Company Profile

Antonis Loizou & Associates is a professional firm of Chartered Surveyors offering valuation, agency and project management services. The firm was set up in 1980 and is the largest and most comprehensive professional firm of Chartered Surveyors in Cyprus and the Eastern Mediterranean over the last 20 years. The firm employs 60 members of staff across 8 offices in Cyprus and Romania, and is one of the leading real estate advisors for corporations, finance houses, as well as the local government and individual members of the public.       About us

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Issue 20 & 21,
Nov. & Dec. 2010

The Cyprus property market has been affected by the global economic recession, which has affected demand considerably. In particular demand forthcoming from abroad has been reduced by around 70% and demand from locals by 50% from its pre-recession years (up to 2007). In particular the British market demand (which comprised the 60% of the foreign demand) has been drastically reduced, although the Russian market (20% of the foreign total) is still active, but for lower budgets. Resales by desperate existing foreign buyers in particular, offer substantial discounts in excess of 30%-40% from their 2008 levels and this has done a lot of “damage” and this is evident in the seaside towns, where the foreign demand and resales is concentrated. Please see our relevant analytical articles on the subject (in Greek and English).

We provide for your information the monthly sales report for the year 2010 as this is issued by the Governmental Lands Office. It seems that the overall demand has been increased by 7% over its 2009 counterpart and whereas Nicosia has a plus of 16%, Limassol a plus of 10%, Larnaca minus 5%, the Famagusta region minus 4% and Pafos town a plus 3%. Overall increase of Cyprus sales contracts 5% from 2009.

As it can be seen from the above, the market has a long way towards recovery, which is estimated to commence mid 2012.

Sales Contracts across Cyprus - year 2009/2010

RICS Cyprus Property Price Index - Q3 2010	11/01/2011
RICS Cyprus publsihed Q3 2010 of its property price index that monitors property prices and monthly rents across all districts and property types, namely apartments, houses, office, high street retail, and warehouses. Overall, the Index tracks property prices and rents across 46 locations. Download the Index: Q3 - 2010, Q2 - 2010, Q1 - 2010, Q4 - 2009

Central Bank Property Index	11/01/2011
ACCORDING to the Central Bank’s December Economic Bulletin, property prices fell by 1.8% during the first three quarters of 2010 compared to the 4.1% price fall they suffered in 2009. This is the first time that the results of the Real Estate Index prepared by the Central Bank, in collaboration with domestic monetary and financial institutions, have been published. The Index correlates with other trends in the housing market including the rate of change in the construction production index, the construction material price index and domestic sales of cement.                 Download the Bulletin (in Greek): pages 64-67  Full Bulletin

Cyprus Economy

• Cyprus’s government will allow banks to issue covered bonds in order to help banks drain cheaper liquidity from abroad. Government spokesman Stefanos Stefanou said, “The issue of covered bonds was jointly requested by the banks and the Central Bank of Cyprus, which may among other things contribute to the reduction of interest rates”. A relevant bill “will be submitted to the parliament”.
• Eurostat announced that the annual inflation in the Euro area for November is 1.9%, the same as October. For Cyprus it has decreased from 3.4% in August 2010 to 1.7% in November 2010.
• The number of registered unemployed people reached 25.021 at the end of November 2010, showing an increase of 20% (4.175 people) compared to the October and an increase of 19,8% (4.129 people) compared to November 2009.
• There has been an increase of 175% compared to 2009 in the number of Czech offshore companies in Cyprus, in 2010. In the past year 179 companies have bought out other companies, choosing Cyprus as their Headquarters, compared to only 65 companies in 2009. Czech press have characterized Cyprus, along with the Seychelles and British Virgin Islands as a Tax Heaven, due to the very low company tax. It is expected that in 2011 there will be an even bigger increase.

