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 32 years. The firm employs 55 members of staff across 7 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 35
May 2012

Cyprus Economy

• The HCIP(Harmonised Index of Consumer Prices) of Cystat showed a rise for fourth consecutive month in 2012 reaching the highest point in 2012 which is 120.10 units. According to CyStat, there was a rise of 0.985% compared to that in March 2012. The highest index categories regard to education, housing water gas and electricity, food and non alcoholic beverages and health category.
• According to Cystat, the Cyprus unemployment rate in April 2012 faced a reduction compared to that recorded in March 2012. Specifically, the unemployed people in April 2012 were 35.398 compared to 37.443 in March 2012. As Cystat stated, the reduction was due to the start of the summer season in coastal cities and many hotel, restaurant and entertainment units hired people for the short period of the next 4 months.

• On Thursday 17^th of May the Cyprus Council of Ministers decided for the Government to become underwriter of the rights issue of €1.8bln by Cyprus Popular Bank, in the sidelines of the recapitalization efforts. As they have announced the terms of the issue will be included in the Prospectus which will be filed with the Cyprus Securities and Exchange Commission.

Cyprus Property Market

• There is no ending in property sector slump as shown by the Land Registry reports for sales. Sales for property are facing high pressure with excess supply thus demand in extremely low figures. According to Land Registry latest reports, sales showed that plots in April 2012 fell to 461 against 542 in the corresponding month of 2011. However the in the first four months of 2012 total sales increased by 1%. Nicosia and Larnaca sales were dropped 13% (from 722 to 628) thus in the other towns the sales were going slightly up by 1%.
• Thousands of summer houses remain unsold due to a 10-year low hit by external demand. The main factors affecting the market is the lack of liquidation and strict mortgage policies imposed on banks keeping the market on low figures and the future unforeseeable. As Stockwatch stated, on the contrary, the number of properties for which deeds of sale with foreign buyers have been submitted dropped to 470 in the first four months of 2012 against 620 in the corresponding period of 2011 (-24.2%).
This decline is attributable to the difficult economic conditions in countries such as the UK.

Global Property Market & Economy

• The Euro Area annual Inflation rate was 2.6% in April 2012, down from 2.7% in March 2012. The inflation rate in April 2011 was 2.8% while monthly inflation in April 2012 was 0.5%. The lowest annual interest rates were recorded in Sweden (1%), Greece (1.5%) Ireland and Romania (both 1.9%). The highest annual rates were recorded in Hungary (5.6%) and Estonia (4.3%). The sectors and components with the highest annual rates were alcohol and tobacco (4.7%), transport (4.3%), housing (3.9%), while the lowest components were communications (-3.1%).
• The Euro Area External Trade surplus reached the amount of 8.6bn Euro in March 2012, according to Eurostat. Concerning the total trade of Member States, the largest surplus was observed in Germany (+27.8%bn euro), followed by the Netherlands (+7.2bn euro) and Ireland (+6.8bn euro). The United Kingdom (-23.7bn euro) had the largest deficit, followed by France (-15.6bn euro), Spain (-7.1bn euro) and Italy (-5.5bn euro).
•  According to Property Wire, Central London offices, retail and industrial units remain the only areas of the UK commercial property market recording a positive growth in values, according to the latest IPD monthly index. Overall, total return for April remained positive, at 0.2%, but over the last six months values have fallen by up to 6.5% in the regional shopping centres sector and the South West office market is down by 4.6%. Meanwhile, the largest independent study of commercial property tenancies has revealed that stop gap leases have driven tenancy lengths to a record low 4.8 years on average as landlords work in step with tenant requirements.
• Millions of home owners in the UK are facing sharp rises in mortgage rates as a result of the chaos in the Eurozone, according to the Bank of England. The monetary crisis in the Eurozone is driving up the cost of borrowing for high street banks in the UK and they are set to pass it on to the 11.2million mortgage holders in the country, as Property Wire states.

Land Registry

Source: www.imf.org data.worldbank.org www.e-squared.eu

English Articles of the Month

Cyprus & China – Real Estate Connection? 29/4/2012 VWith most economies in Europe not being healthy and with the prevailing approach by E.U. to keep cutting spending and increasing unemployment, Cyprus real estate demand from abroad is reducing in numbers notwithstanding the fact that prices are reducing and business opportunities are now more apparent. Cyprus business and Governmental bodies have eyed in addition to Russia and some other ex eastern block countries, China. Cypriot business visits and exhibition participations in China have taken place which brought up as an initial reaction the prevailing data.                                                              Read Article   Good news on delayed payments 22/4/2012 Various banks under pressure from the Government have reduced their 6% overcharge on delayed payment interests to around 2%-3% i.e. if ones loan bears an interest of 6-8% the delayed payments were charged another 6%, amounting to the total of 12%-13%, which now is reduced to 8%-10%. Either way it is still too much, but this is how the loan agreements were made. As if this is not enough, Cyprus High Court decision, as well as the House of Lords in the U.K., decided that it is not a matter whether this overcharge is a reasonable charge, but what the signed agreement says. Still it is a move towards the right direction.    Read Article   Objectionable Buyers 15/4/2012 Most sellers/buyer/developers in the process of concluding a sale, they are upbeat to succeed a sale/buy, but it appears that some buyers are taking advantage of the difficult times and limited sales and behave even subsequently to the sale quite unreasonably. We refer in this article to those particular buyers who come up with all sort of ideas, aiming to get a price reduction even after the sale and/or not to pay their common           Read Article

