 per cent in 2011 compared to the corresponding period of the previous year, according to data issued by the Statistical Services.

A total of 7,506 building permits were issued between January and December 2011.

At the same time, the total value of these permits decreased by 21.8 per cent and the total area by 22.8 per cent. Τhe number of dwelling units recorded a decrease of 38.2 per cent.

The number of building permits authorised by the municipal authorities and the district administration offices during December 2011 stood at 560. The total value of these permits reached €189.3 million euros and the total area 213.900 square meters. These building permits provide for the construction of 573 dwelling units.

Source: Cyprus-Mail.com

Investor appetite grows as commercial foreclosures keep rising globally

admin — Tue, 14 Feb 2012 13:00:00 GMT

While investor appetite rose dramatically towards the end of 2011, the level of distressed properties* coming to the market is set to keep on rising globally, according to RICS.

Released today, the latest RICS Global Distressed Property Monitor reveals that two thirds of the countries surveyed anticipate a rise in forced selling of commercial buildings for the first quarter of 2012. Unsurprisingly, the number of commercial foreclosures is set to rise at the fastest pace in the Euro area.

Once again, the countries at the centre of the eurozone debt crisis are worst hit. The Republic of Ireland, Portugal, Spain and Italy expect the highest number of foreclosures. As previous reports have shown, the highly volatile economic and financial context has started to affect steadier markets. Property professionals in France and Germany also anticipate more distressed selling.

Source: Property-Magazine.eu

European Commission replies to property complaints

admin — Mon, 13 Feb 2012 12:10:00 GMT

The Civil Justice Directorate of the European Commission has replied to numerous letters of complaint it has received concerning Cyprus property developers and unfair commercial practices.

Numerous letters have been sent the European Commission Vice-president and commissioner responsible for justice, fundamental rights and citizenship, Viviane Reding, complaining about the unfair practices of the property industry in Cyprus.

Source: News.Cyprus-Property-Buyers.com

Cyprus property sales jump 97 per cent

Ivan Radford — Thu, 09 Feb 2012 12:29:00 GMT

Photo credit: Lisa_on_Flickr

Cyprus has long been the black sheep of the overseas property family. With its economy in turmoil, hit hard by the Eurozone crisis, prices and demand have been plummeting for months. But Cyprus surprised the world this week with the news that domestic property sales in January jumped by 97 per cent compared to 2011.

The figures, published by the Department of Land and Surveys, show that 697 local sales were completed in January, compared to 354 in January the year before, marking the second consecutive monthly increase in transactions for the market.

The rise, which followed a 22 per cent increase in December, has been attributed to the tax incentives introduced by the government last year. The incentive, which reduces VAT for first-time-buyers who live there permanently, also abolishes Property Transfer Fees on the first sale of a property for six months.

Since 2004, when domestic buyers were priced out of the market, property transactions have dipped. "A fall in the Island's GDP and rising unemployment means that the ‘good days' have gone", admitted real estate analysts Leaf Research to Cyprus Property News last month.

But now local investors are rushing to complete transactions before the deadline arrives.

So what does this boom mean for overseas investors?

While locals look to Limassol for property, Paphos is the primary place of choice for international investors. According to the Land Registry, 35 per cent of overseas purchases in 2011 took place in the popular town. But demand continued to dip, with sales volumes dropping by 18 per cent compared to 2010.

As Greece, Italy and Spain continue to cause wider economic concern, confidence in Cyprus property remains low abroad - particularly in the UK, where Brits make up the main buyer demographic. Scandals over missing title deeds and developers extorting investors' money have scarred many, prompting the government to introduce new measures last year to try and repair the country's tarnished image. Meanwhile, developers are busy targeting China in an attempt to find buyers unaffected by either crisis.

In January this year, 106 contrasts were deposited by overseas investors in the Registry, indicating almost the exact opposite of the upward domestic trend. "To put this into perspective," writes Global Edge, "in 2007 sales to foreigners averaged 940 per month."

Yet while overall foreign transactions fell by 37 per cent at the start of 2012, sales in Paphos actually increased by 23 per cent.

With prices predicted to fall throughout the year and the tax incentives in place, the cost of purchasing a home is certainly low enough to be attractive. But as investors await compensation, Cyprus is still searching for a way to restore confidence in its property market. If the current trend continues for another few months, could a surge in domestic transactions be enough to convince buyers that it's safe to return?

Not scared of Cyprus property?

Browse our listings of houses, condos and other real estate in Cyprus:

http://cyprus.themovechannel.com/property/all

Luxury Cyprus resort starts targeting Chinese market

admin — Fri, 03 Feb 2012 05:18:00 GMT

Cyprus luxury project Aphrodite Hills is targeting Chinese buyers in a step away from traditional purchaser markets.

Speaking exclusively to OPP Miranda Zachariou, communications manager for Aphrodite Hills said: “As well as our core British and Russian markets, this year we are also starting to look at Chinese buyers.”

Zachariou explained that the investment potential of the Chinese market “They have a good economy and the Chinese are making investments. Plenty of Chinese students study at the universities in Cyprus.”

“It is a bit of an unknown for us, but we are excited and we shall see what happens.”

Source: OPP.org.uk

Cyprus: Property market review and expectations for 2012

admin — Tue, 24 Jan 2012 01:49:00 GMT

Mr Loizou, lead consultant with niche real estate market research company Leaf Research, spoke of the economic factors and other issues that had resulted in dramatic downturn in sales that started in 2008.

“A fall in the Island’s GDP and rising unemployment means that the ‘good days’ have gone” said Mr Loizou, adding that “we are probably approaching the worst point, but things are unlikely to get back to where they were.”

Since January 2010, loans for housing have increased by 17% (€1.818 billion) and have rocketed by a staggering 197% since 2006. “The high cost of servicing these loans combined with increasing interest rates is putting a greater financial burden on households” said Mr Loizou.

The reduction in domestic sales started in 2004 as salaries failed to increase in line with the rising cost of housing. Although wages kept pace with construction costs, land prices rocketed by 576% between 1998 and 2008, pricing many local buyers out of the market.

Source: Cyprus Property News

Paphos 'a top target' among overseas property buyers

admin — Fri, 20 Jan 2012 10:47:00 GMT

The real estate market in Paphos had the highest percentage of overseas buyers in 2011, according to new figures.

Cyprus Property News highlighted the data published this week by the country's land registry, which revealed international investors accounted for 35 per cent of house purchases in Paphos.

Famagusta and Larnaca were not far behind, with 32 per cent and 31 per cent of deals completed with foreigners respectively.

Nicosia, the nation's capital, is less reliant on overseas purchasers, however, with just 14 per cent of its property deals made by this demographic. Overall, the level of real estate transactions in Cyprus fell by 18 per cent in 2011, compared with 2010, the publication revealed.

Source: PropertyShowrooms.com

Buyers in Cyprus can save under new transfer fee waiver

admin — Wed, 18 Jan 2012 06:48:00 GMT

The abolition of transfer fees will save buyers thousands of pounds off a new property in Cyprus under a change in Cypriot law.

The change, which last for six months only, allows those who pay VAT when buying a property to avoid transfer tax, saving up to 8% on its value. Those who do not pay VAT on their property will save 50% on the transfer fee.

Traditionally Cypriot law requires a buyer to pay a property transfer fee at completion but, in a bid to stimulate growth in the island’s property market, the fees have been waived until June 2012.

Jonathan Salsbury, UK sales manager for Cybarco, a leading luxury developer in Cyprus, said it means a golden window of opportunity for buyers.

Source: PropertyWIre.com

What will it take to stop the rot in the property market?

admin — Thu, 05 Jan 2012 03:45:00 GMT

AS WE approach the end of the year it is apparent that the Island’s property market is in a deep recession with little hope of a recovery in the near future.

Domestic sales have been hit by the uncertainty in the property market, the lack of liquidity plus the high cost of loans, record levels of unemployment and the problems with the Island’s economy.

British buyers have virtually deserted the market as a result of the revelations about Title Deeds and the misdemeanours of property developers, real estate agents and banks featuring in the UK media.

Property sales to overseas buyers in Paphos, once a favourite of the British, are down by nearly 90% on the numbers sold in 2007 and are at half the number sold ten years ago at the start of the property boom.

Source: Cyprus-Property-Buyers.com

Property prices and rents in Cyprus continue downward trend

admin — Wed, 04 Jan 2012 06:15:00 GMT

Residential property prices and rents continued to fall in Cyprus in the third quarter of 2011, according to the quarterly index from the Royal Institution of Chartered Surveyors.

Property prices have been affected by financial problems in the eurozone and by an explosion at the Evagelos Florakis Naval Base which severely damaged the country’s main electric power station.

‘The combination of the turmoil in Greece with this unfortunate event caused severe disruptions in daily lives and a loss of people’s confidence in the abilities of the state. In turn, the explosion led to numerous accusation and discussions by parliamentarians and government officials which escalated causing political instability,’ said Pavlos Loizou of RICS Cyprus.

‘Whilst the first and second quarters saw some signs of muted economic growth, the third quarter saw investors postpone their decision making and banks retrenching by limiting the amount of credit available. In turn this led to a low transaction turnover and to reduced interest, especially by local buyers, as they were affected by the increased tension between government and parliament,’ he added.

Source: PropertyWire.com

Global housing markets struggling

Ivan Radford — Mon, 05 Dec 2011 11:29:00 GMT

The world's housing markets had a weak third quarter of 2011, according to the latest survey of worldwide house price indices prepared by the Global Property Guide. During the year to end Q3 2011, house prices fell in 25 countries (out of the 44 for which quarterly house price statistics are available) and rose in only 19.

Moreover, 26 housing markets performed more poorly during the year to the third quarter than last year, while only 18 countries performed better.

The Global Property Guide's statistical presentation uses price-changes after inflation, giving a more realistic picture than the more upbeat nominal figures usually preferred by real estate agents.

What is most remarkable this quarter is the wide variety of outcomes:

Brazil and India booming

India and Brazil's housing markets have continued their spectacular outperformance, with Delhi house prices up 22.68% during the year to Q3 2011, according to National Housing Bank (NHB) figures. There were strong house price increases in almost all India's major cities, reflecting the country's current high rate of consumer price inflation, despite a drop in demand resulting from the repo rate hike in October (currently at 8.50%), the 13th since March 2010, making home loans costlier.

Brazil's Sao Paolo had the second highest house price rise in the world during the third quarter, with house prices up 5.88% during the quarter, according to the FIPE- Zap price index. Sao Paolo had an astonishing year, with house prices up 20.26% during the year to Q3 2011. The country is experiencing an unprecedented boom, not least because it is the host country for the World Cup in 2014 and the Olympics in Rio de Janeiro in 2016.

Europe's mixed housing markets

The world's second strongest quarter-on-quarter house price rise occurred in an unexpected city - Vienna, where house prices surged by 5.44% during the quarter (and +4.25% on the year), continuing 6 years of nearly unbroken price rises for Austria's capital.

The Baltics have also performed strongly. Latvia is the third best performer among all reporting countries in our survey over the twelve months to Q3 2011. In Riga, standard type apartments rose 13.31% year-on-year, a quick comeback after a fall of 5.40% in the second quarter.

Following Latvia was Estonia, whose housing market is rallying after three years of terrific losses that began during the onset of the global financial crisis. During the year to end Q3 2011, house prices in Tallinn were up 12.30% with a quarterly rise of 2.71%.

Other European markets which have enjoyed satisfactory increases were Norway (+6.74%), France (+4.80%), and Switzerland (+3.35 %).

Modest house price increases were seen in Slovenia (+0.82%), Iceland (+0.76%), Germany (+0.66%) and Luxembourg (+0.55%) in the year to Q3 2011.

Ireland stays weak

The Irish housing market remains the world's weakest performer. House prices were down 15.61% year-on-year, the steepest decline since 2008. Quarter-on-quarter, Ireland's house prices slid 4.25%.

Several other European housing markets experienced accelerated downturns during the year ending in the third quarter of 2011, including Netherlands (-5.20%), Portugal (-6.77%), Slovak Republic (-7.94%), Warsaw, Poland (-7.95%), Spain (-8.41%) and Bulgaria (-9.65%).

Conversely, European countries which saw slower house price falls this year than the previous year include Turkey (-0.50%), Russia (-3.47%), Croatia (-4.59%), Hungary (-4.67%), Athens, Greece (-6.57%) and Kiev, Ukraine (-7.02%).

Asian housing markets now cooling

In Asia, several countries had house price increases during the year to end Q3 2011, albeit less strong than last year, following the government measures to curb the heat in their respective housing markets.

In Hong Kong, house prices were up 12.07% year-on-year, after a rise of 19.30% the previous year. In Malaysia, house prices rose by 3.15% year-on-year, after a rise of 5.76% during the same period last year. In Singapore, house prices rose by 2.73% year-on-year, a big drop from last year's 18.96%. In Taiwan, house prices were up a mere 0.46% year-on-year, after a rise of 6.97% during the same period the previous year. During the latest quarter, house prices were down 7.02%.

However, housing markets in South Korea and Philippines (Makati CBD) improved from a year earlier with price rises of 1.55% and 0.89%, respectively.

In Japan (Tokyo) and China (Shanghai), housing markets have been deteriorating since Q1 2011. House price declines are being reported across China, indicating the success of government measures during the past year. The country's skyrocketing housing prices have been blamed for social tensions and other economic problems.

