News

Top of the Props: America surprise second choice for buyers

Ivan Radford — 02/11/2011 12:36:00

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

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 45 Lafone Street, Shad Thames, London, SE1 2LX.

Contact Dan Johnson on 0207 952 7650 for further information.

Residents scheme sees foreign interest in Cyprus shooting up

Sarah Kendell — 15/06/2011 10:49:00

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/

15 major projects planned for Larnaca, Cyprus

Dan Johnson — 25/05/2011 10:47:00

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/

Spring has sprung for Cyprus tourism market

Sarah Kendell — 17/05/2011 11:48:00

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/

Cyprus moves to increase transparency for home buyers

Sarah Kendell — 05/05/2011 11:59:00

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.

Draft law abolishes Cyprus' "Property Transfer Fees"

admin — 10/11/2011 07:22:00

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 — 08/11/2011 05:22:00

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 — 07/11/2011 08:10:00

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

Standard & Poor’s downgrades Cyprus’ credit rating

admin — 31/10/2011 07:28:00

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 — 24/10/2011 08:34:00

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 — 19/10/2011 08:27:00

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 — 17/10/2011 10:37:00

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 — 03/10/2011 09:01:00

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 — 26/09/2011 09:30:00

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 — 15/09/2011 07:12:00

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 — 31/08/2011 07:01:00

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 — 16/08/2011 06:37:00

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 — 26/07/2011 06:09:00

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 — 21/07/2011 06:52:00

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 — 19/07/2011 06:24:00

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 — 11/07/2011 11:40:00

Source: Cyprus Property News

Cyprus: UN hosts new unity talks in Geneva

admin — 08/07/2011 06:56:00

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 — 05/07/2011 08:33:00

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 — 28/06/2011 06:49:00

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 — 27/06/2011 11:55:00

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 — 24/06/2011 07:22:00

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

Foreign demand for Cyprus homes

admin — 09/06/2011 07:10:00

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 — 07/06/2011 07:42:00

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 — 07/06/2011 06:57:00

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 — 01/06/2011 07:25:00

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 — 27/05/2011 07:04:00

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/

Cyprus sees increase in foreign property buyers

admin — 19/05/2011 07:11:00

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

Surge in foreigners buying property in Cyprus

admin — 16/05/2011 11:44:00

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 — 11/05/2011 06:07:00

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 — 10/05/2011 07:34:00

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 — 09/05/2011 11:51:00

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

Disappointing drop in Cyprus real estate prices

admin — 28/04/2011 03:52:00

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 — 26/04/2011 13:18:00

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 — 18/04/2011 09:05:00

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

Offices of a Cyprus developer bombed for a second time

admin — 07/04/2011 04:03:00

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 — 06/04/2011 11:58:00

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 — 01/04/2011 11:22:00

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 — 14/03/2011 11:12:00

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 — 11/03/2011 11:05:00

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 — 02/03/2011 12:54:00

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 — 24/02/2011 12:37:00

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 — 17/02/2011 13:49:00

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 — 09/02/2011 11:03:00

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 — 08/02/2011 12:29:00

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 — 07/02/2011 11:22:00

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 — 20/01/2011 11:41:00

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 — 19/01/2011 12:37:00

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 — 31/10/2010 21:45:00

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 — 12/10/2010 07:05:00

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 — 07/10/2010 13:16:00

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

Sly slogans are enticing Cyprus buyers

Steph Engall — 04/10/2010 12:24:00

‘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 — 01/10/2010 12:54:00

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 — 30/09/2010 12:49:00

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 — 30/09/2010 12:27:00

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 — 29/09/2010 14:51:00

$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 — 29/09/2010 14:38:00

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 — 09/07/2010 12:33:00

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 — 22/06/2010 15:34:00

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 — 10/05/2010 08:58:00

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 — 07/05/2010 11:35:00

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 — 26/04/2010 11:52:00

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 — 19/03/2010 10:55:00

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 — 15/03/2010 13:49:00

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 — 10/03/2010 09:13:00

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 — 09/03/2010 10:04:00

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

Cyprus: Estate agents law changed

Catherine Deshayes — 05/03/2010 11:11:00

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 — 04/03/2010 13:25:00

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 — 04/03/2010 13:06:00

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

Water boost for Cyprus owners

Catherine Deshayes — 01/03/2010 10:52:00

The Cyprus government's Water Development Department (WDD) has announced the continuation of various subsidy schemes in its drive to promote water savings.

THERE is a €3,000 subsidy for the installation of a system to recycle grey water (water used in the bath, wash-basins and laundries, but not toilets or the kitchen sink). The recycled water could be used for the irrigation of gardens.

Besides households, the scheme applies to schools, sports grounds, gyms, hotels etc, which are connected to a public water supply network and a central sewage system.The subsidy for premises other than private houses covers 40% of the total cost to a maximum of €7,000.

Another subsidy scheme covers the drilling of a borehole for irrigation of gardens in private houses connected to a public water supply system. The amount of the subsidy is €700. There is a further €700 subsidy scheme for connecting the borehole to the toilet flush.

The WDD offers another scheme for the installation of a hot water circulation pump available for houses, offices, shops and foundations, worth €220.

Applications for all four schemes should reach the Water Development Department by December 6, 2010.

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

Foreigners still avoiding Cyprus

Catherine Deshayes — 17/02/2010 10:33:00

Foreign real estate buyers are not yet returning to the Cyprus property market after a year dominated by adverse headlines and falling prices...

The latest figures from the Department of Lands and Surveys shows that there were just 94 contracts of sale for foreign buyers last month compared with 131 a year ago. Overall sales in January were down 28% on the same period in 2009.

Although property sales in Nicosia bucked the trend, increasing by 125%, it is not a popular location for overseas investors. In all the areas favoured by expats, second home owners and foreign buyers, the sharp decline is continuing. Sales in Larnaca were down 46%, in Paphos they fell by 45%, and in Limassol they were down by 35%.

The increase in sales in Nicosia is probably due to Cypriots taking advantage of opportunities in the market, according to Solomon Kourouklides, President of the Cyprus real estate Agents' Association.

‘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,' he told StockWatch.

He does not believe that the real estate market in Cyprus is likely to improve much in 2010. ‘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,' he said.

Also Land Registry figures do not identify the type of property that was sold and so the increased figures include sales of retail, warehouse, office property and land as well as apartments and houses.

Some property developers have been offering discounts of up to 30% on a number of their completed and near-completed projects in attempts to attract buyers and British expatriates have been selling their homes at bottom prices and returning to the UK.