Cyprus Property Market

• The Cyprus branch of the Royal Institution of Chartered Surveyors (RICS) is to track down refugees and owners of 6,000 properties in Famagusta to help conduct a thorough survey of the ghost town’s “fenced off area”, the results of which may be used to produce a current valuation in claims against Turkey. The joint project, conducted by RICS Cyprus in cooperation with the Famagusta Chamber of Commerce, should be concluded by next March, producing an average valuation for all properties in the UN-controlled part of the city, but not specific valuations for individual properties.
• French company Leroy Merlin is to open a DIY store at the start of 2012, following an agreement with Athienitis for the rental of a property, which Athienitis holds on Kalamon Avenue, for a period of 40 years. The land has an extent of 18.000 sqm and a building of 15,980 sqm will be erected, with two basement parking areas of a 580 car capacity. Construction works have began whilst the deal is estimated to be for €30-35 million.
• The Elea Golf Club of Elea Estate, a few short weeks since it’s opening has managed to claimed important international praise. The golf course designed by the former champion Nick Faldo has been ranked 9th among the Top 10 new international gold courses according to www.golf.com. Furthermore, Golf World Magazine has described it as «one of the most impressive new golf courses». The magazine gives praises to Cyprus describing it as a great year-round golf destination, only a four hour flight from the British Winter.
• Works for the Lakatamia Mall are set to commence at the start of 2011. The Athienites Group will erect the the Mall in the Lakatamia – Anthoupoli area of Nicosia. The development will incorporate a large number of retail units, a super market, a Cineplex, restaurant facilities, a play area and 1.700 car parking spaces. The Mall wil have an area of circa 82.000 sqm and will be the largest in Cyprus. Works are expected to complete at the start of 2013.
• Pafilia has signed an important deal with Dorchester Estates for the promotion of Cyprus real estate in Saudi Arabia. Foreign press has talked about the potential of asset appreciation of Cyprus Real Estate but also the possibility for all Saudis who invest in Cyprus to apply for residency.
• The Cyprus Land and Building Developers Association has created their own website (www.lbda.com.cy) which, has annonuncements, views and opinions of the Associations on maters regarding the real estate market in Cyprus. More importantly there is a full members list.

Global Property Market

• UK house prices ended the year barely higher than they started, according to the latest survey from the Nationwide building society.
• Unemployment in the UK increased by 35,000 in the three months to October to 2.5 million, the Office for National Statistics (ONS) has said. It is the first time that the jobless measure has risen for six months. The surprise increase was driven by public sector job losses, and pushed the unemployment rate up to 7.9%.
• Estonia has become the 17th member of the eurozone - the first ex-Soviet state to adopt the EU single currency. Despite market pressure on the eurozone and the Greek and Irish bail-outs this year, polls suggested most Estonians wanted the euro. For many Estonians, 20 years after breaking away from the Soviet Union, the euro is proof that they have fully arrived in the West. Estonia joined the EU in 2004 - one of eight former Communist countries that did so, including its Baltic neighbours Latvia and Lithuania. Two other ex-Communist countries - Slovenia and Slovakia - are already in the eurozone.
• The European Central Bank (ECB) is to almost double the size of its cash reserves, giving it more funds to tackle eurozone financial problems. The ECB is to increase the reserves it holds to 10.8bn euros ($14.3bn; £9.1bn) from 5.8bn euros at present. It is requesting the cash from the 16 national central banks in the eurozone, and it is the first time it has asked them for such a cash injection.
• The World Bank has issued its first bond denominated in the Chinese currency, joining a small but fast-growing market. The Yuan-denominated bond is being issued to promote the use of the Chinese currency in international markets. China's stake in the World Bank, is set to increase and it could eventually see China as the third-largest stakeholder in the lender after the US and Japan.
• The Spanish government has had to offer investors higher returns in the latest auction of government debt. The yield on its 12-month bonds rose to 3.45%, up from 2.37% in a similar auction last month. The rising cost of borrowing reflects investors concern about the outlook for the Spanish economy and its banking sector in particular. The Spanish government raised just under 2.5bn euros (£2.1bn; $3.4bn) in total - below its 3bn euro target.

