View Issue 88, November 2017 in your browser Newsletter archive: 2010 - 2014 | 2015

Issue 88, November 2017

The number of unemployed drops

The number of unemployed person in Cyprus in October 2017 dropped by 7.270 persons or 21.6% in relation to October 2016, according to a press release issued on Friday by the Statistical Service of Cyprus.

The unemployed persons, registered at the District Labour Offices on the last day of October 2017, reached 26.436, which is the lowest level since May 2011.

Based on the seasonally adjusted data that show the trend of unemployment, the number of registered unemployed for October 2017 decreased to 31.228 persons in comparison to 32.036 in the previous month.

The reduction in the number of unemployed persons was mainly observed in the sectors of construction (a decrease of 1.332 unemployed persons), trade (a drop of 1.286), public administration (a reduction of 973), accommodation and food service activities (a decrease of 771), financial and insurance activities (a decrease of 625), manufacturing (a decrease of 620) and to newcomers in the labour market (a decrease of 686).

Full Article StockWatch, 6 November 2017

Home prices up says Cyprus Central Bank

Home prices in Cyprus (houses and apartments) recorded a quarter-on-quarter increase of 0.5 per cent in the second quarter of 2017 according to the Cyprus Central Bank’s latest Residential Property Price Indices.

THE CENTRAL Bank of Cyprus reports that home prices, which include apartments and houses, increased 0.5 per cent in the second quarter of 2017 compared with the first quarter in its latest Residential Property Price Index.

Full Article  Cyprus Property News, 10 November 2017

Download the index (in Greek) (PDF)

Autumn 2017 Economic Forecast - Cyprus

The euro area economy is on track to grow at its fastest pace in a decade this year, with real GDP growth forecast at 2.2%. This is substantially higher than expected in spring (1.7%).

The EU economy as a whole is also set to beat expectations with robust growth of 2.3% this year (up from 1.9% in spring).

According to its Autumn Forecast released, the European Commission expects growth to continue in both the euro area and in the EU at 2.1% in 2018 and at 1.9% in 2019 (Spring Forecast: 2018: 1.8% in the euro area, 1.9% in the EU).

For Cyprus, economic growth has exceeded expectations in recent quarters. It is forecast to reach 3.5% in 2017 and to ease but remain robust over 2018 and 2019.

Domestic demand is expected to be the main growth driver. Unemployment is set to continue falling and inflation is expected to remain moderate.

On thefiscal side, headline surpluses are expected between 2017 and 2019, underpinned by a favourable macroeconomic environment.

Press Release  European Union, 9 November 2017

Download the publication for Cyprus (PDF)

PwC: Cyprus Real Estate Market | First Half |2017

Developments in the Cyprus real estate sector and the important changes in International Financial Reporting Standards (IFRS) and tax legislation that affect the sector were the focus of an event organised by PwC Cyprus in Limassol on 7 November.

During the event, PwC Cyprus also unveiled its second publication on the Cyprus land development market entitled “Cyprus Real Estate Market – First Half 2017”. The publication, which is aimed at individuals and companies interested in developing, investing in, buying or selling or renting real estate, is a rich source of information for the better understanding of the current state of the sector as it analyses all the parameters concerning a property geographically and by time period, as well as by type

Press Release  PwC, 7 November 2017

Download the publication (PDF)

Parliament approves VAT on building land bill

PARLIAMENT on Friday 3/11 approved a bill imposing 19 per cent VAT on the sale of building land, fulfilling an EU condition some 10 years after the original deadline.

The bill passed with the votes of 26 MPs from DISY, DIKO, Solidarity, and the Green Party. Eighteen MPs from AKEL, EDEK, ELAM, and one MP each from DIKO and Solidarity, voted against. The law in question should have been passed by January 1, 2008 and delays prompted the EU Commission to warn Cyprus repeatedly with stiff fines. The new law will come into force on January 2, 2018.

Full Article  Cyprus Mail, 3 November 2017

More efforts needed to reduce NPLs

DANIELE NOUY, Chair of the European Central Bank’s Supervisory Board, has called for additional and persistent efforts to bring about a sustainable reduction of the extremely high stock of non-performing loans (NPLs) plaguing the Cypriot banking system.

In an interview with the Cyprus News Agency (CNA), Nouy acknowledged the progress made by the island’s commercial banks to reduce NPLs but noted that NPLs in the Cypriot banking sector remain at extremely high levels, while progress was uneven across banks.

Full Article Cyprus Property News, 16 October 2017

Economic growth to accelerate

Economic growth in Cyprus will accelerate even more in 2017 and 2018, University of Cyprus’ Economic Research Centre said, significantly upgrading its previous projections issued in July.

In the November Economic Outlook, the ERC said the Cypriot economy will expand with 3.6% and 3.3% in 2017 and 2018 respectively compared with 3.0% and 2.7% in the respective Outlook of November. 

The ERC also upgraded its projections for economic growth in this year’s third and fourth quarters, now projected to reach 3.6% and 3.7% compared with 2.9% και 2.8% in the July projection.

“Real economic activity in Cyprus is expected to continue to expand strongly in 2017 and 2018,” the ERC said.

Full Article  Stockwatch, 6 November 2017

Download the report (PDF)

Cyprus property sales up 21% in October

Property sales in Cyprus rose 18 per cent in October compared with October 2016 with sales increasing in all districts (with the exception of Larnaca) according to official figures from the Department of Lands and Surveys.

This rise follows a rise of 8% in September, a 27% rise in August and an 18% rise in July. During October a total of 768 contracts for the sale of residential and commercial properties and land (building plots and fields) were deposited at Land Registry offices across Cyprus, compared with the 634 deposited in October 2016.

Full Article  Cyprus Property News, 2 November 2017

RICS: Cyprus property prices on the rise

Cyprus property prices are continuing to rise, according to the thirty-first publication of the RICS Cyprus Property Price Index with apartment and house prices maintaining a steady growth.

Full Article  Cyprus Property News, 15 November 2017

Download the Index Q2 2017 (PDF)

Cyprus Economy & Property Market

Global Property Market & Economy

Aristo Developers Issues Over 500 New Title Deeds in 2016
12/10/2017, Gold News
Considering the importance of the issuance and transfer of titles deeds, Aristo Developers has informed its customers and the general public

Loan Restructurings Decline Their Lowest Level This Year
08/11/2017, Gold News
As the banks enter into the more difficult cases of non-performing exposures (NPEs), which in July declined marginally to €22.63 billion, marking a reduction of 0.06 billion compared with the previous month

VAT returns and refunds
31/10/2017, Elias Neocleous LLC
One of the current priorities for the Cyprus Tax Department is to modernise the administration of the tax system, moving away from a paper-based system to a more streamlined electronic system for submitting returns, and for making payments and refunds, both for direct taxes such as income tax and Special Contribution for Defence, and for VAT.

New tax residence provisions for individuals
31/10/2017, Elias Neocleous LLC
In a major development, in July the government introduced a new route to tax residence for individuals, via Law 119(I) of 2017.

Cyprus leads European citizenship by investment schemes
31/10/2017, Elias Neocleous LLC
In a recent analysis of citizenship by investment schemes carried out by Professional Wealth Management, part of the Financial Times group, Cyprus was assessed to be the leading European country.

Personal transfers from Cyprus €494 mil
13/11/2017, StockWatch
In 2016, flows of money sent by residents of the European Union (EU) to non-EU countries, referred to as personal transfers, amounted to €30.3 billion, compared with €31.3 bn in 2015.