Although they have improved on last year, the January 2010 sales figures are some 65% below those for January 2008.

Continued adverse publicity about the title deeds scandal in Cyprus with tens of thousands of owners still without official proof that they own their homes and a High Court ruling in London that a British couple must demolish their villa in Northern Cyprus and give back the land to the original owner, has also put people off buying on the Mediterranean island.

Source: www.propertywire.com

N.Cyprus ruling affecting Brits

Catherine Deshayes — 25/01/2010 11:18:00

A ruling by the British Court of Appeal in the case of Apostolides vs Orams could have far reaching implications for Britons owning property in Northern Cyprus...

The case involves Meletis Apostolides, a Greek Cypriot, who claimed that David and Linda Orams of the UK had built a holiday home on land belonging to him at Lapithos.

The village is in the Turkish Republic of Northern Cyprus which was Greek land, prior to Turkish occupation in 1974.

Earlier in the proceedings, a south Nicosian court in the Greek Republic of Cyprus had ordered the Orams to demolish the property, return the land to Mr Apostolides and pay him compensation.

The judgment was then registered with the British High Court in London, under EU regulations.

This week's ruling against the Orams means that other Britons who have invested in property in Northern Cyprus could be ordered to hand it over to Greek Cypriots who were dispossessed by the Turkish invasion.

According to reports, around 5,000 Britons could be affected.

Source: www.homemove.co.uk

More misery for Cyprus?

Catherine Deshayes — 22/10/2009 11:04:00

Property owners in Cyprus without title deeds are facing more misery as two developers have gone bust potentially leaving them without legal rights to property they have paid for...

Last month developer Yiannis Liasides declared himself bankrupt leaving owners facing uncertainty abut their title deeds, it has been reported.

Now A&G Property Wise Development Limited has gone into liquidation. Buyers of homes from these developers face negotiating with the banks that have the title deeds.

It has emerged that A&G has been in difficulties for some time.

A liquidation order was first requested on behalf of debtors in May 2007 but was postponed twice at A&G's request. It eventually came through on September 16.

What happens to the properties will depend on whether the owner has lodged documents with the Land Registry to claim title or not.

Some property owners have been told by their banks, that their homes could be taken away in order to cover the debts.

The bad news comes at a time when buyers are deserting the Mediterranean island and prices are falling.

The latest figures from Cyprus' Lands and Surveys Department show that the number of properties sold to foreigners in the first nine months of 2009 fell by 76%.

Overall sales are down 52%

In September alone the number of properties sold to foreign buyers was down 70% compared with the same month in 2008 with just 173 transactions taking place.

Not only are British buyers not looking at the island's real estate market but many who have bought are selling up, especially those who bought to invest and hoped to make money out of what they thought would be a strong rental market.

Many are selling at a huge discount just to get out, according to one industry source.

‘Cyprus is not the place it was. Many expat owners are barely scraping a living and the fact that the title deed issue goes on and on despite a commitment from the Cyprus government to sort it out means that new owners are put off,' she said.

They have not been re-assured by a recent statement Interior Minister, Neoclis Sylikiotis that property investment is much safer in Cyprus than anywhere else.

Source: www.propertywire.com

September Top of the Props

Catherine Deshayes — 21/10/2009 10:47:00

France edged August's winner Spain into second place in September's Top of the Props chart - which provides a monthly pop chart snapshot of the most popular countries on the site - and the mighty USA fared well too, supporting talk of a possible recovery in the US property market - claiming third place...

France

The credit crunch has worried even the most hardened investors and that meant many were looking once more to traditionally ‘safer' investment options and established markets, such as France and Spain.

International mortgage firm Conti found that interest in French properties accounted for by far the most information requests so far this year, signaling that investors are still in love with the cosmopolitan country.

And it's not only those investors hunting out residential bargains either - international commercial property investors looking for prime assets are beginning to target France.

The country is fast emerging as the second-most popular market after the UK following a static first quarter as a result of the ongoing hangover from and continual effects of the economic crisis.

The French investment market is now on the move again, with investment levels doubling in the second quarter of this year, the biggest increase for that period in Europe.

There were three retail deals in that period valued at more than €100 million and the third quarter is looking promising too.

France has held up better than many other markets in Europe, with capital returns falling by six per cent last year, far less than in the UK, where they fell by a whopping 26 per cent. France is also a country that is known for low volatility when it comes to investing, even in its capital Paris.

Check out French properties for sale at http://france.themovechannel.com/

Cyprus

Cyprus claimed sixth place in September's chart and the country looks set to take an even higher footing in the near future with the opening of the new and improved Larnaka International airport- a real boon for the Cyprus tourist industry and economy.

Larnaka International Airport is due to open on 7^th November this year and the anticipated rise in tourist numbers and boost to the economy couldn't have come at a better time as the country tries to shrug off the lingering effects of the global economic crisis.

The multimillion pound international airport additions will open next month, following the largest construction project of its kind in the Republic.

Androulla Christodoulou, Head of Services of Civil Aviation at Larnaka International Airport, said, "The Airport will give the island's economy a new impetus amidst the economic crisis and will significantly help the economic and tourist development in general."

The Finance Minister of Cyprus has positive news too - he predicted that the country will see growth of 3.7 per cent by the end of this year as well as see full employment and lowered inflation.

Minster Charilaos Stavrakis also allayed fears that the Cypriot Government would try and hold down new development projects, noting that there are many large scale developments planned, including huge changes to infrastructure around Nicosia and of course Larnaka's airport.

Check out properties for sale in Cyprus at http://cyprus.themovechannel.com/

Other movers and shakers

Although the USA was pushed down from second place in September's Top of the Props chart, it still fared well and claimed third place. Portugal remained in the same position as in August, taking fourth place, and Turkey remained in the middle of the ranks in fifth place.

Cyprus moved up one place and took sixth place, pushing August's number six - Italy - into eighth place.

Lucky number seven was claimed by Egypt in September's chart, with Bulgaria and Greece rounding off the chart in ninth and tenth places respectively.

