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Cyprus Property News

Company Profile

Antonis Loizou & Associates is a professional firm of Chartered Surveyors offering valuation, estate 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 38
August 2012
Articles
Questions & Answers
News & Exhibitions

The Vicious Circle with the Chinese Investment

 

Larnaca old AirportThe long negotiations are being "frozen" regarding the prospective investment by Far Eastern Phoenix, which is interested to invest in the old Larnaca Airport. On a previous report by Far Eastern Phoenix, the company stated that they are willing to stop the negotiations regarding the investment. The Council of Ministers have appointed Mr Stelios Himonas, Permanent Secretary of the Ministry of Justice, to investigate possibly disciplinary offenses by Ambassador Mr Marios Ieronymides on the subject. The story continues... and the people are concerned what will the result be of this matter !!

Read Article

 

Triple 5 ... or Triple 0 again?

On the same level of negotiations (as Far Eastern Phoenix), it is the matter of Triple Five regarding the acquisition of the majority stake in Cyprus Airways Public Company, in order to boost sales and profits as well as gearing up the Cyprus Economy. A new and revised business plan has been submitted to Cyprus Government so that they come to negotiations with better and improved offers in order to save the company which has become a cancerous subject to Cyprus Economy. 

Read Article

 

 

Single House Development in Agricultural Areas

Mr Antonis Loizou has been invited to numerous interviews and media presence concerning the law definition for the construction of a single residence outside development limits. As Mr Loizou stated, to SporFM in Mrs Katerina Eliadi programme, that the directions and the law definition by the Ministry have no clear meaning and it is difficult to be applied due to the incomprehensible definition. The Minister of Internal Affairs, Eleni Mavrou, called Mr Loizou and assured him that it is true that the law definition is somehow misty and she will take care of the matter after the summer holidays. Mr Loizou also stated, in the CyBC programme of Paris Potamitis, that although the Ministry has assured him to be more cooperative on such matters (withdrawal of tourist rooms and building amnesty), it has been proved that the Ministry employee are not well trained to handle this subjects in order to help the people. Read Article

 

Actual Chinese Purchases or Wishful Thinking?

Actual Chinese Purchases or Wishful Thinking?Based on our experience it appears that there is some sort of interest for the low end house purchases (around € 300.000) but there is not the large demand that the Media and the Minister of Commerce are reporting. Our experience is that there is some initial interest but it is yet to be expressed in real cash buyers in numbers. It is early days and we have to wait and see.

Read Article

 

Fill it up, please !

Cyprus OilWe are experiencing an interest from oil/gas related companies which want to establish a base and headquarters in Cyprus in order to serve the expected oil/gas installations and services to the eastern Mediterranean. These companies which are providers of equipment and services to the business of gas and oil exploration are requiring industrial accommodation, office spaces and open storage space. This is big business, if it materialises, yet we have a problem of the size of the accommodation required. One party asked for a factory space of 20,000sqm and an open storage space of 30,000sqm, which are sizes that we dot have and it is difficult find so.

 

Cheating Consumers

The recent Office`s Article to the Greek Press "Staying in Cyprus" was well received by the organised tourist groups. Our Office exposed overcharging and cheating by some hotels and restaurants and focus also on the cheating of the airport taxi drives. An example of the above statement is that a bottle of Ayios Andronikos wine which has a supermarket price of  € 4,60 was charged € 50 in a Limassol Hotel, whereas a cheating airport taxi driver asked extra €5 in order to put the air conditioning on !

Cyprus Oil

 

4,60

 

€5,00

Cyprus Economy


• According to



 

Cyprus Property Market

• The RICS Cyprus Property Price Index the second quarter of 2012 was published earlier this month. It has recorded significant falls across Cyprus mayor urban areas. The recordings shoed that we have a falling of prices and rents across all districts. Nicosia and Limassol had the worst figures as they were the least affected markets up until June 2012. Quarter on quarter, residential prices for both houses and flats fell by 1.2%, and 2.0% respectively, with the biggest drop recorded in Limassol, which was 3.4% for apartments and 2.3% for houses. Values of retail properties fell by an average of of 3.0% whilst those of offices and warehouses fell by 2.1% and 3.2% respectively. According to Mr Pavlos Loizou, Member of the RICS Cyprus, a possible investment on property will a risky investment. He stated that according to the current conditions of the property market, the residential units as well as the commercial ones, are characterised as investments having high risk values, for the short and medium terms. This affected the potential buyers and investors (locals and foreigners) who are less interested now leading to a low volume of property sales.