Patchy progress for North America

The Canadian housing market has been a notable performer in the year to Q3 2011, with house prices in the six cities rising by 3.25% year-on-year, according to Teranet - National Bank Composite House Price Index. Record-low interest rates and a fairly stable Canadian economy have bolstered consumer confidence in the housing market. During the third quarter, house prices were up 3.46%.

In the United States, the housing market drifted lower as house prices plummeted by 7.22% (seasonally-adjusted) year-on-year to Q3 2011, according to the Federal Housing Finance Agency (FHFA). However, the number of homeowners who owe more than their homes' worth decreased modestly in the third quarter, though levels remained high.

Israeli house price boom now over

House prices in Israel fell 0.58% in the year to Q3 2011, the first drop since 2009. During the latest quarter, house prices were down 3.65%.

The moderation in home prices comes against the background of the continued increase in the number of building starts, the lagged effect of the increase in the interest rate, measures introduced by the Bank of Israel affecting mortgages, and steps taken by the Ministry of Finance in real estate taxation. The effect of these moves is expected to continue and be evident going forward.

Pacific housing markets heading down

In New Zealand, median house prices were down 4.30% from a year earlier, with a quarterly house price fall of 2.26%. However, there is optimism in the housing market buoyed by low interest rates and recovery following earthquakes in Christchurch.

High interest rates and global economic uncertainty have continued to impact the Australian housing market, and it slumped 5.55% in the year to Q3 2011, the third quarter in which annual house price falls were reported this year.

Accordingly, the Reserve Bank of Australia (RBA) lowered the benchmark interest rate in November, the first time since April 2009, moving to boost the nation's economy amid uncertainty stemming from Europe's debt crisis. The benchmark rate is currently at 4.50%.

Draft law abolishes Cyprus' "Property Transfer Fees"

admin — Thu, 10 Nov 2011 07:22:00 GMT

In an attempt to stimulate the Cypriot property market, the island’s MPs unanimously voted in the House of Representatives this week to abolish or reduce its official “Property Transfer Fees” for a period of six months.

The politicians have also proposed that:

· For those who pay VAT on their house purchase, no transfer fees will be payable.

· For those who do not pay VAT on their purchase, property transfer fees are to be reduced by 50%.

The draft law will be effective for six months, until the Cyprus government submits a full proposal to the House.

“Property Transfer Fees are based on the Land Registry’s assessment of the market value of a property at its date of purchase. However, using its discretion to reassess the amount of Transfer Fees payable, the Land Registry relies on its own historical data in a way that cancels out any transfer tax benefit of a ‘bargain-buy’, which can result in double the expected amount being levied,” Cyprus property News told OPP.

Source: OPP.org.uk

Video: North Cyprus property taxes

admin — Tue, 08 Nov 2011 05:22:00 GMT

If you buy a North Cyprus property, then there are 4 property taxes which need to be paid.

Leslie Hardy of Wellington Estates explains these taxes.

Watch the full video report on TheMoveChannel.tv:

http://www.themovechannel.tv/2011/11/north-cyprus-property-taxes/

Cyprus property sales down 21 percent in October

admin — Mon, 07 Nov 2011 08:10:00 GMT

The Cyprus property market shrank by 21 per cent 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.

Liquidity problems, record levels of unemployment and the huge uncertainty in the market continue to send the Cyprus property market into a tail-spin. With the exception of the suspension/reduction in Property Transfer Fees approved by parliament yesterday, there are still no signs of a recovery.

Sales fell for the 16th consecutive month in October, according to Department of Land and Survey figures published yesterday. The figures reveal that the number of contracts for the sale of property deposited at Land Registry offices throughout Cyprus fell to 565 compared with 714 in October 2010; a drop of 21 per cent.

Source: Cyprus-Property-Buyers.com

Top of the Props: America surprise second choice for buyers

Ivan Radford — Wed, 02 Nov 2011 12:36:00 GMT

Photo credit: Tommy Chang

America is now the second most popular overseas property destination in the world, according to the latest Top of the Props report from TheMoveChannel.com.

After a long-running battle between France and Spain at the top of the chart, the US has unexpectedly turned the two-horse race into a three-way competition for top spot. The country rose by two places in the rankings, replacing the traditional runner-up as the surprise second favourite for buyers in October.

America has always been one of the most popular places for foreign real estate investment, alongside France, Italy, Portugal and Turkey. But while Spain remains the country of choice for buyers (receiving 3 per cent more enquiries than the month before), America saw an increase of 1.06 per cent in enquiries last month.

That number may seem like a small increase, but interest in US property has grown by 3 per cent over the past three months, indicating a consistent appetite from overseas buyers for the country's heavily discounted property market. France had 1.57 per cent fewer enquiries last month, while interest in Portugal also waned, by 2.42 per cent - perhaps a sign that the continuing Euro crisis is sapping interest in continental property markets.

America's ascension was just one of several surprises, as Cyprus and Thailand both jumped several places to enter the Top 10 most popular destinations. Cyprus has been suffering from unemployment and economic woes in the years since the housing boom, but the country is now starting to claw back buyers, as property prices dropped for the sixth quarter in a row last month. New legislation to allow buyers to officially receive property title deeds is also encouraging investment, with many foreign investors already taking advantage of the more transparent system.

The Thai property market has just been hit by major flooding, although high-rise condominium sales are expected to grow as a result. Indeed, overall property transactions in Bangkok actually increased by 1,500 during the second quarter of 2011, according to CB Richard Ellis. But while Thailand and Cyprus made October a month of surprises, the biggest shock remains the US victory over France, as real estate away from the Eurozone continues to demonstrate its pull.

Director Dan Johnson comments: "French real estate has been seen as a safe investment zone in Europe for some time, so America snatching second place is a great achievement. The US market is currently full of foreclosures and repossessed property, with the affordable prices tempting buyers away from the French ski slopes and into the States.

"It's interesting to see Cyprus and Thailand regain their status as former Top 10 property destinations. The flooding may see Thailand's popularity decrease next month, but Cyprus' low prices leave a lot of room for investment as buyers look for familiar markets amid ongoing economic uncertainty."

The full breakdown of the Top 40 is as follows:

Overall enquiries for October 2011
Rank	Country	Share	Change
1	Spain	18.01	Non-mover
2	USA	9.27	Up 2
3	France	7.93	Down 1
4	Portugal	6.86	Down 1
5	Italy	6.29	Non-mover
6	Turkey	4.07	Up 1
7	Cyprus	3.65	Up 4
8	Thailand	3.17	Up 7
9	Bulgaria	2.77	Down 3
10	Brazil	2.67	Down 2
11	Greece	2.33	Up 1
12	Malta	2.23	Up 2
13	Barbados	2.02	Up 4
14	Germany	2.02	Down 4
15	Morocco	1.84	Down 6
16	Egypt	1.66	Up 3
17	Cape Verde	1.61	Up 4
18	Poland	1.19	Up 2
19	India	1.01	Down 3
20	Switzerland	1.01	Up 7
21	Hungary	0.96	Up 2
22	Cayman Islands	0.95	Non-mover
23	UAE	0.95	Up 5
24	Croatia	0.8	Down 6
25	Canada	0.8	Down 12
26	Slovenia	0.74	Down 1
27	Mexico	0.68	Up 13
28	Australia	0.49	Down 4
29	St Lucia	0.43	Down 3
30	Jamaica	0.41	Up 1
31	Indonesia	0.38	Down 1
32	Montenegro	0.35	Down 3
33	Malaysia	0.2	Up 8
34	Austria	0.19	Up 2
35	St Vincent and Grenadines	0.19
36	Albania	0.18	Down 1
37	Singapore	0.18
38	Lithuania	0.16
39	Belize	0.15
40	Philippines	0.15	Down 1

Notes to Editors

The website address is http://www.TheMoveChannel.com and the office address is 45 Lafone Street, Shad Thames, London, SE1 2LX.

Contact Dan Johnson on 0207 952 7650 for further information.

Standard & Poor’s downgrades Cyprus’ credit rating

admin — Mon, 31 Oct 2011 07:28:00 GMT

Standard & Poor’s cut Cyprus’ long-term sovereign credit rating by a notch to ‘BBB’ from ‘BBB+’ yesterday, referring to the banking system’s exposure to the Greek sovereign debt.

In its press release, Standard & Poor’s said “In our opinion, the contingent liabilities posed to the Cypriot government by the Cypriot banking system’s exposure to Greece continue to weigh heavily on the ratings on Cyprus.”

“We believe that a Greek default scenario with private sector involvement (PSI) or “haircuts” higher than previously agreed by commercial creditors would necessitate the recapitalization of some domestic banking institutions.”

“We also believe the effect of a Greek government default could reverberate through Cyprus’ economy in the form of private-sector funding costs increasing beyond our previous expectations, thereby reducing investment and overall domestic demand.”

Source: Cyprus-Property-Buyers.com

Property prices continue to fall in Cyprus

admin — Mon, 24 Oct 2011 08:34:00 GMT

Cypriot property prices have fallen for the sixth consecutive quarter, according to reports from the Central Bank of Cyprus.

During April, May and June of this year house and apartment prices fell by 0.9% - and on an annual basis prices have fallen by nearly 5%.

Over the past twelve months, Paphos has suffered the biggest fall in apartment prices (-18.4%) followed by Larnaca (-10.8%). Apartment prices in the seaside towns also fell, with Famagusta being the worst-hit area, while those in the island’s capital, Nicosia, appear to have stabilised.

The falling prices are being blamed on a variety of factors including the country’s high unemployment, high interest rates and the fact that during the boom years prices spiralled to an unrealistic level.

Source: A Place in the Sun

Cyprus investment scheme investigated by BBC

admin — Wed, 19 Oct 2011 08:27:00 GMT

In a programme broadcast last evening, BBC Inside Out North East and Cumbria investigated claims made by families that deals set up by Teesside-based businessman Andrew Laird have left them facing ruin.

The deal was to buy an apartment off-plan and then sell as soon as it was finished. “So after three years, you were looking at a £60,000 profit. Sit back, sell it on and make a profit – as simple as that.” explained one of ROPUK’s clients to BBC investigator Chris Jackson.

“He (Andrew Laird) had been our financial advisor for ten years,” said Olwyn Harrison “and it looked like a good investment. Low mortgage for us to afford, good rentable properties and we liked the sound of it”.

Andrew Laird was arranging the sale of all the apartments at the Alpha Panareti development at ‘St. George Hills’, promoted as a “new dawn in investment opportunities”, under the name of Roseberry Overseas Property or ROP UK.

Source: Cyprus-Property-Buyers.com

Cyprus sales continue to plummet

admin — Mon, 17 Oct 2011 10:37:00 GMT

Property sales volumes continue to plummet in Cyprus, with no let-up in the downward spiral since July 2010. The number of homes being sold is now at a lower level than when the market crashed in 2009.

A Cyprus Department of Lands and Surveys report published this week shows that the number of contracts for the sale of property deposited at Land Registries throughout Cyprus in September fell for the fifteenth consecutive month.

Home sales numbers crashed by 11.5% last month with the number of contracts deposited reaching 608 compared with the 687 deposited in September 2010.

Total sales during the first nine months of this year now stand at 5,317, down 17.5% on the 6,446 sold in the first nine months last year. Sales are now down by nearly 10% on those of 2009; the year the market collapsed.

So far this year, Limassol is weathering the storm well with sales by just 0.8% below those of last year. But in Larnaca sales have fallen by 27.5%, in Nicosia they are down 23.7%, in Paphos they are down 22.5% and sales in Famagusta have fallen by 15.9%.

And sales to overseas buyers, which account for a quarter of all sales, fell by 37.2% last month, with the number of contracts deposited reaching 113 compared with 180 deposited in September 2010.

Economic uncertainty, lending restrictions and high interest rates are taking their toll on the island and, according to a recent report from Savills Research called "Spotlight on Second Homes Abroad," "buyers now favour more spacious units, in line with traditional overseas property buying trends. This reflects that today's buyers are motivated by lifestyle reasons rather than simply the opportunity for financial returns."

Cyprus needs to build more upmarket homes. According to Savills, "preference for low density environments and good accessibility, proximity to beaches, and the opportunity to sample local cuisine and culture, are all factors influencing choice of holiday home destination. Almost 60% of holiday home owners prefer quiet rural and village environments to urban areas."

Source: OPP

Cyprus minister gives Oroklini theme park the green light

admin — Mon, 03 Oct 2011 09:01:00 GMT

At last Monday’s meeting, Interior Minister Neoclis Sylikiotis give the green light to the proposed theme park in the Oroklini area, according to reports in the local media.

At the meeting, the Minister gave the project the green light and issued instructions for the exchange of some 500 donums (approximately 67 hectares) of state-owned land in the area needed for the construction of the park. The state land will be exchanged for land of equivalent value owned by individuals involved in the company formed by local land owners.

In addition, instructions were given to change the zoning of the area to accommodate the development and the necessary changes to the infrastructure.

Source: Cyprus-Property-Buyers.com

Cyprus VAT reduction for first-time home buyers agreed

admin — Mon, 26 Sep 2011 09:30:00 GMT

Following a series of proposals, counter proposals, discussions and debates, a compromise deal has been reached on the VAT reduction for first-time home buyers.