September's Top of the Props chart

Overall Enquiry Volume for September 2009

Rank	Country	Share	Change	Comment
1	France	13.74	Up 2	1 month in top spot
2	Spain	13.04	Down 1
3	USA	8.97	Down 1
4	Portugal	7.51	Non-mover
5	Turkey	5.92	Non-mover
6	Cyprus	4.37	Up 1
7	Egypt	4.15	Up 8	New to top 10!
8	Italy	3.74	Down 2
9	Bulgaria	3.2	Up 1
10	Greece	2.31	Down 1
11	Brazil	1.99	Down 3
12	UAE	1.5	Down 1
13	Australia	1.45	Up 6
14	Thailand	1.14	Down 2
15	New Zealand	0.97	Up 6
16	Dominican Republic	0.95	Up 12
17	Ukraine	0.92		Highest New Entry
18	Morocco	0.82	Down 5
19	Panama	0.66	Up 15
20	Croatia	0.66	Down 4
21	South Africa	0.63	Up 12
22	Austria	0.6	Non-mover
23	Cayman Islands	0.58	Up 19	Highest climber
24	Canada	0.58	Down 7
25	India	0.56	Up 14
26	Malaysia	0.41	Down 8
27	Argentina	0.34	Up 13
28	Sweden	0.29	Down 8
29	Bahamas	0.27	Down 3
30	Cape Verde	0.24	Down 1
31	Romania	0.22	Non-mover
32	Philippines	0.19	Down 8
33	St Lucia	0.19	Up 4
34	Tunisia	0.19	Up 2
35	Germany	0.17	Down 21	Biggest faller
36	Barbados	0.15	Down 9
37	Belize	0.15	Down 14
38	Sri Lanka	0.14	Down 6
39	Hungary	0.12	Down 9
40	Poland	0.1	Down 5

Picture by dafalias

Cyprus: An investment ‘paradise'

Catherine Deshayes — 02/09/2009 10:14:00

The Mediterranean island of Cyprus has been proposed as an ideal choice for those considering an investment in property overseas.

Investment International noted that buyers are increasingly being attracted to the country as reunification talks continue and travel and trade restrictions are relaxed.

According to the magazine, the north offers homes at up to 50 per cent cheaper than in the south, although buyers have benefited from increases of around 25 per cent in the last two years alone.

Further growth is expected as Cyprus is promoted internationally as an option for anyone seeking homes overseas, while golf courses and casinos may also contribute.

And the lifestyle benefits of moving there were emphasized by the news source, as it stated: "Cyprus is a paradise island of incomparable natural beauty, full of unique historical treasures."

Nearby Greece was recently highlighted as a popular retirement destination for Britons by Sofia Panayiotaki of the Greek National Tourism Organisation.

Spokesperson for Investment International stated: "Investors have seen impressive price rises of around 25 per cent over the past two years, boosted by those reacting to the increase in tourism."

Source: Halifax International

Angry over orgies

Catherine Deshayes — 23/07/2009 10:27:00

Cypriots have reacted with anger after it emerged that wild sex orgies involving tourists had taken place on ferries...

Photographs purporting to show the sexual escapades of groups of young tourists visiting the island's popular resort of Ayia Napa were printed in the Norwegian press, following similar claims involving British and Scandinavian holidaymakers three years ago.

Once a sleepy fishing village, Ayia Napa is popular with families for its pristine beaches but since 2000 has gained a reputation as a clubber's paradise, attracting hoardes of young partygoers.

The photographs were reportedly taken on board local ferries which offer night cruises off the coast of Cyprus.

"The photographs we see do not respect us at all. They show a bad image which is not the true image of Ayia Napa," said the town's mayor, Antonis Tsokkos.

Giorgos Economou, a police Spokesman, told Reuters that similar stories about such cruises surfaced every year in the foreign press.

"The boats are checked every day by the port police and no evidence has been found as yet to suggest such activities are going on.

"But we wouldn't be able stop them when they're in the middle of the open seas doing their business."

Source: www.telegraph.co.uk

Check those Title Deeds

Jude Buttle — 23/06/2009 11:01:00

A spate of unfortunate encounters with property title deeds has led property experts to issue a warning to unwary buyers...

British investors were urged to be thorough in their inspection of property title deeds when completing tansactions in order to avoid disappointment. Locations such as Cyprus, Montenegro, Morocco and even Spain could entail problems related to property title deeds, or lack thereof.

According to The Daily Telegraph, not researching title deeds before investing could be a significant error for potential property owners. Some properties in the locations mentioned could for example have no title deeds at all, or disputed deeds.

Kieran Kelleher, the Director of Savills in Croatia and Montenegro, said, "It takes only a few euros to obtain a title of a home in Croatia or Montenegro, then you translate it." If there is no title history, it is recommended that investors abandon the purchase.

According to Mr. Kelleher, some off-plan properties in these countries were sold as many as 15 times over without ever being built. Indeed, more than 80 per cent of developers never officially register their properties.

John Howell from the International Law Partnership reiterated the importance of investigating the title before purchasing foreign property. He believes that it is unnecessary to make investments with such complications.

Mr. Howell said, "In places where there are well-known title complications, like northern Cyprus, why buy? Or if you must, why not check if there are specific problems?"

Some investors however feel differently. Jeremy Muntus, a surveyor from Yorkshire, for example said: "It's up to politicians and Governments to sort out how the island operates. It's all part of the fun and games of owning in northern Cyprus."

Source: www.hotproperty.co.uk

Cyprus title deeds: follow up

Catherine Deshayes — 19/06/2009 10:08:00

Following our story on Tuesday regarding Cyprus title deeds, Nigel Howarth, Editor of Cyprus property News Magazine, has provided TheMoveChannel.com with further information for any individuals who have been affected...

"The Cyprus ‘Title Deed problem'and Government promises to resolve them, have been around for many years.

"In the 1980's the collapse of a property development company, A. Pieris estates, soured diplomatic relations between Cyprus and Kuwait because Kuwaitis who had bought property from the company lost their money. At that time the Cyprus Government promised new laws. However, new legislation to protect the interests of property buyers was not forthcoming.

"But the problems with Cyprus' property industry have gained prominence since the explosion in property sales a few years ago. Various Governments have promised to resolve the matter:

"In 2005, the Cyprus Government said it was going to plug loopholes in the law, introduce fines, and provide property buyers what it called ‘an arsenal of weapons against unscrupulous property developers.

"In 2007, the Government was going to look at providing greater security to homebuyers by enabling their Contracts of Sale to take precedence over the developers' mortgages.

"In mid 2008 the Interior Minister assured property buyers that newly proposed legislation to resolve problems in the property sector could be implemented by the end of the year.

"At the start of 2009, the Interior Ministry reaffirmed its assurances that it intended to introduce a Bill to address the Title Deed issue.