An open letter to Mrs Mavrou Minister of Interior	8/4/2012
This is a short letter to congratulate you on your new appointment as the new Minister of Interior. We had the chance to cooperate when you were Nicosia’s Mayor and you have our high appreciation both as a person and for the good work you have done for Nicosia. You have taken over a very difficult and wide range Ministry which deals with all sorts of unrelated matters, ranging from forest fires, immigration, asylum seekers, town planning, Lands Office, cabaret and gambling etc etc. A lot of sleepless nights await you dear Mrs Mavrou, we are afraid, but being the sort of person you are, we feel confident... Read Article

A distress economy - A vicious circle	1/4/2012
During these difficult times of increasing unemployment and lack of cash, everybody, including the Government, is trying to collect past dues and even the individuals are undertaking various unordinary procedures and even jobs to make ends meet. It is a “logical” extension of human nature in making ends meet, but the situation is escalating at an alarming rate. For the first time we note stealing of scarp metal (see U.K. report on the subject which is alarming) and stealing metal rubbish bins, aluminium items and especially articles with copper wires that are left unattended in building yards.  Read Article

Greek Articles of the Monthh

Καταστήματα και Ενοίκια	29/4/2012
Η οικονομική ύφεση και η επέκταση της στο εμπόριο λιανικής πώλησης, η αλλαγή νοοτροπίας ψωνίσματος με προτίμηση προς τα νέα εμπορικά κέντρα κλπ, έχουν επηρεάσει την ζήτηση των μεμονωμένων καταστημάτων ακόμη και εκείνων σε κεντρικούς εμπορικούς δρόμους, προκαλώντας την φυγή των ενοικιαστών/κατόχων τους. Άνκαι είναι δύσκολο να υπολογισθεί το ποσοστό των κενών καταστημάτων, εάν πάρουμε ως παράδειγμα την Λεωφόρο Μακαρίου στην Λευκωσία (Hilton-φώτα Debenhams), το ποσοστό ξεπερνά το 25%, ενώ στο πιο κεντρικό μέρος της Μακαρίου (Debenhams-Capital Centre)          ... Read Article

Πολιτικές Εξελίξεις στην Ελλάδα + Αγορά Ακινήτων Κύπρου	22/4/2012
Ουδέποτε με τις εμπειρίες μας αναμέναμε πως οι πολιτικές και οικονομικές εξελίξεις μιας χώρας θα μπορούσαν να έχουν τόσες καταστροφικές συνέπειες στην οικονομία μιας άλλης χώρας και ιδιαίτερα στον τομέα των ακινήτων. Η αγορά ακινήτων στην Κύπρο που μέχρι, πρόσφατα (2008) προ της ύφεσης, βασιζόταν κυρίως στην Βρετανική αγορά, είχε τα σκαμπανεβάσματα της στον τομέα των εξοχικών κατοικιών, λόγω της διαφοροποίησης κατά καιρούς της οικονομικής κατάστασης στην Βρετανία. Αυτά όμως τα σκαμπανεβάσματα δεν ήταν σε βαθμό που να την “πληγώσουν” σοβαρά, αλλά διαφοροποιούσαν την  ... Read Article

Σπορτ + Λεμεσός	15/4/2012
Επ’ ευκαιρίας της υπερχείλισης των φραγμάτων, επισκεφθήκαμε διάφορα φράγματα και αναρωτηθήκαμε πως θα μπορούσε η Λεμεσός να εξελιχθεί και σε ένα κέντρο αθλοπαιδιών για όλες τις ηλικίες. ...Read Article

Αυτοχρηματοδότηση Πωλητών + Αγοραστές	8/4/2012
Είναι δεδομένη η έλλειψη χρηματοδότησης από τους χρηματοδοτικούς οργανισμούς και η κάποια στροφή αγοραστών που επιθυμούν χρηματοδότηση στα συνεργατικά. Τα πλείστα όμως συνεργατικά δανείζουν τα ίδια τους τα μέλη μόνο, ενώ οι συνεργατικές τράπεζες έχουν περιορισμένη εμβέλεια, ιδιαίτερα όταν ο αγοραστής δεν μπορεί να υποθηκεύσει τίτλο ιδιοκτησίας (είτε εκείνο που αγοράζει είτε κάτι άλλο). Ταυτόχρονα υπάρχουν εκατοντάδες απούλητες μονάδες που είναι κενές και βρίσκονται στην φθορά του χρόνου. Τελευταίως προσέξαμε την διάθεση μονάδων ιδιαίτερα από επιχειρηματίες ανάπτυξης ...       Read Article

Σας Αναμένουν Δυσκολίες - Ελένη Μαύρου

1/4/2012

Σας συγχαίρουμε δια της παρούσης για τον διορισμό σας ως νέος Υπουργός Εσωτερικών και σας ευχόμεθα ειλικρινά κάθε επιτυχία σε ένα πολύ δύσκολο έργο που έχετε μπροστά σας. Ασφαλώς δεν είστε καινούργια σε θέσεις με δύσκολη αποστολή, αλλά εδώ στο Υπουργείο Εσωτερικών, πρόκειται για ένα Υπουργείο που ασχολείται με χίλια-δύο θέματα. Από την Πολεοδομία και Κτηματολόγιο, τις δασικές φωτιές, μετανάστες, επενδύσεις από το εξωτερικό, τα καμπαρέ, πλημμύρες και τόσα άλλα...                                        Read Article

Our News

Joint Venture
A new website «Living, Buing Property and Doing Business in Cyprus» is launched www.cyprusinformation.com to provide general information about Cyprus, with more emphasis for Real Estate, Tax and Legal matters. The website which is part of a joint venture of Antonis Loizou & Associates – Chartered Surveyors, KMPG Cyprus and law firm A. Neocleous, is available in English and will be translated within two months in Russian, Chinese and Arabic.

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