With 33 MP voting in favour and 18 against, the bill reduces the VAT payable on new homes measuring up to 275 square metres to 5%.

If the government accepts the bill, the changes will come into effect on 1st October.

Agreement on the compromise bill was reached yesterday following an urgent meeting between the Cyprus Finance Minister, Kikis Kazamias, and the House Finance Committee.

Source: Cyprus Property Buyers

Cyprus property sales slump slows

admin — Thu, 15 Sep 2011 07:12:00 GMT

DEPARTMENT of Lands and Surveys published yesterday show that the number of contracts for the sale of property deposited at Land Registries throughout Cyprus in August fell for the fourteenth consecutive month.

However, the 4.9% fall in sales is the smallest for almost a year giving hope that the devastating decline may soon be coming to an end. Last month 527 contracts were deposited compared with the 554 deposited in August 2010.

Limassol performed well, with sales up 25.5%. Larnaca also saw an increase, with the number of sales rising by 2.6%. But sales in Nicosia, the capital, fell by 22.5%, while those in Famagusta fell by 21.4% and those in Paphos fell by 15.8%.

Total sales during the first eight months of this year stand at 4,709, a decline of 18.2% on the 5,759 sold in the first eight months last year. Sales are now down more than 8% on those of 2009; the year the market collapsed.

Source: Cyprus-Property-Buyers.com

Cyprus considers property tax cuts as austerity package passed

admin — Wed, 31 Aug 2011 07:01:00 GMT

The Cyprus parliament voted through a €220 million (US $319 million) austerity package this week as the island tries to stave off an international bailout.

The measures being put into place include cuts to the Cypriot public payroll and a move to force civil servants to make contributions toward their pensions.

Parliament has also raised tax rates on dividends, interest and income, introduced an annual business registration fee and increased property taxes.

Cyprus is trying to slash this year’s budget deficit to 5.5% of GDP from a predicted 6.5%, with the aim of getting it down to less than 2% in 2012.

Source: OPP.org.uk

Cypriot real estate market falls

admin — Tue, 16 Aug 2011 06:37:00 GMT

New figures from the Cypriot Land Registry have showed that the slump in the country’s property market shows no signs of abating. The number of sales of property in Cyprus has fallen for thirteen consecutive months and the number of houses sold fell by almost one quarter between July 2010 and July 2011.

Sales falling and could have ‘huge economic costs’

Cyprus property News reports that the number of contracts deposited at Land Registries throughout Cyprus in July for the purchase of property fell by almost a quarter between July 2010 and July 2011. There were just 605 contracts deposited in July this year compared to 797 in the same period last year.

Total sales of property in Cyprus have fallen almost one fifth, from 5,205 in 2010 to 4,182 in 2011. Sales are also down by 7 per cent on 2009 where 4,493 properties were sold between January and July.

Source: HomesGoFast.com

Paradise Hills buyers face uncertain future

admin — Tue, 26 Jul 2011 06:09:00 GMT

Buyers of properties at Paradise Hills development in Marathounda village in Paphos are facing an uncertain future over the completion of the site and ownership of their homes, after a rescue plan was rejected by the Bank of Cyprus (BoC).

Thirty three of the 46 units have been sold but only three are now occupied. Property owners say have been plagued by a raft of problems since purchasing their homes and now have no idea what the future holds for them.

After problems were highlighted a year ago, the site was ultimately connected to the main electricity supply, which residents say has made their day-to-day life more bearable. They had previously been reliant on power supplied by costly generators.

Last year their plight was also filmed for a popular UK TV show ‘Holiday Homes from Hell’ which was screened by ITV on 19th July.

Source: Cyprus-Property-Buyers.com

Cyprus could need bailout after blast

admin — Thu, 21 Jul 2011 06:52:00 GMT

Cyprus may need foreign financial aid unless drastic action is taken to deal with the impact of an explosion which decimated its largest power station, central bank governor Athanasios Orphanides has warned.

Already under market pressure because of its links to debt-laden Greece, economists have warned the island could face a bill of up to €1 billion after the blast a week ago knocked out half of its power supply.

"To avoid the worst, including admission into (a) support mechanism and all that that entails for the economy ... further and more drastic measures must be taken immediately," Orphanides said in the July 18 letter sent to Cypriot president Demetris Christofias and copied to political party leaders.

"Weighing up all the facts, the unfavourable international environment, the difficulties in resorting to external borrowing and the additional economic impact from the recent events, I believe that the economy is in a state of emergency, comparable to that of 1974," Orphanides wrote.

Source: Independent.co.uk

Cyprus property picture improves

admin — Tue, 19 Jul 2011 06:24:00 GMT

Figures recently released by the Department of Lands and Surveys show that 1,316 property transfers took place at District Lands Offices throughout Cyprus during June; an increase of more than 100 on the number that took place in May.

Speaking with INBNews last week Interior Minister Neoclis Sylikiotis noted that there is now the possibility of issuing Title Deeds at the rate of 1,200 a month and 25,000 annually by reducing cumbersome procedures and making the system faster.

So far this year, 6,213 transfers of property have taken place. These properties had a declared sale price of €953,715,113.69, which the District Lands Offices uplifted to an accepted price of €1,027,779,359.71; an increase of 7.8%.

Source: BuyAssociation.co.uk

Cyprus property transfers continue to improve

admin — Mon, 11 Jul 2011 11:40:00 GMT

Source: Cyprus Property News

Cyprus: UN hosts new unity talks in Geneva

admin — Fri, 08 Jul 2011 06:56:00 GMT

The leaders of divided Cyprus are meeting UN Secretary General Ban Ki-moon in Geneva in a new effort to reach a deal on reunification.

Correspondents say the UN wants both sides to resolve the outstanding issues in the next 12 months, before Cyprus takes up a steering role in the EU.

The Greek and Turkish Cypriots remain divided Over property, the right of return of the displaced, and security.

A UN peacekeeping force has been deployed on the island since 1964.

Source: BBC.co.uk

Cyprus developers association calls for tax review

admin — Tue, 05 Jul 2011 08:33:00 GMT

IN A MEMORANDUM to President Demetris Christofias the Cyprus land and Building Developers Association has put forward a number of suggestions to revive the Island’s property industry.

The memorandum calls on the President not to impose new taxes on businesses as these will result in a further deterioration in the business climate by depriving businesses of working capital and increasing unemployment.

The Association suggests that the government should provide incentives and measures to help revive and revitalize the property market and in particular, a review of the Property Transfer Fee bands, VAT and Capital Gains Tax.

Ten years ago, the average apartment cost the equivalent of €51,000 and attracted Property Transfer Fees of €1,500. Today, that same apartment would cost €200,000, and would attract Property Transfer Fees amounting to €9,000 plus €30,000 VAT; that’s a 2,600% increase in tax!

Source: Cyprus-Property-Buyers.com

Guilty of tax evasion unless you prove otherwise

admin — Tue, 28 Jun 2011 06:49:00 GMT

IN virtually all civilised countries, the burden of proof rests with the person or organisation that lays charges against you; in other words, you are considered to be innocent until you have been proven guilty.

However in Cyprus, the reverse is true when it comes to paying your Property Transfer Fees at the Land Registry.

Using its discretionary powers to reassess Property Transfer Fees, the Land Registry relies on historical data to assess the market value of a property – and it will use that data as the basis for calculating the transfer fees to be paid by the purchaser.

The reason for the Land Registry’s reassessment, we are told, is that vendors and purchasers often under-declare the price of a property in efforts to defraud the state of much-needed tax revenues; by under-declaring the price, vendors reduce the amount of Capital Gains Tax they pay, while purchasers reduce their Property Transfer Fees. Of course for this fraud to take place both the vendor and the purchaser have to collude to deceive the authorities.

Source: Cyprus-Property-Buyers.com

Cypriot diplomats to meet UN experts on property issue

admin — Mon, 27 Jun 2011 11:55:00 GMT

Permanent Secretary of the Cypriot Ministry of Foreign Affairs, Ambassador Nicos Emiliou and member of the Cyprus negotiating team, Toumazos Tselepis, will arrive in New York Tuesday for talks with the team of experts appointed by the UN to help the two sides in the peace talks on the property issue.

According to diplomatic sources, the two Cypriot officials will meet a different team of experts during this visit and that discussions will centre on the legal aspects of the property issue, such as setting up of a committee for compensation.

The Permanent Secretary of the Ministry of Foreign Affairs will also meet UN Under-Secretary-General Lynn Pascoe and the five permanent members of the Security Council to discuss the latest developments on the Cyprus issue, in view of the 7th July Geneva meeting of Secretary General Ban Ki-moon with President of the Republic Demetris Christofias and Turkish Cypriot leader Dervis Eroglu.

The aim of the SG and his associates, as was repeatedly stated in public, is for the Geneva meeting to result with an action plan to overcome the differences that remain.

Source: Farmagusta Gazette

No decision on proposals to hike Cyprus property tax

admin — Fri, 24 Jun 2011 07:22:00 GMT

GOVERNMENT plans to introduce a €1,000/annum tax on profitable companies for two years have been received positively by the Chamber of Commerce and Industry (KEVE).

The government estimates that if around 100,000 of the companies registered in Cyprus pay this tax it will result in an inflow of some €100 million/annum into the state’s coffers.

There are approximately 170,000 companies registered in Cyprus; 70% of these are foreign and 30% are Cypriot. But the tax will only be levied on those companies that have returned a profit in the last three years.

Plans to increase property taxes were also discussed, but no decision was reached. Chairman of the employers’ federation Filios Zahariades said that “There was a preliminary discussion, which we will continue to see how the immovable property tax will become better and fairer, and we will revisit the matter.”

Source: Cyprus-Property-Buyers.com

Residents scheme sees foreign interest in Cyprus shooting up

Sarah Kendell — Wed, 15 Jun 2011 10:49:00 GMT

A few bad stories in the press might have seen Brits cool their interest in Cypriot property, but business is still booming on the island nation due to an influx of Russian and Asian buyers, reports Overseas Property Professional.

In April and May alone, Cyprus experienced a year-on-year increase in foreign property sales of 19% and 21% respectively, a healthy achievement given the general slowdown in the European market. According to Yianni Misirlis of locally based developers and agents Imperio Properties, this is mainly due to an influx of Russian and Chinese buyers taking advantage of the lesser-known Cypriot residents' scheme for real estate owners on the island.

"There has been a notable percentage increase in business from Russia and China by our system that makes overseas buyers eligible for a residential visa", Misirlis told Overseas Property Professional. "The Russians have been aware of the rule for several years now and like to take advantage of it. The Chinese are also coming in ever-greater numbers."

Misirlis also indicated that the improvement of transparency with regard to title deeds meant Cyprus was ironing out its problems with scam developers and becoming a safer place for buyers to invest than ever before. "The Title Deeds problem fell in to different categories, all of which have been resolved by the new law", said Misirlis, referring to the recent reform that allows buyers the absolute legal right to receive their title deeds, providing their contract of sale is lodged with the Land Registry.

"Many 'rogue' development companies...went bankrupt or disappeared halfway through the building process, having taken money from the buyer. That buyer is now entitled to receive his property, provided he has a registered contract of sale."

Interested in property in Cyprus?
Browse our listings of apartments, houses and other properties for sale in Cyprus here: http://cyprus.themovechannel.com/property/all/

Foreign demand for Cyprus homes

admin — Thu, 09 Jun 2011 07:10:00 GMT

Cyprus has enjoyed continued growth in overseas demand for homes last month.

Foreign buyers were able to negotiate significant discounts on properties because of Cyprus' ailing economy and poor domestic property sales market.

Official figures reveal that a total of 187 property contracts were deposited by foreigners compared with 154 in May last year, a 21% increase year on year.

Property sales improved in most parts of Cyprus last month, led by an 86% annual hike in Nicosia property sales.

Source: Assetz.co.uk

Overseas demand for homes in Cyprus improves

admin — Tue, 07 Jun 2011 07:42:00 GMT

Foreign demand for homes in Cyprus continued to improve last month, with some overseas nationals taking advantage of a poor domestic property sales market and a weak Cypriot economy to negotiate significant discounts on properties.

Official data shows that 187 property contracts were deposited by foreigners compared with 154 in May 2010 – 21 percent year on year.

Property sales last month improved in most parts of Cyprus, led by an 86 per cent annual hike in Nicosia property sales, followed by Famagusta, up 71 per cent, Limassol (up 49 per cent) and Larnaca (up 21 per cent). However, property sales in Paphos last month fell 38 per cent during the same period.

Cyprus property sales to overseas nationals has increased by 17 per cent during the first five months of this year compared to the corresponding period in 2010.

Source: APlaceintheSun.com

Cyprus – So Near And Yet Maybe So Far From The Greek Financial Storm

admin — Tue, 07 Jun 2011 06:57:00 GMT

A strange coincidence brought a group of international insolvency and restructuring experts to the same Limassol hotel this past weekend as a combined meeting of IMF and World Bank representatives from far and wide. It was a powerful reminder of events in nearby Greece, where the outcome of the sovereign debt crisis remains in the balance, not helped by the latest collapse of negotiations between rival political groupings aimed at creating consensus on much needed austerity measures.

On the surface, Cyprus seems serenely unconnected to the economic mayhem taking place 500 miles away across the Mediterranean, although the UK half term holidays didn’t seem to have hotels, restaurants and bars exactly buzzing with trade.