Our Articles of the month

We live in hope – 2011 26/12/2010 After long last the two political parties who govern the island, have agreed on some basic measures to be undertaken, in order to attempt to correct the route of the Cypriot economy. The measures are not harsh and although it affects our pockets, it is within affordable means, by all the strata of peoples’ income. The discussions have started and we have now the first strike by the civil servants unions (the highest paid employees in Cyprus with an income 1½-2 times that of the private sector) but, at least, with a majority MPs in the House, one hopes that the measures will be adopted. Basically the measures include the introduction for the ... Read Article   Who are our partners to be? 19/12/2010 You are aware of the negotiations that are taking place between the Cyprus and the Qatar Governments for the development in the form of a joint venture a prime 26.000 sq.mts. building plot, across the road of the Nicosia Hilton. We do hope that the ½ bil. Qatar deal goes ahead for the benefit of the Cyprus economy and of course for the benefit of the two venture parties. The road towards reaching an agreement is not easy however and bearing in mind the numerous negotiations that have taken place reaching a conclusion is not a 100% certain. In addition, if the Cyprus Government makes a compromise on the land price, this will be scrutinized by the opposing political parties, who are ...   Read Article   Xmas is Coming 12/12/2010 Our dear readers, with the Xmas festivities coming very soon, should we not have an increased ray of hope for a better real estate future? The answer is yes, as long as this hope does not depend on God, who, appears that he has “abandoned” us during these difficult times. Our local parish priest told us that he never experienced so many worshipers in the church over the last 10 years!! This is understandable since people with real estate (and other) problems turn to God for help as a last hope!! However they also turn to gambling and other not necessarily legal activities in the hope to have a way out, of the deadlock.                                       Read Article   Bad Publicity & Real Estate Sales 5/12/2010 We all know that the local real estate market is not doing well and it follows the European competitive markets in a downward trend. We, however, as Cyprus, have an additional problem, that of the self destruction. Yes, there are crooks all over the place (worldwide) banks which now, during the difficult times, get more unreasonably aggressive and demanding, the building amnesty which is aiming to help ease the situation on titles, has been halted at the House (no excuse at all) after 12 months etc etc. Yet when people have difficulties in selling their property, there is no opportunity missed not to publish negative  reports on Cyprus real ...     Read Article   A worrying path 28/11/2010 We have written repeatedly in the Greek press that the concentration of illegal foreign workers in central town places, is a dangerous development. Our 3 years and more recent articles, pointed this worrying situation with particular reference to the Pafos area, where ex-Pontiacs (Russian Greeks) are concentrated, for Larnaca town at the St. Lazaros church locality (where most Syrians, Iranians are concentrated) and Nicosia in the old city, where is the hub of Pakistanis and others. It seems that foreign workers who are here illegally (some politicians say that the illegal immigrant subject, is the policy of Turkey to cause the Cyprus Government trouble, since 70% of these immigrants come from Turkey and the occupied areas) ... Read Article   Living Abroad & living it? 21/11/2010 It is far from us to advise the foreign permanent residents, how to handle their everyday living in Cyprus, but us, all, at one time or another, lived for long periods of time in foreign countries. It is true that the younger one is, the more easy it is to adapt in “strange customs and behaviors”. It saddens us however to note that most foreign people in Cyprus do not make an effort to mingle with the locals, keeping to themselves and creating thus small clusters of foreign communities, some of which are quite large. British people are an example and especially those who live in Pafos and in “Little England” (Peyia).                                               Read Article   Buy Real Estate in Shares 14/11/2010 It is normal to own real estate in shares and this form of freehold ownership comes about mainly through inheritance and passing real estate down the line, thus the parent’s whole share is inherited in shares to their children ever. We must add here that registering real estate in shares is permitted only for Cypriots and E.U. nationals and not for others. So you might enter into a contract to buy real estate in shares, but transfer will not be allowed at Lands Office. The alternative to have real estate transferred in shares, as opposed to a “proper” whole share title, has increased considerably over the recent years and this eminates from the lack ... Read Article

Are we living Beyond our Means??	7/11/2010
The state of the economy affects the state of the property market, both directly (sales prices) and indirectly (difficult loans). Without being necessarily experts on the economy, we understand that the way out of the prevailing situation is to encourage development and business expansion, to add confidence to those daring investors, especially those involved in large projects and reduce bureaucracy. We will also add that we need some sort of “economy patriotism” by all of us, so the individual “sacrifice” large or small can benefit the whole country.           Read Article