Global Property Market & Economy

U.K. house prices fell in August for a second month as demand declined amid a “fragile” market, Hometrack Ltd. said. Values slipped 0.1 percent from July, when they also fell 0.1 percent, the London-based property-research company said in a report published on a Bloomberg article. A measure of demand fell for a third month, dropping 1.3 percent, while a gauge of supply rose 0.8 percent. Britain’s property market remains under pressure as the economy struggles to recover from a recession and the euro-area debt crisis drags on, undermining confidence and pushing up lending costs. Bank of England officials are assessing the impact of their new plan to boost credit as they mull whether to expand stimulus for the economy through quantitative easing.
Investors from London to Tokyo to Pittsburgh are plowing money back into Treasuries after the biggest decline in 19 months, betting that even an improving global economy won’t ignite a bear market in bonds. Hedge funds and large speculators raised bullish positions in 10-year Treasury note contracts this month to the highest since March 2008. Yields, which surged to 1.86 percent Aug. 21, sparking the worst investor losses for a four-week period since December 2010, will be little changed by year-end, according to the median forecast of 81 strategists surveyed by Bloomberg.
The British economy contracted less in the second quarter than was originally estimated, according to newly revised figures. Gross domestic product (GDP) - a broad measure of the economy - fell 0.5% between April and June in the Office for UK National Statistics' second estimate. But despite the upward revision, it still represents the biggest quarter-on-quarter fall for more than three years and means the economy remains mired in the longest double-dip recession since the 1950s. New figures also showed the UK's trade deficit increased to £7.3bn, up from £3.7bn in the previous quarter as the Eurozone debt crisis hit exports - its biggest fall since the third quarter of 2010, which wiped 1% off the GDP figure.Business investment also fell for the first time for more than a year.

 

Real Estate Sales CY (January - July)

  2012 2011 Diff.
Nicosia 1095 1209 -9 %
Limassol 1098 1260 -13 %
Larnaca 690 599 15 %
Famagusta 391 417 -6 %
Paphos 844 697 21 %
TOTAL 4118 4182 -2 %
Source: Cyprus Land Registry

 

Property Sales
Year Foreigners Locals Totals
2000 450 12214 12664
2001 1207 12849 14056
2002 2548 14111 16659
2003 3991 15294 19285
2004 5384 11947 17331
2005 6485 10106 16591
2006 8355 8598 16953
2007 11281 9964 21245
2008 6636 8031 14667
2009 1761 6409 8170
2010 2030 6568 8598
2011 1652 5366 7018
2012 (7 month) 869 3249 4118
Source: Cyprus Land Registry

 

Real GDP growth rate-volume.Year 2011, forecast for 2012 and forecast for 2013, % (Source: Eurostat)
  2011 2012 2013
Germany 3.0 0.7f 1.7f
Ireland 0.7 0.5f 1.9f
Greece -6.9 -4.7f 0.0f
Spain 0.7 -1.8f -0.3f
France 1.7 0.5f 1.3f
Italy 0.4 -1.4f 0.4f
Cyprus 0.5 -0.8f 0.3f
Portugal -1.6 -3.3f 0.3f
Finland 2.7 0.8f 1.6f
United Kingdom 0.8 0.5f 1.7f
Turkey 8.5 3.3f 4.6f
USA 1.8 2f 2.1f
Japan -0.8 1.9f 1.7f
EU (27) 1.5 0f 1.3f
f=forecast

English Articles of the Month

Nicosia’s Development

5/8/2012

Nicosia’s DevelopmentNicosia has not any major attractions to attract tourists, as well as locals. Most Nicosia town people, daily, but especially over the weekends, visit the towns of Limassol and Larnaca (especially the first) supporting those towns’ economy, hurting the capital’s income with no reciprocal benefits. So, Nicosia not only does not attract tourists, but in addition a proportion of its local spending power ends up in other towns. Read Article
 

Tax Clearance – Resales

29/7/2012

Tax Clearance – ResalesWhen one decides to sell his own property he must provide a tax clearance from the Income Tax Authorities, in order for the transfer to be effected. In its simplest form the cost of the original purchase is calculated (including transfer fees) plus any improvements/ alterations done to the property (for which receipts are needed to be presented) and on top you add the indexation (basically the cost of living index from the date of acquisition). In most cases you will find that the tax burden of capital gains (20% on the difference) after allowing for the exemptions etc etc is practically next to nothing.  Read Article
 

Allowances for Capital Gains Tax in Cyprus

22/7/2012

Allowances for Capital Gains Tax in CyprusCapital gains tax is payable by both residents and non-residents at a rate of 20% on the gains made from the disposal / sale of immovable property in Cyprus in relation to the cost acquisition. If the property was acquired prior to 1.1.1980 the property’s value is adopted as at 1.1.1980 and this value is so recorded on the title deed. If after 1.1.1980 the actual cost of acquisition is adopted. In both cases the acquisition cost is upgraded / inflated, based on the cost of living index, so published on a monthly basis by the Cyprus Government.
Read Article
 

Football & Finance + VAT

15/7/2012

Football & Finance + VATIt is possible dear readers that the above two have any direct relation? But it has, since everything is possible within the Eurozone.
So the prime minister of Italy being encouraged by his football team win over Germany raised his flag of revolt and all E.U. members have decided (with the help of the Spanish prime minister and some help from the French) to exclude the individual Banks’ help from the European bank, from calculating a country’s total debt (described in the simplest form). Will this help Cyprus?
 