What activity there was seemed to have a distinctly Russian or Eastern European accent to it, hopefully a decent bulwark against the fall in spending by cash strapped British ex-pats struggling to meet their escalating euro-denominated cost of living out of sterling-based pensions and savings income.

The economy may also take a hit from the UK’s austerity measures as Lord Ashcroft reviews Britain’s overseas military bases. Over 3000 forces personnel are located in Cyprus, and around 1600 local civilians are employed in support roles. The bases cover 3 percent of the island.

Source: FinancierWorldwide.com

Low Cypriot property sales could encourage price falls

admin — Wed, 01 Jun 2011 07:25:00 GMT

A decline in the level of property sales in Cyprus could see potential buyers given more opportunity to pick up a bargain home.

The latest official statistics reveal that there has been a decline in transactions of over 15 per cent in the fist three months of the year, compared to 2010 figures.

As a result, some vendors may be forced to lower their asking prices if they are going to have a realistic chance of attracting buyers back, A Place in the Sun reports.

Indeed, a fall in costs could also act as the spark needed to tempt a number of investors back to look at property in Cyprus.

Source: PropertyShowrooms.com

Agents Wanted – Med Life Club Village, Cyprus

admin — Fri, 27 May 2011 07:04:00 GMT

The Med Life Club Village is a newly released offplan project offering investors an exclusive opportunity to purchase in a highly desirable area of Cyprus, looking down over breathtaking coastline with stunning uninterrupted panoramic sea views.

Earn 5% commission on all sales

The developers are looking for agents to help sell this fantastic project and are offering a 5% commission on sales, with full support and help arranging inspection trips to view.

Key features of this unique development:

*10 mins from the beach

*45 mins from Paphos airport, 24 hour medical centre

*Superb range of facilities

*Secure environment

*Spa, sports, community activity

*Clubhouse, restaurant, pool bar, medical centre, library, buggy service, supermarket, cafe

Request more information about this development, or about becoming an agent: http://www.themovechannel.com/property/details/3961337/

15 major projects planned for Larnaca, Cyprus

Dan Johnson — Wed, 25 May 2011 10:47:00 GMT

The announcement that Larnaca is set to embark on new multi-million pound development plans spells good news for the future of Cyprus's tourism industry.

15 projects are planned to take place over the next five years including a 900 berth marina, renovation of the Piale Pashia coastal road, a pedestrian walkway between the popular tourist areas of Pyla and Voroklini, international standard 18 hole golf course, sports complex, open air amphitheatre and an environmental centre at the Salt Lake.

The Cypriot Tourism Board (comprising various interested organisations including the Chamber of Commerce and Cyprus Hotels Association) which announced the plans stated: "Although Larnaca has always offered plenty to both its residents and visitors, this is being further enhanced with a host of changes the town has recently undergone and will undergo. Big investments such as the new international airport and the creation of three town squares - amongst others - have been a welcome addition, but Larnaca has even bigger plans. Thanks to these changes, Larnaca's future has never looked brighter."

These exciting new plan combined with rising tourist numbers (Cyprus saw a 43% increase in arrivals in April 2011 compared to the previous year according to the government statistical service) further support the forecast that Aphrodite's island paradise may well be on the road to recovery.

Alexander Tomlinson, Directo of Cyprus property experts, Gem Invest, comments: "We are delighted to see that tourism levels are on the rise in Cyprus as more people flock to explore the kaleidoscopic blends of Western European and Middle Eastern cultures and to, of course, soak up some of the 340 days of sunshine!

"Undeniably Cyprus has been affected by the global economic downturn however things are turning around with increasing tourism sparking the property market back into life, especially in an around the popular town of Larnaca."

Located on the southern coast of Cyprus, Larnaca is the third largest city and home to the island's largest airport with direct flights to the UK. Already an established tourist destination, Larnaca has an established second home market with residents from all over Europe and indeed the world. Nearby Pyla, a quaint and historical village inhabited by both its original Greek and Turkish Cypriots, in particular is receiving interest from property buyers.

Offering a host of beaches, hotels, bars and restaurants and being only 10 minutes from the airport, new golf course at Terssefanou and Larnaca town centre, Pyla presents the ideal second home location. Developments such as the luxurious Aqua Residence are extremely popular with 1 bedroom apartments starting from €172,941 and a rental guarantee of 5.05% for two years.

As Tomlinson explains: "Our new unique contemporary and stylish development - Aqua Residence - is sure to be extremely popular with increasing numbers of tourists wanting a mixture of tradition and contemporary luxury. Aqua Residence will certainly set new standards in property development and combined with the many appeals of Cyprus itself such as its British based legal, accountancy and banking system, low 5% tax regime for foreign residents, 10% Corporation Tax and promises of increased visitor numbers, potential investors will be wanting to claim a piece of the pie and reap the rewards."

For more information about buying in Cyprus or indeed Aqua Residence please contact Gem Invest on +44 (0) 203 287 7440 or visit www.geminvest.net

Interested in property in Cyprus?
Browse our listings of apartments, houses and other properties for sale in Cyprus here: http://cyprus.themovechannel.com/property/all/

Cyprus sees increase in foreign property buyers

admin — Thu, 19 May 2011 07:11:00 GMT

Some 151 separate contracts were processed at the Cypriot Department of Land and Surveys by overseas buyers during April, it has been revealed.

The figure is up by 19 per cent on the same period last year and suggests that foreign investors are beginning to return to the once hard-hit Cypriot property market.

Indeed, the trend is not limited to a monthly increase. During the first quarter of 2011, total sales to overseas buyers increased by more than 16 per cent year-on-year.

Larnaca leads the way with sales up 43 per cent, followed by Nicosia at 21 per cent, Paphos with 12 per cent, Famagusta at ten per cent and finally Limassol with a four per cent increase.

Source: PropertyShowrooms.com

Spring has sprung for Cyprus tourism market

Sarah Kendell — Tue, 17 May 2011 11:48:00 GMT

The island nation of Cyprus reported a whopping 43% rise in tourist numbers last month compared with 2010 figures, revealing a surge in foreign interest that could revitalise its property market.

According to the government's statistical service, a total of 199,762 tourists visited Cyprus in April, compared to 139,658 in the same month last year. The huge increase in arrivals was "the largest monthly rise in some years", according to the government. Quarterly trends for the island's tourism looked similarly positive, with a 17% increase in tourist arrivals in the three months to April 2011.

A large contributor to Cyprus's tourism boom was a 29% jump in the amount of Britons visiting the island, a huge turnaround considering tourist arrivals from the UK have been in decline for the past three years. The extended holiday provided by the royal wedding, Easter and May Day bank holidays, combined with the introduction of a new direct London-Cyprus route by Greek carrier Aegean Air, may have seen an increased number of Britons rediscovering the nation during their spring vacation, which could certainly help aid the future rental income and home values of Cyprus property owners.

Cyprus's handy proximity to the booming economies of eastern Europe also aided its success in tourism - a huge 74% more Russian tourists visited the nation last month, while arrivals from Germany also saw a 30% increase. The growing strength of the rouble, which rose from 48 to 39 against the euro last month, should see Russian vacationers come to dominate tourist numbers in Europe this summer, and their apparent attraction to Cyprus should prove a lucrative factor indeed for buy to let owners on the island.

Interested in property in Cyprus?
Browse our listings of apartments, houses and other properties for sale in Cyprus here: http://cyprus.themovechannel.com/property/all/

Surge in foreigners buying property in Cyprus

admin — Mon, 16 May 2011 11:44:00 GMT

Sales of property to foreign buyers in Cyprus rose by 19 per cent in April thanks to new property laws and improving consumer confidence in the country. Sales to overseas buyers have risen across the first quarter of 2011 and the country’s property market finally looks set to emerge from a difficult period.

Sales to overseas buyers up 19 per cent in April 2011

Figures from the Cypriot Department of Land and Surveys show that a total of 151 contracts were officially deposited by overseas buyers in April 2011 compared to 127 in April 2010. The data showed that the resort of Famagusta fared particularly well with sales to foreign buyers during the month increasing by 175 per cent.

Russian and Chinese buyers snapping up property in Cyprus

Imperio Properties boss Yiannis Misirlis said that the island “is definitely experiencing a surge of Chinese and Russian buyers.” Mr Misirlis Said: “There has been a noticeable percentage increase in business from Russian and China,” encouraged “by our system that makes overseas property buyers eligible for a residential visa. The Russians have been aware of the rule for several years now and like to take advantage of it. The Chinese are coming in ever-greater numbers now.”

Source: Homesgofast.com

Property buyers plan flood of complaints

admin — Wed, 11 May 2011 06:07:00 GMT

Thousands of disgruntled property buyers without title deeds plan to flood the Commerce Ministry’s Consumer Protection Service (CPS) with complaints under the Unfair Commercial Practices law.

ACCORDING to Denis O’Hare from the Cyprus property Action Group (CPAG), buyers plan to demand en masse that their title deeds be immediately issued or they receive their money back with interest.

The claims will be filed in accordance with the EU Unfair Commercial Practices law, which is now effective in Cyprus. However knowledge of this law does not appear to be widespread. Two weeks ago the head of the Cyprus Consumers Association, Petros Markou, told the Cyprus Mail that he had never even heard of it.

The new joint action by property buyers is being organised by CPAG as just one part of a co-ordinated exercise involving UK MEPs at the EU, in order to force the government to act on the issue of withheld title deeds, a practice which is damaging to the island’s property market and image.

Source: Cyprus Property News

New Cyprus title deeds 'good news for everyone'

admin — Tue, 10 May 2011 07:34:00 GMT

Cyprus’ new title deed legislation can only be good for everyone, according to the managing director of developers Alpha Panareti, Andreas Ioannou.

Speaking exclusively to OPP, Ioannou said: “Our own clients are not affected at all by the title deed problem, as they are not held by the banks against any sort of loan to the company, but a great many UK buyers have been caught in a trap, where their builder used the land deeds as a security against loans for the property they were constructing. The new law will have an immediate impact on the poor publicity that has been generated for Cyprus over the situation, and I hope that the UK press will publicise it widely. It’s vital that buyers understand that, provided their Contract of Sale for a property has been properly registered at the Land Registry, they have the absolute right of ‘First Call’ on the property.

He added: “This is a great advance in client protection and I hope that it will re-assure future buyers that Cyprus is a good prospect for investment and a truly excellent location, both for holidays and for permanent retirement. The island has been through a difficult few years, with this problem and with the general global financial situation, but we can now move forward. Alpha Panareti is actively supporting all governmental efforts to tighten up the legislation in all areas surrounding property development, as well as the new move towards environmental awareness and the use of sustainable resources.’’

Another benefit to the purchaser is increased freedom in financing, according to Ioannou. He said: “The new law also gives much greater freedom to the purchaser. In the past, where a buyer took out a local mortgage loan, he could not easily change this to a different bank at a later date, if concerned about interest rates or better deals. Now, the borrower is entitled to manage and change his funding arrangements as he wishes, provided all outstanding debts are settled.”

Source: OOP

The 10 best places to retire overseas

admin — Mon, 09 May 2011 11:51:00 GMT

There are parts of the world where riding out the economic storm in retirement is going to be a lot more enjoyable than in Britain. Savills estate agents’ latest Global Residential Review reveals that an increasing number of those in their more prosperous fifties and sixties are looking for a foreign retirement bolt-hole where the living is easier than in Britain.

Here are 10 hot spots for anyone looking to buy and retire overseas:

America

Florida, really. On average the climate’s a lot warmer than Britain’s, so you’re guaranteed sunshine. Property prices have fallen by 30-70 per cent over the past four years.

Barbados

Britons are the biggest expat community in Barbados. Celebrity owners include Sirs Cliff Richard and Andrew Lloyd Webber, as well as Cilla Black and Simon Cowell. Estate agents Cluttons (www.cluttons.com) report a 70 per cent increase in sales in 2010, compared to 2009.

Cyprus

It’s not just the sunshine that makes the Greek part of Cyprus a haven for Britons. Spend more than 183 days on the island, in one financial year, and you become a tax resident, liable for as little as five per cent income tax.

France

Brits tend to opt for coastal properties (39 per cent), rural (37 per cent) and mountainous (19 per cent), which means the likes of Aquitaine, the Dordogne and the Languedoc remain popular. But the prospect of spending a year (or longer) in Provence, à la Peter Mayle, is as attractive as ever. Overall, prices in France are eight per cent down on their 2007 peak.

Italy

You won’t find stacks of cheap, soulless, little modern apartments in Tuscany and Umbria. But you will find lots of rural residences with character.

Prices are between 5-20 per cent lower than September 2008, so for £150,000 you can buy a pretty, stone-built Town house in the village of Collodi Castello.

Mauritius

Picture postcard beaches, and an expat-friendly Integrated Resort Scheme, whereby you, your spouse and offspring enjoy not only residency status, but freedom from inheritance and capital gains tax. This is provided you buy a top-end property such as at the (288-villa) Valraiche development next to two golf courses (with another planned). Prices start from £500,000 for a two-bedroom villa (www.cluttons.com)

South Africa

Cape Town is where most Brits gravitate, with its equable climate and fine beaches. Prices can be 50 per cent less than the most expensive parts of Europe, too.