Is the 10% Commission Back?	31/10/2010
We watch from time to time the t.v. series “Desperate Housewives”, but we watch with more eagerness the “desperate sales” that we are now experiencing in Cyprus, due to the global situation. We have repeated in the past, time and time again, that the estate agents cowboys (mainly foreign British Agents) who were seeking at the time and getting the 15% commission, were here to stay as long as the business (i.e. interest of British people for Cyprus) was active.ll sorts of stories were told to their potential clients, most of whom were unsuspecting people, without knowing that the 15% overcharge (plus 15% V.A.T.) was paid in effect ...       Read Article

Our News

Golf Course Study   Our Firm together with CBRE has prepared a valuation / feasibility report on the development of a golf course at Larnaca. The report is to be submitted to would be investors for the project.   UK UNIVERSITY   Our Firm has prepared a valuation/feasibility report on behalf of Cypriot Investors for the creation of a UK University Branch in Cyprus [Larnaca District]. The study which will be used for funding purposes, it will also form the basis of the cooperation between the UK University and the local investors.   Larnaca Municipality – Joint Ventures   The Firm has prepared a discussion paper and a feasibility report for two high worth real estate plots at Larnaca, which belongs to the local municipality. This is one of the very few joint ventures proposed deals between local Authorities and private enterprise. Discussions are ongoing.   Innovative Ideas for sale   Our report on fractional ownership has been well read by developers and others who are seeking alternative forms of real estate sale at reduced sales prices.   Larnaca: Open Discusion on Real Estate (November 2010)   Antonis Loizou & Associates organized an open discussion in Larnaca regarding the state of the real estate market. The presentation was attended by the mayor of Larnaca, Mr Andreas Moyseos, along with another 80 representatives from banks, finance houses, law and accounting firms, and academia. More Photos on Facebook   Agents Training Cource   Our Office carried out a training course of all its agents across Cyprus. The training involved an update as to the Cyprus economy and property market, and a review of the Cyprus tax system including capital gains, VAT, immovable property tax, etc. Antonis Loizou & Associates has 6 offices across Cyprus and employs a total of 15 agents. More Photos on facebook   Αμερικάνικο ενδιαφέρον για ακίνητα στην Κύπρο   Σε πρόσφατη επίσκεψη στην Κύπρο, εκπρόσωποι του Αμερικανικού Τηλεοπτικού σταθμού U.S.T.V. είχαν επαφές με επιχειρηματίες ανάπτυξης γης και επίσης με το Γραφείο Αντώνης Λοΐζου & Συνεργάτες Λτδ. Ο κ. Αντώνης Λοΐζου δήλωσε ότι η υπόθεση Κατάρ έχει μαθευτεί σε διάφορα οικονομικά φόρα και φαίνεται να υπάρχει τώρα διερευνητικό ενδιαφέρον εκ μέρους των Μέσων Ενημέρωσης των ΗΠΑ: Read More   Qatar Investment   The firm has been appointed by the Cyprus Government to carry out a valuation on a prime building plot of central Nicosia, having an extent of approximately 26.000 sq.mts. The Government has entered into an on principle agreement with the Qatari Diar for the development of the plot in the form of a joint venture. Qatar has appointed Messrs Colliers Intl. to act on their behalf. The valuations have been prepared and submitted and the Government/Qatari Diar has entered into negotiations in order to find a compromise on the land value. Negotiations are still going on both in Cyprus and Doha. Press reports indicate very large value difference, but both sides are optimistic for a deal (which comprises of approximately 55.000 sq.mts. development, comprising of shops, offices, residential and possibly a hotel) that will go through.

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Newsletter archive:
Issue 1 - April 2009 | Issue 2 - May 2009 | Issue 3 - June 2009 | Issue 4 - July 2009 | Issue 5 - August 2009
Issue 6 - September 2009 | Issue 7 - October 2009 | Issue 8 - November 2009 | Issue 9 - December 2009 | Issue 10 - January 2010 | Issue 11 - February 2010 | Issue 12 - March 2010 | Issue 13 & 14 - April & May 2010 | Issue 15 & 18 - June / September 2010 | Issue 19 - October 2010

Antonis Loizou & Associates
Head Office | 68A Kennedy Avenue | 1076 | Nicosia | Cyprus
Tel: +357 22 477 600 | Fax +357 22 428 681
www.aloizou.com.cy | www.aloizou.ro | www.aloizou.ru

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