"In April, the Interior Minister qualified his earlier assurances by saying that the proposed bill will only apply to future cases.

"We believe that the new legislation being planned should be put before the House of Representatives later this year. However, this legislation appears to be no more than a building amnesty; effectively a system of fines for those who have built illegally enabling them to have their illegal structures regularised in order that Title Deeds may be issued.

"But this amnesty will do nothing for the thousands of property buyers who have been ‘duped' into buying property built on land that the developers have mortgaged.

"One thing is clear - protecting the buyer is not a priority for the Cyprus government, the Cyprus banks or the property developers. When a developer goes bankrupt, an individual who has bought property built on land that is mortgaged faces the risk of losing everything.

"The banks have the right to claim the collateral and property buyers will be left homeless and tens of thousands of pounds worse off," added Mr Howarth.

May Investment Property Watch

Catherine Deshayes — 04/06/2009 10:11:00

Shock newcomer Northern Cyprus nabbed the top spot on TheMoveChannel.com's May Investment Property watch chart, perhaps a reflection of the renewed efforts to allow direct flights between the country and UK airports. France and the USA followed in Cyprus' wake in the chart, which tracks the level of interest in certain properties and countries from visitors to the site...

Northern Cyprus

Moves to lift a ban on direct flights between UK airports and Northern Cyprus could have a huge impact on interest in investment in the country. Currently being challenged in the High Court, the ban has so far lasted 35 years, causing considerable inconvenience for travellers.

Leading the challenge is Cyprus Turkish Airlines, (CTA) which flies about 100,000 visitors from the UK to Northern Cyprus each year. Currently, CTA, together with all other airlines, must land in Turkey en route both to and from Northern Cyprus.

If the direct flights are approved, it will not only encourage international tourists and investors, but will also provide a boost for Turkish Cypriots and their companies who are currently restricted from travelling and conducting business with the EU and the rest of the world.

Traditionally, Cyprus has fallen under the radar of many international investors, due to the civil war and the subsequent division of the island.

Despite these issues now being 35 years old, a history of conflict is hardly going to entice investors, especially those thinking of injecting a large sun of money into an uncertain property market.

But now, a new dawn has broken, particularly in the northern part of the island. At the end of last year, a conference hosted by the Cyprus Turkish Investment Development Agency and the Cyprus Turkish Chamber of Commerce in the UK, was held to look at the business and financial potential of investing in Northern Cyprus.

It revealed that Northern Cyprus now offers some of the most competitive business and investment opportunities in Europe. Despite, or perhaps because of many years of trade restrictions, the country has been largely free from the mercurial currency movements and offers untapped opportunities for investment.

The cost of living in Northern Cyprus is substantially cheaper than those countries within the Eurozone and the chances of an agreement being reached between the Turkish Cypriots and Greek Cypriots looks ever more likely. Once this is reached, international interest in Northern Cyprus is expected to skyrocket.

The whole island already boasts a buoyant tourist sector, attracting more than 700,000 tourists a year with its ideal climate and golden beaches.

James Churchman of the Armarium Group, which is selling the new homes in Nicosia which attracted the most interest from visitors to the site last month, said, "There is a lot of talk about current market conditions and whether now is a good time to invest.

"This particular opportunity has been created by the Government itself and is the first time that private equity has been allowed to invest in Government backed projects.

"It has been packaged specifically for the pure investor amongst us and is ideal for clients that want to apply a greater degree of control over their capital with a fixed 36 month return," he added.

France

France has been in the top three most popular destinations for UK property buyers for years and two thirds of French property sold to foreigners is to British people.

Whilst property prices are relatively high, they are still around 30 per cent cheaper than in the UK, but the tax structure - which levies tax at far higher rates than in Britain - has traditionally put some people off.

But, President Sarkozy is now trying to change that - he has already introduced tax relief on mortgages, cut wealth and income taxes and has reduced the notoriously unpopular inheritance tax.

This may well have a dramatic impact on the French property market, both attracting more international investors and meaning French citizens have more money to play with.

If you are an expat living in France, why not book a place on the Expat Excellence Seminar, called ‘Working and Living in France.'

The event, due to be held in Paris on June 28^th 2009, is a one day seminar dedicated to improving the professional and cultural foothold of expatriates living in France.

It will teach you how to play the career game like a native and position yourself for success in the job market and allow you to gain valuable insight on the complex world of French corporations.

Check out the website for more information.

Other movers and shakers

The USA took third place in May's chart, followed by Madeira at number four. Brazil sneaked in to take fifth. Old favourite Italy took sixth place whilst the taste of sun and sea proved too much for some to resist - landing the Caribbean seventh place.

Turkey took ninth place whilst Australia finished off the chart in tenth place.

Table showing May's top investment properties

Rank	Property	Country	Company
1	New homes in Nicosia, Northern Cyprus	Cyprus	The Armarium Group
2	Domaine de Lavagnac, France	France	RealWorld International
3	The Metro Apartments	USA	Knight Knox International
4	Azulara Resort, Funchal	Madeira	Property Frontiers
5	Sol y Mar beach resort	Brazil	Liquid
6	Eucalyptus Beach Apartments, Calabria	Italy	Propertyindex.com
7	Barbados/Anguilla land	Caribbean	Global Development Group
8	Referral enquiry	n/a	Propertyindex.com
9	Istanbul apartments	Turkey	Castlewood Investment properties
10	Land for sale	Australia	Alithia Group

Picture of a traditional property in Nicosia by jurek.d

Cyprus title deeds under fire

Catherine Deshayes — 01/06/2009 10:30:00

Lord Jones of Cheltenham, a Liberal Democrat peer in the UK, has piled more misery on the Cypriot Government in the House of Lords, after posing a question relating to title deeds in the country...

He is pressing Nicosia for transparency and for clarification over the law governing title deeds, for those people investing in Cyprus property.

"What progress has been made on the discussions between the British High Commission in Cyprus and the Government of Cyprus, regarding the ability of United Kingdom citizens who have bought property in Cyprus to obtain title deeds, and the assurances made by the Government of Cyprus to the British High Commissioner that it would introduce a bill to address that issue?"

The British High Commissioner Peter Millet is now expecting to hold urgent talks with Interior Minister Neoclis Sylikiotis to clear up the matter.

Late last year, the Cypriot Interior Ministry told the British Government that they would introduce a bill to address the situation soon. And yet, six months later, no law has been introduced, leaving thousands of Brits who purchased property in Cyprus without the necessary title deeds.