Spain

Murcia, in south-east Spain, was the original star of Spanish golfing properties. It now has more links-Side homes for sale, at below-par prices. Property sales in Majorca are also up (by 14.5 per cent in 2010), as is the number of Monarch Airlines flights from Britain. You can buy an (as yet unbuilt) two-bedroom beachside villa at Cala Anguilla for £180,900 (www.taylorwimpeyspain.com).

Switzerland

“Switzerland was generally unaffected by the recession and the property market remained buoyant,” reports Hannah Coppersmith, managing director of Pure International (www.pureintl.com). The company organises free seminars to help with the laws on purchase in the cantons.

Turkey

During 2010, property sales to foreigners rose by 40 per cent on the year before, totalling £2.5 billion. Not quite as good as the 3 billion of the boom years (2006-08), but enough to persuade accountants Price Waterhouse Coopers to name Istanbul the best European city for investing in property during 2011.

Source: Telegraph Online

Cyprus moves to increase transparency for home buyers

Sarah Kendell — Thu, 05 May 2011 11:59:00 GMT

The Cypriot government has passed a new bill ensuring property buyers on the island will receive title deeds to their properties, regardless of whether the seller owes money on the home.

The lack of access of some international property buyers to the title deeds of their homes has caused much of the trouble currently occurring on the Cypriot real estate market with unscrupulous developers, who remortgage or default on properties that they then sell on to unwitting investors.

Instances of buyers who assumed they were the rightful owners of the properties, and who have paid a full deposit but not received a title deed, being forcibly evicted from their homes by police or the banks have been rife in the UK media particularly.

Chairman of the Cypriot parliament's House Legal Affairs Committee, Ionas Nicolau, said the new law would allow buyers more rights in situations where they might face eviction due to a fraudulent investment. "The new law will allow the buyer to have title deeds, independent of whether the seller owes money on that property", Nicolau said. "It is important as it will help reactivate the property market in Cyprus."

Although sales of property in Cyprus increased 5% over 2010, transactions have so far fallen 16% in the first quarter of 2011. Authorities hope the increased transparency, hopefully the first step in a concerted effort towards reforming the market, will result in a boost back to 2010 levels.

Disappointing drop in Cyprus real estate prices

admin — Thu, 28 Apr 2011 03:52:00 GMT

THERE was a ‘disappointing’ fall in property prices across the Island during the fourth quarter of 2010. Houses and apartment prices dropped by an average of 2.6% and 2.4% respectively according to the fifth issue of the RICS Cyprus property Price Index, which tracks property prices and rents across 46 locations.

Residential prices for both houses and flats fell by 2.6% and 2.4% respectively, with the biggest drop for houses taking place in Limassol (-4.8%) and for flats in Famagusta (-4.2%).

Values of commercial properties fell across all cities by an average of 2.5% for retail, 3.4% for offices, and 2.4% for warehouses.Year-on-year, prices dropped by 10.8% for apartments, 7.4% for houses, 7.0% for retail, 6.3% for office, and 4.8% for warehouses.

Across Cyprus, rental values for apartments fell by 5.5%, for houses 5.9%, retail units 3.8%, warehouses 4.4%, and offices 2.7%. Year-on-year, rents dropped by 7.2% for apartments, 11.8% for houses, 8.5% for retail, 3.0% for office, and 3.9% for warehouses.

Source: Cyprus Property News

"Don't buy Cyprus property" says Scottish MEP

admin — Tue, 26 Apr 2011 13:18:00 GMT

Scottish Member of the European Parliament Alyn Smith has warned people not to buy property in Cyprus after floods of his constituents complained at being stung by the title deeds fiasco in the country.

SNP member Smyth raised the issue in the European Parliament last year, and has also written to Cypriot President Demetris Christofias asking for his assistance in this matter. Smith also suggested the establishment of a foreign investor advice service, and/or an impartial ombudsman to assist buyers.

After receiving no response to his 2 letters some six months later, who could blame Smith for forming the opinion that Cyprus’ problems with dodgy property developers, agents and lawyers may well run deeper than has been realised, hence the warning to give the country’s property market a wide birth until the matter can be verifiably resolved.

Some 40,000 people have been affected by what has long been termed a crisis. Tens of thousands of Brits have bought property in Cyprus, and though it is now 2-3 years since the purchase was made for many of them, the majority of them have yet to receive their title deeds. Also known as Certificates of Registration of Immovable Property, title deeds are the most important document in proving ownership of a property. With so few buyers receiving them it is hardly surprising that the foreign sales segment of the Cypriot property market has come to a near-complete standstill.

Source: NovRealty.com

House prices down across the board

admin — Mon, 18 Apr 2011 09:05:00 GMT

THE ECONOMIC crisis contributed to a “disappointing” drop in Cypriot property prices in the last quarter of 2010, the fifth official survey of house prices revealed yesterday.

The Royal Institute of Chartered Surveyors’ (RICS) property index ending December 31, 2010, recorded prices drops in all categories (apartments, houses, retail, warehouse and office spaces) and districts bar one: warehouses in Famagusta.

Year-on-year, prices dropped by 10.8 per cent for apartments, 7.4 per cent for houses, 7.0 per cent for retail, 6.3 per cent for office, and 4.8 per cent for warehouses.

The report said: “The Property Price Index has recorded disappointing behaviour in property prices across Cyprus’ major urban areas, with prices and rents falling across all districts.”

Source: CyprusMail

Cyprus to lift European holiday home ownership restrictions

Sarah Kendell — Tue, 12 Apr 2011 10:30:00 GMT

Current laws in Cyprus restricting ownership of a holiday home by an EU national may soon be a thing of the past, with the European Commission issuing formal proceedings last week to force the island nation to open up its markets.

German press agency Deutsche Presse-Agentur reports that Brussels sent the Cypriot government a 'reasoned opinion', giving it two months to change its restrictive laws on EU holiday property ownership before it instituted legal proceedings and fines. Failure to do so could see the nation appear before the European Courts of Justice.

The nation was given five years since its EU accession in 2004 to change the laws, but the deadline has now lapsed and as its growing economy and plethora of new high-end resort developments makes it a growing source of interest to foreign property investors, EU nationals are chomping at the bit to get their own opportunity to purchase Cypriot real estate. Already a popular overseas property ownership destination with UK residents, an opening of the market to the EU, apart from being a necessity of its membership of the bloc, would undoubtedly see Cyprus' real estate industry receive a huge boost.

"Free movement of capital is at the heart of the single market and constitutes one of its four freedoms", said the Commission. "As Cyprus is still maintaining these restrictive measures, nationals from the EU are hampered in their efforts to acquire secondary homes in Cyprus. The European Commission has today asked Cyprus to respect EU rules that give nationals from the EU, as well as from Iceland, Norway and Liechtenstein, the right to buy a second home in Cyprus without restrictions."

Interested in property in Cyprus?
Browse our listings of apartments, houses and other property for sale in Cyprus here: http://cyprus.themovechannel.com/property/all/

Offices of a Cyprus developer bombed for a second time

admin — Thu, 07 Apr 2011 04:03:00 GMT

On Monday, a 50-year-old man from Limassol was issued a five-day remand by the Famagusta District Court in connection with the explosion. His 25-year-old son was released due to lack of evidence.

The pair allegedly agreed to sell to the director of the company two flats in Larnaca for €220,000 and received a deposit of €30,000. The director then decided to annul the agreement and asked for the deposit back, the court heard. The court heard that the father and son had insisted on full payment.

Both father and son deny any involvement with the bombing.

In November last year, an explosion shattered the company’s front window and caused minor damage to the entrance of the building. The total cost of the damage was estimated to be in the region of €1,000.

Last August, the Cyprus police announced that the company was under investigation in connection with eight complaints filed against it since 2007 – seven in Famagusta and one in Larnaca. The cases mainly concerned alleged forgery, obtaining money and property under false pretences and usurping property belonging to another person.

Source: Cyprus Property News

Property sales in Cyprus fall for ninth consecutive month

admin — Wed, 06 Apr 2011 11:58:00 GMT

Property sales in Cyprus fell for the ninth consecutive month during March and recorded the largest fall over the past 15 months, heightening fears that the crisis in the real estate sector may be worsening.

According to Land Registry figures published earlier today, the number of contracts of sale deposited at Land Registries throughout Cyprus in March was 625 compared with the 792 deposited in March last year; a fall of 21% and the worst monthly drop since October 2009.

Sales fell in all areas. Worst hit was Larnaca, where sales fell 52% followed by Famagusta (-46%), Paphos (-24%), Nicosia (-10%) and Limassol (-8%). During the first quarter of 2011, property sales have fallen to 1,749 from 2,066 during the first quarter of 2010 (-15%) despite last year’s low base.

Source: Cyprus Property News

Cyprus investors evicted after developer default

admin — Fri, 01 Apr 2011 11:22:00 GMT

A group of British retirees have been evicted from their villas in the north of Cyprus after the developer remortgaged their homes without their knowledge and defaulted on the loan.

The elderly investors purchased the homes in 2004 for a total of £800,000. The following year, the developer they purchased the villas from allegedly handed the title deeds of all ten homes to the Akfinans Bank, using them to secure a £41,000 loan which he never repayed. He has since fled to Turkey.

The bank began attempting to reclaim the properties last year and successfully evicted two British families, bringing one of the properties to auction. Eviction of the remaining families began last week, with the bank attempting to break into the remaining owners' homes, change the locks and physically intimidate the residents.

"Akfinans is trying to convert a £41,600 loan into ownership of an entire site of ten houses, worth well over a million pounds", Richard Barclay, spokesperson for the residents, told the Cyprus Mail. "We have suffered a great injustice - we never took loans", said the residents in a joint statement.

Source: Cyprus Mail

Failed Cyprus investors protest at property show

admin — Mon, 14 Mar 2011 11:12:00 GMT

British property buyer Conor O’Dwyer staged a protest outside ‘A Place in the Sun Live’ overseas property exhibition at Earls Court accompanied by members of the Alpha Panareti Owners Group, in a move that could cause further damage to the Island’s beleaguered property industry.

O’Dwyer told Cyprus property News last week that he planned to protest outside the exhibition. He said that he would be raising awareness of the pitfalls of buying property in southern Cyprus and distributing leaflets warning people about the problems that he, and others, have encountered.

The thousands of visitor who flocked to the exhibition were greeted with placards reading ‘Shame on Cyprus’ and ‘Cyprus Island of fraud’ along with others naming a specific bank and property developer. Members from the Alpha Panareti Owners Group joined Mr O’Dwyer in his protest. Many of these believe that they have been mis-sold property and are taking advice from their lawyers on possible legal remedies.

Source: Cyprus property News

Aegean Air launches new London-Cyprus route

admin — Fri, 11 Mar 2011 11:05:00 GMT

Greece's Aegean Airlines (AGNr.AT) will launch flights from Cyprus to London Heathrow at the end of this month, providing more competition for cash-strapped local carrier Cyprus Airways.

Aegean will offer daily flights to Heathrow from March 27, and plans to add and increase the frequency of flights from Cyprus to Greek destinations, Aegean's vice chairman Eftyhios Vassilakis said. "We believe the London market to Cyprus has the potential to grow," Vassilakis told journalists in Nicosia.

With an enhancement of connections to Greece, the company is meeting about 55 percent of needs of Cyprus's domestic market, he said.

Three Aegean aircraft will be based on the island, Vassilakis said. Cyprus Airways and British Airways BA.L run daily flights from Larnaca, the island's main air terminal, to London Heathrow. Low cost carriers Monarch and easyJet fly to other London airports.

Source: Reuters

European property market picking up, says RICS report

admin — Wed, 02 Mar 2011 12:54:00 GMT

The majority of Europe’s residential property markets are undergoing recovery, though some are in dire straits still, while others are positively booming, according to a new report.

Hot north, cold south is the simple geographic description of Europe’s housing markets with the Nordic countries, Germany and its southern neighbours, France and Belgium all experiencing rises in real house prices in 2010, the new European Housing Review 2011 from the Royal Institution of Chartered Surveyors shows. Ireland, Hungary and Cyprus experienced falls while Spain, Greece and Portugal saw moderate falls despite their economic difficulties. Prices were slightly down in the UK, Netherlands, Poland and Italy and the Baltic States were recovering from their major crashes.

Unlike previous housing market upswings, prices increases are leading other market indicators, such as transactions and house building but mortgage constraints are affecting many markets. But interest rates are low and there is little evidence of substantial mortgage debt deleveraging by households in countries with high levels of mortgage debt.

The report also says that house building is down all across Europe and is severely lagging recovery in most places. According to the report’s author, Michael Ball, Professor of Urban and Property Economics in the School of Real Estate and Planning, University of Reading, it does not look as though Europe as a whole is following the USA into many years of housing market mire.

‘But, all the same, there are worrying aspects to the recovery. Perhaps that is unsurprising given the scale of the financial crisis and the more European specific sovereign wealth crisis that followed. Nevertheless, there are several distinctive issues over and above the normal uncertainties that surround the initial phase of an upturn,’ he said.

Source: Property Wire

1 in 6 European homes are overcrowded

admin — Thu, 24 Feb 2011 12:37:00 GMT

One in six Europeans is forced to live in an overcrowded home, ranging from one percent of the population in Cyprus to 58 percent in Latvia, according to the EU's statistics agency, Eurostat.