Read Article
 

 

Greek Articles of the Month

Ξένοι + Φορολογία

12/8/2012

Ξένοι + ΦορολογίαΕίναι δεδομένο ότι από τις περίπου 60.000 πωληθείσες μονάδες σε ξένους, ένα μεγάλο ποσοστό (έστω 20% = 12.000 μονάδες) ενοικιάζεται από αυτούς σε συμπατριώτες τους και άλλους. Αυτά τα λεγόμενα “holiday villas” διαφημίζονται τόσο επί τόπου, όσο και διεθνώς στο διαδίκτυο, ενώ υπάρχουν εξειδικευμένα γραφεία που χειρίζονται τέτοιες ενοικιάσεις. Εάν υποθέσουμε λοιπόν ότι οι 12.000 ενοικιαζόμενες μονάδες ενοικιάζονται προς €100/ημέρα για 90 ημέρες τον χρόνο, τότε το συνολικό εισόδημα είναι γύρω στα €108 εκ. Αυτό ισούται με ένα διαφυγών φόρο εισοδήματος μαζί με την άμυνα γύρω στα €22 εκ./χρόνο. Read Article
 

Εγγυήσεις + Ανοησία

5/8/2012

Εγγυήσεις + ΑνοησίαΟρισμένες τράπεζες έχουν σκεφθεί στην σοφία τους και υιοθέτησαν ένα νέο σύστημα δανειοδότησης αγοραστών κατοικιών όταν δεν υπάρχει τίτλος ιδιοκτησίας. Εκτός του ότι έχουν υποθήκη το έργο, εκτός από την εγγύηση του πωλητή, επιβάλλουν την έκδοση τραπεζικής εγγύησης για την ημερομηνία έκδοσης τίτλου, προς όφελος του αγοραστή. Δηλαδή, περίπου, η τράπεζα εγγυάται στον εαυτό της ότι θα εκδοθεί τίτλος και άρα η ίδια η τράπεζα είναι καλυμμένη από τον αγοραστή (δεν το καταλαβαίνουμε)! Read Article
 

Επικίνδυνη Απόφαση κα Μαύρου - Μυστικές Οδηγίες;

29/7/2012

Επικίνδυνη Απόφαση κα Μαύρου - Μυστικές Οδηγίες;Μέχρι τώρα αγαπητοί μας αναγνώστες ξέραμε ότι χωράφια σε αγροτικές περιοχές μπορούσαν να τύχουν ανάπτυξης με μια κατοικία εάν είχαν τις απαιτούμενες παραμέτρους. Στο παρόν άρθρο θα ασχοληθούμε με μια πρόσφατη περίεργη διαφοροποίηση των κανονισμών, που διαφοροποιεί την όλη κατάσταση, προκαλώντας αλυσιδωτές παρενέργειες σε επικίνδυνη μορφή. Τώρα, με οδηγία του Υπουργείου Εσωτερικών η παραχώρηση τέτοιας άδειας θα εξετάζεται με πολύ πιο αυστηρό τρόπο, σε σημείο απόρριψης αίτησης, για να περιορίσει έτσι την συνεχή και άναρχη ανάπτυξη. Με τα νέα δεδομένα, για να     Read Article
 

Μένουμε Κύπρο

22/7/2012

Μένουμε ΚύπροΥπάρχει ένα εξαιρετικό εβδομαδιαίο πρόγραμμα στην Ελληνική τηλεόραση με την ονομασία Μένουμε Ελλάδα. Η σειρά αυτή επί εβδομαδιαίας βάσης επισκέπτεται διάφορους τουριστικούς προορισμούς με εξαιρετική φωτογράφηση και με συνεντεύξεις ντόπιων όσο και τουριστών, Ελλήνων και ξένων (για τα Ελληνικά υπάρχουν και υπότιτλοι στα Αγγλικά). Ομολογουμένως, για εκείνους που δεν γνωρίζουν πολύ καλά την Ελλάδα, ο τηλεθεατής «επισκέπτεται» ορισμένους προορισμούς που σε προκαλεί για επίσκεψη. Το πρόγραμμα επιχορηγείται από τον Ε.Ο.Τ., διατίθεται τόσο σε CD όσο και στο διαδίκτυο για   Read Article
 

 

Our News

Syrian Expansions

Cyprus OilOur Office has been preparing to develop its services in Syria as well as in Egypt. With the prevailing conditions in these two countries in relation with the new measure for buying a house and permanent residence by foreigners, it gives added opportunity and prospect of attracting buyers from these specific countries. Although there is a change of the way of the application of this measure, the Council of Ministers has not cleared its position 100%. Much of the recent improvement of the permanent visa requirements is of due to our own efforts. In view of the escalating Syrian Civil War the Syrian expansion has been postponed.

 

Joint Venture


«Living, Buing Property and Doing Business in Cyprus» on www.cyprusinformation.com is already tranlated to Chinese and Arabic and will also be available in Russian soon. The website's aim is to provide general information about Cyprus, with more emphasis for Real Estate, Tax and Legal matters. The website is part of a joint venture of Antonis Loizou & Associates – Chartered Surveyors,the international accountants KMPG Cyprus  and the largest Law Office in Cyprus A. Neocleous.
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Tel: +357 22 477 600 | Fax +357 22 428 681
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