Source: www.homesoverseas.co.uk/news

The living is easy in Larnaka

Catherine Deshayes — 27/05/2009 08:50:00

Proving that the credit crunch doesn't have to dampen the holiday spirit, super-budget hotel operator easyHotel is offering a special €15 (£13) introductory room rate to celebrate the launch of its latest hotel, easyHotel Larnaka...

Located just a five minute walk from the Phoinikoudes beach front in Cyprus, the 56 bedroom hotel is in prime position for travelers wanting to make the most of their stay - but without breaking the bank.

easyHotel Larnaka, which opened its doors on the 20th May, is the hotel group's first 'in the sun' property.

Anticipating that the average length of stay will be longer, customers will benefit from larger bedrooms than those offered in easyHotel's typical city destinations, as well as more storage space and in-room seating.

All the bedrooms are air-conditioned and come with en-suite shower rooms. In keeping with the easyHotel concept of value for money, services such as TV, internet access and extra towels will be available for a small extra charge to guests who require them.

As well as being in close proximity to the international airport, which is one of easyJet's four new routes from London Gatwick for summer 2009, easyHotel Larnaka has direct accessibility to the town's numerous cafes, tavernas, shops and bars. The hotel is also within walking distance of all the main Larnaka attraction points including the Medieval Fort, St. Lazarus Church, the Archaeological Museum and the ancient site of Kition.

Calum Russell, easyHotel.com Commercial Director says, "Despite these uncertain economic times, people still want to holiday abroad. easyHotel is always looking to provide customers with great value for money and we are delighted to be celebrating the opening of easyHotel Larnaka by offering double bedrooms from just £13 per night through until the middle of June. This is a fabulous opportunity for travelers looking to make their hard-earned holiday money go further."

Source: www.easyhotel.com

Direct flights for Northern Cyprus?

Catherine Deshayes — 21/05/2009 09:49:00

A ban on direct flights between UK airports and Northern Cyprus comes under challenge at the High Court today...

The ban has lasted 35 years and been criticised for causing "considerable inconvenience" for travellers.

Cyprus Turkish Airlines flies about 100,000 visitors from the UK to Northern Cyprus each year

The legal challenge is being brought by Cyprus Turkish Airlines (CTA), which flies about 100,000 visitors from the UK to Northern Cyprus each year, and its UK tour operator, CTA Holidays Limited.

They are seeking to overturn the UK Government's "unlawful and unjust" refusal to lift the ban.

They criticise the Government for saying that it is in favour of direct flights, but that they would be contrary to the 1944 Chicago Convention on International Civil Aviation.

Currently, CTA, together with all other airlines, must land in Turkey en route both to and from Northern Cyprus.

CTA argues this increases flight times, airfares and fuel emissions, but has "absolutely no operational justification".

Their lawyers will contend at the High Court in London that the Government has misunderstood the Chicago Convention and there is no justification under international law for banning direct flights.

They say it also unfairly restricts Turkish Cypriots and their companies wishing to travel and conduct business with the EU and the rest of the world.

Source: www.dailymail.co.uk

Expats threatened by Cyprus ruling

Catherine Deshayes — 30/04/2009 09:36:00

Thousands of expatriates who have property in Northern Cyprus could be affected by a European Court of Justice ruling that the European Union's courts should enforce Greek Cypriot legal verdicts...

The ECJ judgment, published yesterday, backed the efforts of a Greek Cypriot architect to reclaim land his family abandoned when the island was partitioned in 1974, and on which a British couple have since built a holiday house.

The fact that a Greek Cypriot judgment cannot practically be enforced in northern Cyprus, whose authorities are recognised only by Ankara, 'does not prevent the courts of another EU member state from declaring such judgments enforceable', the ECJ found.

Source: Financial Times

USA backs Cyprus issue

Catherine Deshayes — 06/04/2009 10:03:00

USA support the efforts for a solution in Cyprus, Secretary of State Hillary Clinton has assured Cyprus Foreign Minister Marcos Kyprianou during a half an hour meeting they held in Prague, on the sidelines of the EU-USA Summit...

Speaking after the meeting, Kyprianou said, "We talked mainly about the Cyprus problem. The USA expressed support to the ongoing process of direct negotiation, and to the aim of a bi-zonal, bi-communal federation in Cyprus", he said.

Kyprianou briefed Clinton about the latest developments in the direct negotiation process, the difficulties of the process, and the expectation from Turkey, which "has a crucial role to play".

According to an official announcement, Kyprianou and Clinton have agreed to find a date for a new meeting in Washington, in order to continue the discussion.

"We found out that there are many other basic issues to discuss, like the bilateral relations between USA and Cyprus and issues that Cyprus can play a positive role as an EU member state, such as the Middle East problem", he added.

Cyprus Foreign Minister finally stated that during the meeting with Clinton he had the opportunity to refer to the Greek and Greek Cypriot community living in the USA. This community is an important link between Cyprus and the US, and is looking for a close relation and cooperation between the Cyprus and the US Government, Kyprianou concluded.

Cyprus President Demetris Christofias and Turkish Cypriot leader Mehmet Ali Talat have been engaged in direct negotiations since September last year, with a view to reach a settlement of the question of Cyprus, divided since the Turkish invasion of the island in 1974.

Source: www.xak.com

Cyprus buyers in damages threat

Jaimie Kanwar — 27/02/2009 12:20:00

Brits with holiday homes in Northern Cyprus may be forced to pay damages to the original Greek Cypriot owners of the land, following a ruling by the European Court of Justice in Luxembourg...

The judgment, expected later this year, will conclude a case that began in 2005, when a Cypriot court ordered a British couple, Linda and David Orams, to demolish their villa to pay compensation to Meledis Apostolides - the Greek Cypriot legal owner of the land.

Like many other Britons, the Orams bought the land from Turkish Cypriots who took ownership illegally following the Turkish invasion of 1974, when an estimated 170,000 Greek Cypriots fled their homes.

The case was referred to the EU court after the Orams opposed the ruling. The Advocate General, whose opinion is usually followed, has backed the Greek Cypriots.

If this opinion is upheld, damages to the dispossessed population could be enforced against any assets owned elsewhere in the EU by non-Greek property owners.

Source: www.timesonline.co.uk

10 tips for investing in emerging property markets

Jaimie Kanwar — 27/02/2009 10:00:00

Overseas property can bring high capital returns, but the key is being able to identify the next property hotspot and ensure that returns are maximised.