The report, published on Wednesday (23 February) and based on 2009 data, also shows a considerable variation between member states regarding problems of damp, darkness or the availability of sanitary equipment in European homes.

Many Europeans also said they suffered from a leaking roof (Photo: psyberartist) * Print * Comment article "Housing deprivation is one of the most extreme examples of poverty and social exclusion in society today," declares the document. "Although access to affordable accommodation is a fundamental need and right, guaranteeing this right still represents a significant challenge in several member states."

Eurostat defines a person as living in an overcrowded home if the building does not contain one room per individual. One room per couple or two same-sex children is also considered acceptable.

At the lower end of the scale in 2009 were Cyprus with one percent of the population living in overcrowded dwellings, two percent in the Netherlands, three percent in Spain and four percent in Ireland, Belgium and Malta. At the other end, 58 percent of Latvian citizens were estimated to suffer from overcrowded homes, 55 percent in Romania and Hungary, 49 percent in Poland and Lithuania and 47 percent in Bulgaria, all former Communist countries which joined the EU in 2004 or later.

Source: EU Observer

Cyprus lifts EU property agent restrictions

admin — Thu, 17 Feb 2011 13:49:00 GMT

Estate agents from the European Union are free to establish themselves and exercise their activities in Cyprus, following Commission pressure to persuade the government to remove a law that restricted the activities on the island of professionals from other member states.

The European Commission had initiated infringement proceedings against Cyprus because of the law that was considered us unfair. The local regulations had laid down conditions for the recognition of the qualifications of professionals from other member states, who were also required to pass an examination on the Cypriot Law.

Agents not established in Cyprus could work on the island, but only in collaboration with a local agent. Finally, a firm operating as an estate agent could not engage in other activities, and its employees could work only for that firm.

A Commission announcement said that “with the new change, EU estate agents can now choose to perform their activities in Cyprus and thus exercise their right to freedom of movement as guaranteed by the European Treaties. This situation will also be to the benefit of all citizens, who will have the option of contacting an estate agent near to them in order to obtain information with a view to acquiring a property in Cyprus.”

Source: Financial Mirror

Lessons to be learned from Spanish property market

admin — Wed, 09 Feb 2011 11:03:00 GMT

The Housing Secretary in Spain has issued an all out appeal to Britons to return to the Spanish property sector - please! As we all know, the Spanish economy has been flailing, and one of the biggest causalities has been the construction industry. Buyers have been conspicuous by their absence – put off in part by stories about properties being illegally constructed and then demolished, as well as tales of corruption and nose-diving values of homes in Spain.

Now, in a bid to get Britons back in and buying in big numbers, Beatriz Corredor the Housing Secretary has issued a statement to reassure Britons who may feel that the Spanish property sector has got something of a crooked reputation. She wants Brits to feel confident in “the system” and “the transparency” now in place in Spain’s real estate industry, and to return and start investing again.

Well, if that’s the case then we think Northern Cyprus and Turkey could both learn some very important lessons from Spain if they want to protect their fragile property economies, and not alienate the one market of buyers that has, to date, remained loyal to each country in question. Spain all but ruined its property market because of greed – and if what we’ve been told by our readers is true, Northern Cyprus and Turkey are following in Spain’s unfortunate footsteps.

The property market in Spain boomed on the back of second home buyers from the likes of the UK. Britons bought in foreign sourced euros, injected them into the economy, and in theory got a lovely home on or near to the Mediterranean as a result. However, things then turned ugly for a number of reasons.

Source: Shelter Offshore

Cyprus tourism sees significant increase

admin — Tue, 08 Feb 2011 12:29:00 GMT

Tourism revenues in Cyprus rose 3.8 percent in 2010, official data showed on Monday, boosting confidence of an economic recovery in the EU member state. Revenue for January to December 2010 reached 1.54 billion euros ($2.1 billion) compared with 1.49 billion euros for 2009.

Income from tourism accounts for nearly 12 percent of gross domestic product of the holiday island. It is the first rise in income from tourism since 2007 when tourism yielded 1.85 billion euros, despite December's severe weather across Europe curtailing arrivals.

In December, tourists spent 40.9 million euros in Cyprus - 4.2 percent less than the 42.7 million euros they brought in to the Cypriot economy in December 2009. The recession-hit Irish were the biggest spenders at an average 153.2 euros per day, while the Danes were the most frugal, spending just 30.4 euros.

Source: The Independent

Cyprus property sales fall to 2-year low

admin — Mon, 07 Feb 2011 11:22:00 GMT

January 2011 saw property sales in Cyprus falling to a 2 year low. Industry watchers expect that the lack of sales will lead to further price reductions while developers believe that the negative climate will persist if no support measures are taken.

Demand has fallen in all of the seaside towns, while sales in Nicosia appear to be stabilizing. According to the Land Registry, the number of contracts of sale deposited at Land Registries throughout Cyprus during January was 522 compared with 570 in January 2010; a fall of 9%.

Sales fell in all the seaside towns: Larnaca (-21%), Limassol (-12%), Paphos (-11%) and Famagusta (-9%). Nicosia, which constitutes the largest part of the total demand, saw property sales increase by 3% to 174 from 169 in January 2010.

Source: Cyprus property News

Qatari-Cypriot development deal in jeopardy

Sarah Kendell — Thu, 20 Jan 2011 11:41:00 GMT

The Cypriot government yesterday denied that negotiations with Qatar on the multi-million euro investment project had collapsed and called instead for less "noise" on the matter.

Government spokesman Stefanos Stefanou said yesterday: "I want to make clear that there is no collapse (of negotiations) on the matter of Qatar. We are in the process of contacts and negotiations aiming to realise the Qatari investment."

The Cyprus Mail reported on Wednesday that the deal had run aground with Qatar looking to step away from a deal which according to a source close to the negotiations had seemed just around the corner.

The source said the two sides were close to agreement on the value of prime real estate sitting opposite the Hilton Hotel in Nicosia earmarked for development when Qatar sent a letter to the government last week, backtracking on previous evaluations.

Property sales rise in Cyprus

Sarah Kendell — Wed, 19 Jan 2011 12:37:00 GMT

The number of property transactions in Cyprus rose year-on-year by 5% in 2010, new figures have shown. A report by the Department of Lands and Surveys found that the total number of properties switching hands rose to 8,598, driven by a 14% rise in sales in Nicosia and a 10% increase in the city of Limassol.

Andreas Christophorides, managing director of Christophorides and Associates, told Bloomberg that a further recovery in the first half of this year was, however, "unlikely". He added: "The market may recover in the second half of 2011 but the process will be tentative."

A total of 1,593 homes in Cyprus were sold to foreigners in the first 10 months of 2010, according to a report in A Place in the Sun.

Cyprus: bargains to be had

Catherine Deshayes — Sun, 31 Oct 2010 21:45:00 GMT

Property prices in Cyprus are expected to fall for the remainder of 2010, Property Community has suggested...

According to official figures from the Cyprus Statistical Service, the number of transactions taking place in the country has been on a steady decline, with September posting falls of 13.2 per cent year-on-year.  

This reduction in sales comes despite falling prices, increased distressed property availability and other sales incentives being offered to buyers.  Indeed, experts claim that domestic economic troubles are putting people off buying and foreign property investors have disappeared from the market.  

As a result, the number of building permits being issued to developers has fallen, the news provider reports.  However, Cypriot government officials have revealed their plans to start bringing in foreign developers to help overcome this problem and hopefully reignite the market.  

The news may interest individuals looking to purchase property in Cyprus, with current low prices offering buyers the chance to secure a bargain.

Source: www.propertyshowrooms.com

Cyprus ‘ready' for property investors

Catherine Deshayes — Tue, 12 Oct 2010 07:05:00 GMT

Cyprus is fully prepared for any Brits wanting to purchase real estate in the country, those looking to find a home in Paphos or buy property in Famagusta will be pleased to know...

According to Pafilia Property, the infrastructure and community feel on offer make it the ideal destination to buy a home.

"It attracts everybody from the holiday home crowd to the retirees because it has the infrastructure," Maria McLaren, spokesperson for the company, said.

"Everything is geared up for anybody who wants to go to Cyprus and live there very happily. If you buy something near a village then you become a part of the local community

Ms McLaren added that developers have dropped their property prices by between ten and 20 per cent on the island due to oversupply.

And British buyers who act soon will be able to take advantage of the recent strengthening of sterling against the euro, with figures from the International Currency Exchange showing that pound has increased by four per cent in the past year.

Source: www.propertyshowrooms.com

Russian and Cypriot presidents discuss investment and tourism

Steph Engall — Thu, 07 Oct 2010 13:16:00 GMT

A surge of Russian investment and tourism in Cyprus led to a visit from President Dmitry Medvedev for the signing of agreements between the two governments...

It was the first visit by a Russian head of state and came amid intensified UN efforts to broker reunification of an island divided between the internationally recognised Greek Cypriot government and the breakaway Turkish Cypriot administration in the north.

The two governments are to sign some 15 agreements during the visit, covering tourism, health, investment, energy, trade and tax, official spokesmen said.

Cyprus is a popular destination for Russian capital, and Russian tourists have become the island's second-largest number of visitors behind those from former colonial power Britain.

Present most conspicuously in the banking, energy, financial services and property sectors, "Russia is an extremely important nation for the economy of the island," said Phidias Pilides, board chairman of the Cyprus Investment Promotion Agency.

Official figures show that investment in Russia through Cyprus over the past five years has totalled 52.18 billion dollars (37.54 billion euros), while Russian investment in Cyprus reached 15.96 billion dollars (12.37 billion euros). "Cyprus is effectively the offshore financial services centre for Russia," said Chris Weafer, chief strategist at Russia's UralSib investment bank.

Russians have invested heavily in the island's real estate sector."Today, 40 percent of property buyers are Russian, 40 percent Cypriot and 20 percent British," said estate agent Peter Christofi of Antonis Loizou and Associates.

Source: AFP

North Cyprus Developer is Apprentice Star

Steph Engall — Thu, 07 Oct 2010 10:45:00 GMT

With the overseas property market not what it was 2 years ago, one developer is seeking alternative employment, as Sir Alan Sugar's next Apprentice...

The new series of The Apprentice got underway last night and among the twelve candidates vying for a job with Sir Alan Sugar is North Cyprus property developer, Jamie Lester.

The son of a cab driver, Jamie left school without A-levels and worked as an estate agent before moving to the London office of Homes Abroad. Some 5 years ago, he took a gamble on the North Cyprus market, starting his own development company focusing on the emerging - but controversial - market.

Back in 2006, Lester said of his business: "I enjoy offering a good, quality service. Some of the properties we sell are perfect when we invest. There's nothing better than seeing a customer's smile when they're happy with an investment. It's especially satisfying when you've been with a property since the beginning, watching it undergo renovation is an amazing experience. Some places we go to are infested with rats and stinking. Six months later they are luxury apartments!"

Jamie's top 5 business tips are straight out of the Alan Sugar playbook:

1. Keep it simple. There is no point in complicating things just for the sake of it. Know what you're doing and know why you're doing it. Everything you do needs to reflect your aim, simple.

2. Be quick. Business is all about being the best but also the fastest. When you have an idea act on it because you can bet your bottom dollar somebody else will if you don't.

3. Keep your costs down. When some people make money they spend it. Material things are great but they can be gone in a second. To begin with it's important to invest all your money back into the business - think about the future!

4. Have a bottom line. Knowing where you stand is the most important thing. If you don't have a basic aim you'll get lost. Know what you're doing, know why you're doing it and keep to it.

5. If you have any employees, treat them well. Give them compliments, treat them...but also know when to put your foot down.

But it seems these tips didn't do enough to help his team, who last night failed to make the most amount of profit, though luckily for him, Jamie was not brought back into the boardroom to face the dreaded firing squad of Sir Alan Sugar, Nick Hewer and Karen Brady.

Watch the next installment of the new series on BBC1 at 9pm next Wednesday.

Sly slogans are enticing Cyprus buyers

Steph Engall — Mon, 04 Oct 2010 12:24:00 GMT

‘Guaranteed Title Deeds' are fooling buyers in efforts to promote sales in Cyprus...

News of the Title Deed scams hit the headlines and made potential buyers much more aware of the problems, a number of developers are advertising their properties with slogans like ‘Guaranteed Title Deeds' and ‘Title Deeds to be Delivered Shortly' in their efforts to entice buyers.

Do not be fooled by this advertising; there is no such thing as a ‘Guaranteed Title Deed' (unless the property you are thinking of buying already has one and there are no claims lodged against it at the Land Registry).

A Title Deed guarantee is a limited ‘insurance policy' from a bank (a bank guarantee) against which buyers may claim compensation if the developer fails to register the property in their name by a specified date. They do provide property buyers with an added degree of protection and making a claim against a Bank Guarantee should not result in buyers losing their property.

But this added degree of protection comes at a cost; somewhere between 1.5% and 2.0% per annum of the sum insured. So if you take a Bank Guarantee of £200,000 for a period of five years, it will cost you between £15,000 and £20,000 to insure for something that is yours as a right; the property's Title Deed.

Some developers refuse to give bank guarantees as they have to ‘lock' the sum insured with the bank for the duration of the guarantee. Furthermore it leaves them exposed in situations where delays in issuing Title Deeds are outside their control.

In some areas of the island, property developers agree to bear the costs of a Bank Guarantee for two years, although I suspect that its cost is factored into the selling price. In most areas of course it takes significantly longer than two years for Title Deeds to be issued.

Source: Cyprus property News

Cyprus’ new marina on course for completion

Steph Engall — Fri, 01 Oct 2010 12:54:00 GMT

It is hoped that 2012 will see the completion of Cyprus' new marina at Limassol...

The President of the Republic of Cyprus, Demetris Christofias laid the foundation stone of the new Limassol marina at a ceremony held earlier this month which was attended by the town's officials and other dignitaries.

Construction work on the Limassol Marina is already is under way and progressing rapidly and the special crane employed to dredge mud from the seabed has completed its work.

The marina project is one of the largest in Cyprus and aims to promote Cyprus position on the map as a quality tourist destination and should be ready to accept its first vessels in the autumn of 2012.

Despite the general slump in the property market, sales are reported to be doing well. The first units to be delivered in about 2 years time will be the nine blocks of apartments known as the Nerieds (sea nymphs). One bedroom apartments are selling for €450,000, two-bedroom apartments for €850,000 and the three bedroom apartments for €1 million.

At an estimated cost of €350 million, the marina will be able to accommodate all types of vessels from sailing yachts to mega yachts, ranging from 8 metres to 100 metres in length.

Source: Cyprus property News

U.N. hopeful of Cyprus deal to heal

Steph Engall — Thu, 30 Sep 2010 12:49:00 GMT

The United Nations expressed hope that a deal on the divided island of Cyprus is to be negotiated by the end of the year...

Alexander Downer, a former Australian foreign minister who took over as Cyprus special envoy in 2008, said he was convinced leaders of the two rival Greek and Turkish Cypriot communities wanted a deal, but that compromise was required from both sides in order to heal a decades-old conflict threatening Turkey's bid to join the EU.

"It would be good to get the bulk of the work done by the end of the year," Downer told Reuters in an interview. "Just in terms of the negotiations they can do it, whether they will I don't know. But they can do it."

While saying Tuesday that he hoped most work would be concluded this year, he said the U.N. had never laid out a specific timetable for the conclusion of the talks.

Discussions on relinking Cyprus as a federation is a convoluted muddle involving questions of power-sharing, the re-mapping of boundaries and how many of Cyprus's thousands of internally displaced can return to their homes.

Downer said good progress had been made on governance and power-sharing. Discussions were now focused on property. The U.N. is planning to prepare a report offering a "frank assessment" of where negotiations stand next month.

Source: Reuters

Property scam ties Cyprus with Greek criminal ring

Steph Engall — Thu, 30 Sep 2010 12:27:00 GMT

Evidence linking Cyprus to an allegedly active criminal ring in Greece has come to light...

According to reports from Greece, the ring includes judges, civil engineers and land registry employees who allegedly engaged in activities that cost the Greek state millions in lost earnings from lost tax.

The group is suspected of claiming properties that were due to be auctioned off by banks to recover debts. They succeeded in doing so by presenting forged papers showing they had legal rights on the property or claimed that they were also owed money and had first rights on the properties.

Suspicious court rulings have led the Greek authorities to believe there are judges involved as well, although it was not clear if the judges had been coerced or were in on the scam. The ring is thought to have created almost 200 companies that served as fronts, with two of those believed to have been registered in Cyprus.

Greek authorities have been working on the case for the past year, police spokesman Michalis Katsounotos commented: " I was informed that for a year now, the Greek police have been investigating information that a ring has been operating, involved in illegal property transactions, secret auctions and even suspicious court rulings," said Katsounotos.

What can be said is that this ring, in the frame of its illegal activities, seems to have created a number of offshore companies abroad and it has been mentioned that two such companies have been operating in Cyprus."

Source: Cyprus Mail

$6 billion freeze in a Cyprus court

Steph Engall — Wed, 29 Sep 2010 14:51:00 GMT

$6 billion worth of Russian assets have been frozen in a court in Cyprus...

The injunction on behalf of Russian member of parliament, Ashot Egiazaryan, includes holdings in the Moskva Hotel, a piece of prime real estate adjacent to the Kremlin which has been undergoing redevelopment in recent years.

Russian business daily Vedomosti said the plaintiff was seeking $2 billion in damages, claiming he had been wrongfully deprived of a stake in the hotel, though the court injunction gave no details of the underlying case.

The action was in Cyprus because it relates to investment holding companies which are registered on the island.

It also bars Kerimov from disposing shares he holds in Cyprus-based Wandle Holdings and Brainpedia Holdings, and in White Star LP from the Cayman Islands. Those companies are also barred from disposing of or mortgaging shares in Polyus Gold, the court documents said.

"The court orders and restricts the net value of the property and assets bound at an amount in excess of $500 million dollars," the verdict said:

Source: Cyprus Mail

Launch of new luxury Cyprus development

Steph Engall — Wed, 29 Sep 2010 14:38:00 GMT

Savills Select Resorts and Aphrodite Hills are teaming together to introduce the luxurious Cyprus real estate development, Alexander Heights...

The Overseas Real Estate launch event will be held on October 7th at the Westbury Gallery in Mayfair, London. The two iconic brands have a shared passion for creating exclusive living for affluent clients around the world.

Guests can join Select Resorts and Aphrodite Hills for champagne, cocktails & canapés at the launch of this exclusive and luxurious residential village from 6.30PM-9.00PM. Exclusive to attendees only the October event will offer fantastic special launch night offers to promote the very best in luxury real estate.

With a limited number of tickets still available, the public are advised to RSVP before the event reaches maximum capacity by phoning Select Resorts on 0845 505 6061.

"We're working with Aphrodite Hills to take luxury and Cyprus real estate to a new level," said Pauline Bonanni Select Resorts' Director. "The launch will show guests an expression of the incomparable Aphrodite Hills lifestyle making it the only place to live in Cyprus."

Savills Select Resorts has been recognised as a leader in the marketing of distinctive and luxury overseas properties, committed to high performance, professionalism, and quality service.

The Alexander Heights development takes the five star resort living at Aphrodite Hills to a whole new level with incomparable luxury, privacy and uninterrupted, horizon-wide Mediterranean views. With only 69 exceptional properties being developed, exclusivity is assured and whichever property buyers choose, they can be confident of the very highest standards of building and specification.

Source: PRWeb UK

Title deeds law delayed in Cyprus

Catherine Deshayes — Fri, 09 Jul 2010 12:33:00 GMT

Property owners and potential owners in Cyprus are facing a series of gloomy news as attempts to sort out the island's long running title deeds disputes are delayed and an expected recovery in the real estate market is failing to materialise...

The Cyprus government has been unsuccessful in its attempt to introduce the five bills designed to accelerate the issue of Title Deeds by the end of the parliamentary session so nothing will move forward now until after the summer recess.

Yiannos Lamaris, the House Interior Committee Chairman, said the bill is unlikely to go before parliament before October at the earliest. It is estimated that around 130,000 properties on the Mediterranean island do not have title deeds as they were either built illegally or are subject to second mortgages taken out by developers.

A year ago Interior Minister Neoclis Sylikiotis announced a series of amendments to the law to alleviate the problem but there is intense frustration that it is taking so long to action the new rules. Industry commentators believe that global headlines about the title deeds fiasco and stories about property owners having their dream homes demolished has contributed to a serious decline in the number of international buyers.

Critics also believe that the new laws will just gloss over the problem as they amount to nothing more than an amnesty for developers who have ignored planning laws and taken out mortgages on properties they have then sold to unsuspecting buyers. As a result buyers have no title deeds and risk losing their homes if the developer can't pay the mortgage or goes bust.

Although the latest figures show a slight improvement in the number of foreign buyers they are still way below norms. Data from the Lang Registry shows that overall sales were up 9.6% in the first half of this year compared with the same period in 2009.

But the picture is patchy. Sales are mostly increasing in Nicosia and Limassol but in Larnaca, a popular location with foreign buyers they have fallen by 3.5% and are down 0.7% in Paphos.

During the first six months of this year, 231 contracts in favour of foreign buyers were completed and although this is up 9.6% on last year it is 76% down on 2008 and 84% below the peak in 2007.

According to real estate insiders many potential British buyers are put off by the title deeds fiasco and refuse to consider a new property. There is also concern about the Cyprus government's plans to raise an additional €80 to €100 million in taxes from property owners in efforts to combat the recession.

On top of this ratings agency Moody's has downgraded the deposit and debt ratings of the Bank of Cyprus and the Marfin Popular Bank. Its says that this is partly due to the fact that ‘the country's real estate market, which is a significant component of the banks' loan books, remains a risk area with unclear growth prospects and weak demand'

Source: www.propertywire.com

‘Slight improvement' for Cyprus

Catherine Deshayes — Tue, 22 Jun 2010 15:34:00 GMT

The property market in Cyprus appears to be stabilising but economists are still expecting values to fall another 4% in 2010 on top of the 8% decline in 2009...

Although values and transactions and permits for building are slowly increasing there is still very much subdued interest from buyers on both a domestic and foreign level.

Many experts believe that without a new influx of foreign investment a real estate recovery is unlikely this year. One problem is that property is often too expensive for local buyers and foreigners are put off by headlines about the country's title deed problems which have still to be resolved.

The latest figures from the Department of Lands and Surveys show that 803 contracts of sale were deposited throughout Cyprus during May, the highest number since July 2009, but still way below peak and overall sales this year are still down by more than 60% on the numbers sold during the same period in 2008.

Although there are tentative signs of interest from foreign buyers with the number of contracts up 7% on 2009, this again is well below peak.

Nicosia has seen sales to non-Cypriots up by 92% this year and Famagusta has seen foreign sales up 10% but in other coastal towns, which are largely dependent on external demand, sales are down. Limassol has seen a 6% fall, in Larnaca sales are down by 4% and in Paphos they are down by 3% compared to last year.

Meanwhile figures from the Cyprus Statistical Service show that building permits were up 27% in March this year compared with the same month in 2009, a sign that developers are certainly looking to increase supply. The majority of these are for residential buildings.

In its June economic bulletin the Central Bank of Cyprus estimates that the price of residential property will fall by 4% in 2010 based on property valuations and other figures in April 2010.

It points out that although activity in the domestic property sector during the first four months of the year appeared to be stabilising, the general climate is restrained and interest being shown by both Cypriots and non-Cypriots in buying housing is still low.

Source: http://www.propertywire.com/

Cyprus property sales increase

Catherine Deshayes — Mon, 10 May 2010 08:58:00 GMT

Residential real estate sales in Cyprus are continuing to rise but at a slower pace, according to the latest official figures to be published...

The statistics from the Department of Lands and Surveys show that property sales were up 11% in April compared to the same time last year and up by 25% over the first four months of this year compared to last.

But they are well below March's figures which showed an astonishing 37% year on year growth in sales and 31% increase in for the first three months of 2010.

The figures also show a welcome increase in sales to foreign buyers. Cyprus has always relied on a large number of overseas investors many from Britain and Ireland but they have deserted the market during the global economic downturn and also been put off by the title deeds row which may be resolved soon.

But although more foreign buyers are investing sales are still down 60% compared with the peak in 2008.

Meanwhile protests about the title deeds situation have again hit the headlines. The Cyprus property Action group, which campaigns on behalf of thousands who still do not have title deeds to their homes, has had to close its website after a writ was issued by a property developer.

Denis O'Hare, the CPAG representative who owns the website, shut it down after receiving a writ from Armonia Estates Ltd and Pantelis Leptos claiming damages for libel in relation to a particular page on entitled ‘Leptos Buyers Action Group Demonstration'.

A statement from the group said; ‘In this situation it is difficult to imagine how Denis can continue to run CPAG and he and the current CPAG will of necessity cease to be able to assist buyers. This is due to the possibility that any entity in Cyprus could now use the same draconian measures to attack him and CPAG.

The statement said that others involved with CPAG are ‘absolutely incensed' and are looking into setting up a new limited liability company registered outside Cyprus with the ability to raise funding for advertising and campaigning. ‘The new strategy envisaged will be far more strident than has been seen previously in supporting the property rights of the buyers who have suffered the pitfalls of buying in Cyprus,' it concluded.

Source: www.propertywire.com

Cyprus prices continue to rise

Catherine Deshayes — Fri, 07 May 2010 11:35:00 GMT

Residential real estate sales in Cyprus are continuing to rise but at a slower pace, according to the latest official figures to be published...

Source: www.propertywire.com

Hope arrives for Cyprus market

Catherine Deshayes — Mon, 26 Apr 2010 11:52:00 GMT

Hope has emerged for the beleaguered property market in Cyprus with a huge injection of cash from the Middle East for a multi-million dollar luxury development...

Qatar and Cyprus have signed an agreement to build a $150 million luxury hotel, office and residential complex in the commercial centre of Nicosia, the island's capital.

Qatar's Emir Sheik Hamad bin Khalifa Al-Thani and Cyprus President Dimitris Christofias said the deal will create a joint venture in which the two countries will hold an equal stake in the 55,000 square meter complex that will also include retail shopping and residential quarters.

Construction crews are expected to break ground for the first phase of the complex, a five star hotel, by the end of the year, said Mohmmed Bin Ali Al Hedfa, Chief Executive Officer of Qatari Diar, Qatar's real estate investment company.