To that end, here are 10 tips on how to successfully identify an emerging market

1. Research, research, research

Do not judge a place on face value. It is essential that buyers conduct full and thorough research into the markets they are planning on buying; how far it is from the airport? How close are the local shops, restaurants, the beach and hospitals?

2. Consult the experts

Purchasing in an emerging market can mean that there is a lack of information available regarding investing in the country. As such, it is essential that buyers consult those who specialise in investing in the region.

3. Planned EU membership

EU membership brings inward investment and the easing of restrictions on the movement of capital and trade. Many new EU states, such as Poland, have seen property prices soar following their joining.

4. Leisure facilities

Large scale facilities such as ski runs, golf courses, hotels, spas and diving centres, increase the demand for holiday homes and boosts property values. These facilities will also attract tourism, and as such rental yields will increase.

5. Government and private investment

Investment encourages improvements in the local infrastructure and amenities, bringing money into the area, strengthening the economy and pushing house prices upwards.

6. Up and coming events

Major events on the sporting calendar such as the Olympic Games or golf tournaments encourage development and regeneration and attract tourists to the area, boosting house prices.

7. The law

Keep abreast of legal issues surrounding foreigners' access to the housing market, as well as any changes to purchasing restrictions for foreign investors, this is particularly important in emerging markets, as the situation can change quickly.

8. Tax

Check the inheritance and capital gains taxes in the country you are purchasing in. It is extremely unlikely that taxation laws will be the same as in the UK. In some areas, such as North Cyprus, you may be exempt from inheritance tax, however, in others, buyers may have to pay tax on pensions, or even tax in both the UK and the country of purchase.

9. Arranging finance

In some emerging markets you may not be able to get a mortgage in the country of purchase and will have to get one in the UK. However, if your mortgage is in the local currency then you must consider the impact of fluctuations in exchange rates.

10. Read the contract

If you are given a contract in a foreign language then ask for a copy in English. Ensure that you read it carefully and are clear on everything, especially the deposit, completion date, what's included in the property price and whether there are any additional charges.

Dermot O'Kane, Director of Property International, offered the following guidance for emerging market hunters: "Identifying and investing in emerging markets requires a lot of market knowledge, particularly as in these ‘hotspots' property prices are governed more by the local buyer than by the overseas one.

"Never assume anything. The key to success in an emerging market is research; look into everything, from finance and taxation to local restaurants and flights.

"When armed with a full knowledge of the area, and you have established what type of property you are after, it is essential to act fast to keep ahead of the game and really capitalise on the country's status as an emerging hotspot."

To find exciting properties in emerging markets, visit our investment property portal: http://investment-property.themovechannel.com/

Picture: Greenwichmeantime.co.uk

Ten reasons to invest in North Cyprus

Jaimie Kanwar — 26/02/2009 09:59:00

North Cyprus has long been overlooked by investors, but in light of ongoing reunification talks, TMC offers 10 reasons why now could be an excellent time to buy in the North.

1. Reunification on the agenda

Last week, the Cyprus President, Demetris Christofias met Turkish Cypriot leader Mehmet Ali Talat to discuss upcoming reunification talks. The two community leaders reaffirmed their commitment to a bi-zonal federation. With the likelihood of reunification greater than ever, and the property market already strong, buying in North Cyprus now, before unification, will be extremely advantageous to property investors.

Should reunification happen, property prices will be given a substantial boost, as tourist levels are set to rise further, as the country opens up by way of direct flights into Ercan Airport in North Cyprus.

2. Affordable properties

North Cyprus provides investment opportunities which more than rival established European destinations. Investors will be able to secure a property at 50% less than South Cyprus and a third of the price of Spain, a definite plus in today’s market. Buyers who invest now will be able to capitalise on the current artificially deflated market, as a result of North Cyprus’ unusual yet stable political situation and can expect capital appreciation of 15-20% per annum over the next five years. Buyers can also take advantage of the favourable exchange rates of the Turkish Lira, in stark contrast to the strong euro.

3. Improved infrastructure

Since Turkish Cypriots voted in favour of the UN backed reunification of the country, North Cyprus has benefited from €400million economic aid for improving infrastructure. The government is also actively encouraging the development of the region as a fiscal and business hub.

4. Taxes

For those looking to retire to Cyprus, there are tax advantages. North Cyprus removed inheritance tax in 2006. Furthermore, every individual or household is exempt of Capital Gains Tax once in their lifetime on the sale of one property.

5. Tourist hotspot

North Cyprus which is more tranquil and traditional than the South, with long-beaches, hilltop castles and ancient sites, is set to benefit from a surge of tourists from 433,000 to 2million in the next five years, as steps are made to unify Cyprus and its attractions are realised. Famagusta Bay, which occupies most of the eastern coast of North Cyprus, offers long stretches of sand with watersports facilities already established. North Cyprus is also home to classical sites of Salamis, the Karpas Peninsula and Kyrenia’s Venetian fort and quay.

6. Investor confidence

Since the borders opened between the North and South, applications from foreigners to purchase property in the North have increased ten-foldas buyers look to secure properties for investment, as well as retirement and holiday homes.

7. Unspoilt beauty

While North Cyprus is experiencing a property boom, the island has retained the charm and beauty which attracts both tourists and homebuyers. The Turkish Cypriot government has strict planning and building regulations to restrict developments on, or too close to, the beach or in areas of outstanding natural beauty. High-rise hotels and apartments which dominate some European coastlines are strictly prohibited. Since May 2005, constructions higher than 170m above sea-level have not been permitted.

8. Five star luxury

Many developments in North Cyprus are being designed and built to an extremely high standard. There are a growing number of five star luxury hotel complexes across the region, such as the 2,500 bed Artemis Otel hotel. Additional planned complexes are attracting worldwide leading companies such as Hilton and Sheridan.

9. Climate

North Cyprus experiences 320 days sunshine per year, making it a popular location for sun-seeking tourists and people looking to move to a warmer climate.

10. Added ease for investors

Investors in North Cyprus will also benefit from an English legal system, English widely spoken throughout the county and left hand-side driving.

Dermot O’Kane, Director of Property International, observed: “North Cyprus has long been overlooked by investors, who have traditionally bought in the South of the island. The North has much more to offer, however. It has not experienced the over development which has spoilt much of the beauty of the South, and the North Cypriot government has learnt from this, putting restrictions on new developments in place to protect the areas of outstanding natural beauty.

“Not only does the region offer fantastic beaches, weather and beautiful scenery, but the cost of living is significantly lower than in the UK, and both property prices and rental yields are set to soar as further steps towards reunification of the island are made.”

For a step by step guide to buying property in Cyprus, please view our Cyprus Property Buying Guide

Investors eye Cyprus ‘party-town'

Jaimie Kanwar — 18/02/2009 09:26:00

Buyers considering Cyprus should look no further than its most famous coastal village, claims one company.

According to experts at The Overseas Guides Company, anyone wanting to buy property abroad should have has Famagusta high on their list, specifically Protaras, Paralimni, Cape Greko and, perhaps the most infamous, Ayia Napa.

A coastal village on the southeast of the island, Ayia Napa has less than 1000 inhabitants but during the summer months it sees the arrival of approximately 10,000 tourists and has built up a reputation as a wild party-town.

As such, Ayia Napa may not be a logical choice for those considering buying property in Cyprus, but that doesn't mean you should disregard the entire Famagusta region in your search.

Whereas Famagusta used to be all but closed down during the winter months, every year that passes sees more attractions, restaurants and villages staying open and busy throughout the year.

This is good news for people looking into buying property in Cyprus with the intention of renting it out, as the season in which they can potentially have tenants in Famagusta is growing year-on-year.

Kim Brown of The Overseas Guides Company explains: "This extended season, coupled with properties being available at prices far lower than areas such as Paphos, and a lower cost of living in general, combined with a great climate, friendly local community and beautiful scenery makes Famagusta in Cyprus a great consideration for anyone looking to purchase property abroad."

Europe rules the roost in new top 10

Jaimie Kanwar — 17/02/2009 10:35:00

Jet-to-Let magazine has revealed its top 10 countries of most interest to property investors in 2009...

In order to provide an up-to-date snapshot of investor intentions in 2009, Jet-to-Let magazine surveyed 500 new readers who recently subscribed to its free investment magazine.

The results, which provide an interesting comparison with a similar survey produced last year, show that investors continue to be interested in investing in property. Interest remains firm in some countries, has declined in others and there is a shift towards bargain properties in the United Kingdom and the United States.

The Jet-to-Let 2009 top 10 results are:

1. Cyprus
2. France
3. USA
4. United Arab Emirates
5. India
6. Spain
7. Italy
8. United Kingdom
9. Morocco
10. Greece and Turkey (joint 10th)

The Jet-to-Let 2008 top 10 survey results were:

1. Cyprus
2. France
3. Spain
4. Germany
5. USA
6. Morocco
7. Italy
8. United Arab Emirates
9. Turkey

Over 36% of investors said they wish to invest in foreign property in the next 12 months, with 27% keen to invest in the next 6 months.

Cyprus rules supreme

The number one preferred country for investors was Cyprus, which is unchanged from 2008, with France and the United States ranked second and third. There were three new entrants this year - India ranked at five, the United Kingdom ranked at eight and Greece in joint tenth place with Turkey.

Dominic Farrell, editor of Jet-to-Let magazine and author of the bestselling property investment book, The Jet to Let Bible, says he's not surprised that the United Kingdom had entered the top 10.

"There are presently fantastic bargains in the UK for investors with the foresight and courage to see beyond the current economic climate. This is particularly so if buyers are holding strong currencies such as the US dollar or Euro which can add an extra 20% in terms of value" he says.

"France and Spain will always be in the top ten for UK and Irish buyers, but the relegation of Spain to number six reflects the change in market conditions and an erosion of confidence in the Spanish market," Dominic explains.

Brazil and Germany dropped out of the 2009 top 10 league, after being featured last year.

Reaping the benefits

Summing up the current choices of property investors, Dominic says, "Given the current economic climate and the negative media coverage of property investment, this survey shows that investors can see beyond today and realise that property has few rivals in terms of medium to long-term prosperity and risk.

"Given a choice between equities or other financial instruments and property, I know where I'll continue to put my money. This is a moment of opportunity for investors and those who take action will reap the benefits in years to come.

"We will not always be in a recession and the economic policies being adopted now, will eventually bear fruit. The catalyst for a recovery will be a return to lending by banks around the world."

Source. www.jet2let.com

The attraction of Cyprus

Jaimie Kanwar — 13/02/2009 12:10:00

As the UK falls into recession and the economic downturn holds the world in its grip, is the love affair between Brits and Cyprus strong enough to survive...?

Cyprus is one holiday destination that Britons have enjoyed visiting for generations. The Mediterranean island certainly offers visitors a number of attractions, not to mention the warmer climate and plentiful beaches. And with proposals to construct 14 new golf courses on the island in place, it seems that reasons to head to Cyprus could be growing.

But Some commentators have suggested that Brighton and Llandudno may be preferred destinations to Lanarca and Ayia Napa this summer as consumers look to scrimp and save.

Paul Collins, property editor at BuyAssociation.co.uk, admitted that it is "difficult to predict" whether the tourism industry in Cyprus will be affected by the downturn, although he suggested that there are a number of factors that gives the island the edge over some of its major Mediterranean competitors.

Strong historical ties

Firstly, the history of the island with the British is strong, Mr Collins stated. "Cyprus has the advantage that it does have a very long history with people visiting from the UK and people living there from the UK," he noted.

"It has a very similar judicial system to English law and it has a lot of other things very similar to the UK; they drive on the left and a lot of the retail and commerce side of things are very similar to the UK as well," he said. But crucially the weather is "much better" than back in Blighty, he added, noting that it is one main reasons why people choose to holiday in Cyprus.

Furthermore, Mr Collins remarked that the similarities in Cypriot law to that of English law means buying a property in the country is "pretty straightforward". He advised overseas property buyers to seek expert professional legal help, but noted that the island benefits from having a "well-established system" in place.

Huge tourism numbers

Additionally, these comments can be backed up by hard facts. For instance, according to the Cyprus Tourist organisation, 1.3 million Brits visit the island each year.

And the Statistical Office of the European Communities has predicted that Cyprus will see the strongest growth in population out of all the EU countries by 2060. It said that the number of people living there in the next 50 years should increase by 66 per cent.

Thus, even though there may be no certainty over the future of any nation during the economic downturn, it seems that the sun is certainly shining favourably on Cyprus.

Source: www.assetz.co.uk

Cyprus tackles ‘the property issue’

Jaimie Kanwar — 10/02/2009 12:15:00

Fresh talks on Cyprus property appear to be progressing smoothly...