He said it will be completed within 30 months once construction begins but did not disclose the overall cost of the complex. He added that oil-rich Qatar decided to invest in Cyprus because the island was left relatively unscathed from the global economic crisis.

Cyprus Finance Minister Charilaos Stavrakis said the government will contribute the land on which the complex will be built. The land's value will be calculated by an international real estate appraiser.

The deal, the biggest direct investment ever, is a much needed boost for the Mediterranean island's real estate market. Although the latest figures show that property sales are edging upwards, foreign buyers are still staying away from Cyprus which was once one of the most popular destinations for overseas investors.

Sales climbed 37% in March compared with the same month in 2009, according to the figures from the Department of Lands and Surveys. And during the first three months of the year they were up 31%. But prices are still subdued.

The real estate industry in Cyprus is hoping that the long awaited changes to planning and title deed legislation will help restore investor confidence in the market.

The Council of Ministers last week approved six bills concerning reforms to the legal framework governing building permits and the issue of title deeds. An estimated 130,000 properties in Cyprus are currently without title deeds.

Meanwhile some property developers are developing new marketing strategies in the hope of attracting a more up-market overseas buyers. Luxury developments are to be aimed at wealthier buyers in the Middle East rather than bargain hunters from the UK and Ireland.

Developer Aristo confirmed it is launching a luxury range of properties likely to be marketed through agents in Saudi Arabia, Kuwait and Qatar. Its other properties are aimed at middle to low end buyers from the UK, Scandinavia and central Europe.

Source: www.propertywire.com

Cyprus: Famagusta 'bucking the trend'

Catherine Deshayes — Fri, 19 Mar 2010 10:55:00 GMT

The property market in Cyprus is still failing to attract foreign buyers with even price cuts of up to 30% being offered by some developers failing to result in sales to overseas customers.

The latest figures from the Department of Lands and Surveys show that 146 property contracts for foreign buyers were deposited last month compared with 160 a year ago. Foreign sales in February were down 9% on the same period in 2009.

Although property sales in Nicosia rose by 73%, it is unlikely that this was due to overseas investors as it is not an area favoured by expats or second home buyers.

Sales in Larnaca were down 29%, in Limassol they fell by 17%, and in Paphos, where some developers have been offering 30% discounts and other incentives, they were down by 41%.

The one place bucking the trend is Famagusta where sales rose 78% compared with a year ago, but this may be due to British expats who can no longer afford their mortgage repayments selling at a discount and individual investors who are picking up distressed property at rock bottom prices.

Keeping up with their mortgage repayments is a particular problem for those who took Swiss Franc mortgages with Cypriot banks, according to a report in the Cyprus property News. Attracted by low interest rates, they been hit very badly by exchange rates. At the start of 2007 a Pound would buy 2.39 Swiss Francs but today it will buy you around 1.61 Swiss Francs.

Buyers who took out mortgages with banks in Cyprus have also seen base rate rises and in some cases having to pay almost twice as much than they budgeted for when they bought their property.

It is also widely thought that continued inaction to solve the island's long running title deed saga has created negative feeling about the Cyprus property market.

The Interior Minister promised that new legislation to deal with the Title Deed problem would be ready by the end of 2008 but proposals have been heavily criticised and the problems is still unresolved.

A recent High Court ruling in London that at British couple must demolish their villa in the occupied area of Cyprus and give back the land to the original owner has confused many potential buyers and put them off buying property on the island.

Source: www.propertycommunity.com

Cyprus speculators ‘losing out'

Catherine Deshayes — Mon, 15 Mar 2010 13:49:00 GMT

Foreigners who invested in property on the divided island of Cyprus have found their houses were in many cases built by debt strapped developers.

NEWS about the property scams in Cyprus has been reported in GlobalPost, a Boston-based international news service. During the following video report Nicole Itano speaks to Hazel May.

Hazel and her husband Bob came to Cyprus on holiday and fell in love. Eight years ago they sold their house in the UK and bought one in Pyla. But their dream of retiring in the sun rapidly turned into a nightmare.

They soon discovered that their house had been built illegally; without the proper permits. Worse, the man who built it and sold it to them took out hundreds of thousands of Euros mortgages on the land with the Hellenic bank. He was jailed for fraud but has now been freed and is continuing to build illegally and defraud other unsuspecting buyers in the Pyla area.

Because Hazel & Bob's house was built without the proper permits, an order has been issued for its demolition. The bank has got a court order enabling them to sell Hazel and Bob's home to recover the developer's debt.

The Mays are trapped; she has cancer they want to sell the house and downsize. But with all the problems and the developer's outstanding debts, they cannot get a Title Deed.

Lakis Tofarides, president of the Cyprus land & Building Developers Association, blames buyers who have not done their homework. "If the property contract has been properly drawn and deposited with the Government, they (property buyers) would have nothing to worry about".

Perhaps Mr Tofarides could explain why things went so badly wrong in Hazel and Bob's case? The May's instructed a lawyer, Maria Souroullas, to act on their behalf. She drew up a contract that was signed by all parties and subsequently deposited it at the Land Registry. According to Mr Tofarides the Mays "would have nothing to worry about". Clearly Mr Tofarides is badly mistaken!

Source: www.news.cyprus-property-buyers.com

Cyprus: Price cuts 'failing'

Catherine Deshayes — Wed, 10 Mar 2010 09:13:00 GMT

Price cuts of up to 30 percent being offered by some developers are failing to attract foreign property buyers to Cyprus following negative publicity and government inaction.

The latest figures from the Department of Lands and Surveys show that 146 property contracts for foreign buyers were deposited last month compared with 160 a year ago. Foreign sales in February were down 9% on the same period in 2009.

Although property sales in Nicosia rose by 73%, it is unlikely that this was due to overseas investors as it is not an area favoured by expatriate second home buyers.

In all but one of the investment hotspots the decline is continuing, but at a slower rate than reported last month. Sales in Larnaca were down 29%, in Limassol they fell by 17%, and in Paphos (where some developers have been offering 30% discounts and other incentives) they were down by 41%.

Vulture funds

Sales in Famagusta rose 78% compared with a year ago, but this may be due to British expats who can no longer afford their mortgage repayments selling to ‘vulture funds' and individual investors who are picking up distressed property at rock bottom prices.

The Interior Minister promised that new legislation to deal with the Title Deed problem would be ready by the end of 2008. But this statement, like similar vacuous statements made by his predecessors, proved to be nothing more than hot air.

However, in July 2009 the Interior Minister proposed legislation designed to deal with the Title Deed problem and invited comments from interested parties. But the proposals were criticised by many, including the Cyprus Bar Association who rejected them saying that they would "lead us into a labyrinth without solving the problem". The government is continuing to work on legislation to resolve the problem, allegedly.

A recent High Court ruling in London that the Orams must demolish their villa in the occupied area of Cyprus and give back the land to the original owner has confused many potential buyers and put them off buying property on the Island.

www.news.cyprus-property-buyers.com

Cyprus dismay over ECHR property ruling

Catherine Deshayes — Tue, 09 Mar 2010 10:04:00 GMT

THE Cyprus government has expressed its deep disappointment over the European Court of Human Rights' decision to recognise the Immovable Property Commission (IPC).

Government spokesman Stefanos Stefanou said the ECHR decision was respected but wrong.

"The ECHR cannot refer a property owner to a remedy that is essentially the product of and born from an illegality," he said.

Speaking to reporters at a news conference yesterday morning Stefanou said even past findings could not support the ECHR's decision.

Despite the fact that the decision holds Turkey responsible for any violations of Greek Cypriot human rights, it had still raised a series of problems which would be closely evaluated by the government, added Stefanou.

All parties including AKEL, DISY, DIKO, EDEK, EVROKO and the Greens were equally bleak regarding Friday's decision.

House Legal Affairs Committee president and DISY vice president Ionas Nicolaou said the decision would have to be examined "carefully and calmly" and personal initiatives avoided "because maybe one of the reasons which led us here was the large number of cases [1,400] pending before the court".

Speaking on national radio former Attorney-general Alecos Markides said the ECHR decision was "very unfavourable" not only because it now obliged Greek Cypriot refugees to apply to the IPC in the occupied areas but because of the messages it sent out.

Source: www.cyprus-mail.com

Europe and the ‘unlucky horseshoe'

Catherine Deshayes — Mon, 08 Mar 2010 11:58:00 GMT

A significant number of European residential property markets are starting to recover with both sales and prices increasing, according to a new report the Royal Institution of Chartered Surveyors.

The worst performing markets of 2009 were Ireland, Spain, Greece, and most central and eastern European countries. The Baltic States were hit particularly hard with price falls ranging from 27% to 53% in 2009. Together, these countries form a geographic ‘unlucky horseshoe around the edges of Europe', according to reports author, Professor Michael Ball.

Over supply is likely to hold back recovery in some countries, most notably in Spain, Cyprus and Ireland where both unsold holiday homes and primary residences could bring these markets further problems, the report also points out.

According to Land Registry statistics, the number of property sale contracts deposited by non-Cypriots in 2009 was down 73% on the 2008 figure and down by 84% on the number deposited in 2007.

In addition to the well known problems blighting the Cyprus property market, this fall reflects the bursting holiday home bubble around the Mediterranean as a whole.

Towards the end of 2009, some buyers entered the market given the signs of some growth, but the flat or contracting economy, the risk of higher euro zone interest rates and the glut of properties on the market currently don't give much hope for 2010.

Speaking to the Cyprus Weekly, RICS Cyprus executive board member Pavlos Loizou MRICS, said: "In 2009, the residential market in Cyprus experienced price declines between 10-15% in Nicosia and the other cities, 25% to 30% in the tourist areas and between 10-20% in permanent residence areas. There are limited signs of recovery within 2010, and Cyprus will continue to experience a depressed market."

Source: http://www.rics.org/ehr.

Cyprus: Estate agents law changed

Catherine Deshayes — Fri, 05 Mar 2010 11:11:00 GMT

The Interior Ministry of Cyprus has submitted a new draft law to Parliament which is designed to open the doors to European estate agents wishing to practice in Cyprus.

The changes to the law result of an earlier EU inquiry into Cyprus' restrictive practices that penalised estate agents from other EU-member states wishing to practice on the Island.

As a result, the Commerce Ministry prepared a bill designed to bring the Island's existing estate agent's laws into line with the Acquis Communautaire with the assistance of the legal service and the Estate Agents Registration Council.

Changes to the existing law relate to the establishment of companies as real estate agents, the professional qualifications of real estate agents, the provision of services by real estate agents situated in other European Union member-states and the examination that EU real estate agents must take if they wish to settle in Cyprus.

The new law provides for all individuals who have graduated from a secondary school in a European Union member state and are actively involved in real estate who will now be able to register with the Estate Agents Registration Council providing they prove that they have a minimum of five years experience in the market.

A copy of the draft law has been sent to the European Commission.

Source: http://www.news.cyprus-property-buyers.com/

Cyprus: It's not all doom and gloom

Catherine Deshayes — Thu, 04 Mar 2010 13:25:00 GMT

New figures have show that the property investment climate in Cyprus is currently very positive indeed.

According to the Lands and Surveys Department figures issued yesterday, 704 contracts of sale were deposited at Land Registries throughout Cyprus during February 2010; an increase of nearly 30% on the 558 contract deposited during February 2009.

In the first two months of this year, 1274 contracts were deposited and their overall numbers are up 27% compared to last year.

However, although these figures are encouraging, they are still down by almost 60% on the 2008 figures and it is unclear whether the increase has been driven by domestic or foreign demand.

In efforts to stimulate sales developers in some areas have been offering discounts of up to 30% and other sales incentives, but these will soon run out according to Solomon Kourouklides, president of the Cyprus Real Estate Agents' Association.

Speaking to Stockwatch last month, Mr Kourouklides said that signs of an improvement were still confused. "The latest increase is attributable to the opportunities in the market. Many Cypriot individuals and investors have bought properties from non-Cypriots or Cypriots who cannot pay off their loans. But these opportunities will run out.

"If the economic parameters remain the same, we believe that the market will remain at the same level as in 2009, while there is a possibility of a slight deterioration".

www.news.cyprus-property-buyers.com

Northern Cyprus: Leaders to meet

Catherine Deshayes — Thu, 04 Mar 2010 13:06:00 GMT

Turkish Cypriot President Mehmet Ali Talat and Greek Cypriot leader Demetris Christofias are meeting today (Thursday) to discuss the "economy" topic under the extensive settlement talks.

The meeting, which is taking place at the residence of the UN SG's Special Representative to Cyprus, Taye Brook Zerihoun, is expected to last whole day. UN SG's Special Advisor on Cyprus, Alexander Downer, is also attending the meeting.

The leaders are also expected to make an overall assessment of the settlement talks.

The leaders will meet again on March 16 and March 30, and the settlement talks will be suspended for the presidential election in the Turkish Republic of Northern Cyprus (TRNC) on April 18.

Talat is seeking to be reelected for a second term in the upcoming elections against Premier Dervis Eroglu. The extensive talks aiming to find a lasting settlement to the Cyprus issue began on September 11, 2008.

TRNC and Turkey favor a bizonal and bicommunal, with two politically equal founding states, based on the UN parameters and earlier UN resolutions.

The Leaders - who are meeting for the 69th time under the talks - made certain progress over certain issues, but disagreement over issues like property, power sharing and treaty of guaranty still prevails.

Source: www.worldbulletin.net