Talks last week between the Greek Cypriot and Turkish Cypriot leaders, aimed at reunifying the island of Cyprus and focused on property rights, were "substantive," the top United Nations envoy there reported.

Greek Cypriot leader Demetris Christofias and Turkish Cypriot leader Mehmet Ali Talat each voiced their views on the principles the other side has presented, Secretary-General Ban Ki-moon's Special Representative Tayé-Brook Zerihoun said after the meeting in Nicosia.

Constructive discussion

"They had a good round of substantive discussions on this issue and they have agreed to continue these discussions next week on the afternoon of 12 February," Mr. Zerihoun told the press.

In May 2007 the Cypriot leaders committed to a partnership that will comprise a Federal Government with a single international identity, as well as a Turkish Cypriot Constituent State and a Greek Cypriot Constituent State which will be of equal status.

Shot in the arm for Cyprus

Jaimie Kanwar — 09/02/2009 10:29:00

Cyprus has announced a huge cash injection for its tourism and construction sectors...

Following an extraordinary session of the Council of Ministers, President Demetris Christofias announced new measures to boost the Cyprus economy.

At an estimated cost of 300 million Euro, the measures are targeted at helping the ailing property construction and tourism sectors.

These measures include a new loan plan for low and middle income families the building of new refugee estates, projects for social care and the construction and repair of school buildings. The cost of these measures will be around 245 million Euro.

To help the tourist industry, the President announced measures totalling 51 million Euro. These include the abolition of the overnight stay fees that hoteliers pay to the local authorities, the lowering of aircraft landing charges, a reduction in the rate of VAT from 8% to 5% for overnight hotel accommodation and the implementation of a plan designed to strengthen local tourism.

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

Cyprus hits a hole-in-one

Jaimie Kanwar — 09/02/2009 10:17:00

A new Government initiative could mean an increase in Cyprus' Golf tourism industry...

In the face of much opposition, the cabinet has finally approved the creation of fourteen new golf courses in Cyprus, which will bring the total number on the island to seventeen. Although the decision was finalised at a cabinet meeting on Thursday, it was only announced yesterday.

But in light of the protests over water shortages, each golf course will be required to have its own desalination unit, which must be powered from renewable energy sources.

Stefanos Stefanou, spokesman for the Cyprus government, commented: "The actual decision was taken by the previous government, but it was taken for the purpose of strengthening the tourism product in Cyprus and boosting economic activity. And in accordance with the decision, no water supplies will be given over by the government to meet the needs of these facilities".

Those opposing so many golf courses say they will ruin the natural environment, and not only in relation to the water shortage issue. Each golf course will be accompanied by tourist units.

It is expected that courses will be built in the district of Limassol at Ayios Ambrosios, at Paramali and Fassouri, at Polis Chrysochous, in Paphos and Ammochostos-Larnaca.

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

State of the union

Catherine Deshayes — 21/01/2009 09:44:00

State owned properties in Cyprus could be made available to buy in an attempt to raise around £180 million in order to pay off debts it owes to the Social Security Fund...

The Cyprus Government hold a number of properties that are considered surplus to requirements and its sale will generate much need income.

However, there are fears that additional properties on the market will simply add to the existing oversupply of homes in Cyprus, culminating in further property price falls and hinder the country's ailing building industry.

Source: www.homesoverseas.co.uk/news

Bleak future for Cyprus?

Catherine Deshayes — 06/01/2009 10:44:00

The number of properties being sold in Cyprus is falling steeply with officials warning that the island's economy faces a bleak 2009...

The latest figures available from the Cyprus land Registry show that the number of property sale contracts transacted between January and November 2008 showed a 27.9 per cent year-on-year reduction, while contracts transacted in November showed a 60.5 per cent year-on-year decline.

Analysts say that the decline is unlikely to change during 2009 as local economic growth continues to slow.

And Central Bank Governor Athanasios Orphanides is warning that investors must be prepared for a worst-case scenario when it comes to the economy for 2009.

He said that adoption of the single currency had so far protected Cyprus against major effects from the international crisis. But the bank estimates that the economic growth rate will fall to two per cent in 2009, the lowest since 2003.

'We cannot overlook the fact that an open economy like ours cannot remain completely unaffected by the negative global developments,' he said.

'Because the length and depth of the international crisis is difficult to predict, the Government should be ready to take action if the worst scenarios materialise for the economy,' he added.

According to analyst Antonis Loizou the Cyprus property sector will experience a long period of recession. He pointed out the price of tourist properties have already fallen by as much as 20 per cent.

He said that property developers are halting new projects. 'You must be lunatic to build at right now since the banks are not lending and a significant number of properties remain unsold,' he said.

According to Stelios Platis, Managing Director of financial services group MAP S. Platis, investors are being more careful but those with funds are continuing to buy.

There is no doubt that people are very, very careful, and very, very skeptical about the future of the real estate sector, which means they don't invest in it,' he said.

But wealthy Cypriot buyers looking to purchase property on the cheap could help sustain the country's construction and property sectors.

He expects interest will be generated in four new marinas that the state is building to boost tourism several of which will require the construction of an artificial island between Limassol's new and old port.

Source: www.propertywire.com

Cyprus breaks top five

Catherine Deshayes — 05/01/2009 10:17:00

New research from Co-operative Travel has revealed that Larnaca, Cyprus has been polled in the Top 5 holiday destinations for Brits in 2009...

The company believes that a combination of factors is pushing UK holidaymakers towards more established markets across the world.

Derek Hatton, Director of Cyprus estate agency Morpheus Investments, said that this comes as no surprise to the company as it chose Larnaca and nearby Tersefanou and Kiti to sell a range of villas and townhouses to British buyers.

"Larnaca is served by several, reliable airlines that ferry British property buyers and holidaymakers to the area and this is why we decided that, along with the English-based law system and 340 days of sunshine per year, to sell property in the region.

"It is important that a location has a strong touristic appeal and offers Brits something more than just price growth. This is why many more British buyers are coming to Cyprus and have fallen out of love with some of the speculative emerging markets that sprung up in the past few years."

Morpheus Investments has started sales of its latest project, the Larnaca Golf and Country Club. Due to be built in the town of Tersefanou, the resort will comprise of an 18-hole championship golf course, over 500 residences, breaking down to 285 two to four bedroom villas, 211 one, two and three bedroom apartments and 40 ‘hotel-style' rooms in the complex.

Alongside this will be a clubhouse, a village square and purpose built function rooms and spa facilities.

Source: Morpheus Investments