We wish to report to you the new statistical information that we have received from the Lands Office.

Things are improving but at a very slow pace. The recent U.K. international exhibition showed that the British demand is still active, but it is directed with regard to Cyprus for relatively low income purchases around €150.000. The Russian market has not shown any signs of recovery in terms of the million euros sales but it has been reduced to the €300.000-€500.000 mark. The resales is one of the problems which offer real opportunities and with the Pafian developers offering 30% discounts (in effect we will add more like 40%) is an example still competing with resales, whereas the lack of titles is another major handicap in the recovery of real estate sales. Of course Cyprus is not alone in this situation. Greece has gone down in shambles, as Spain has, but the signs for Cyprus are there. We keep a close watch on the British economy, which for Cyprus means the main holiday market demand, but the new measures that have been undertaken by the Government are showing some future results. We now see interest from Iran and our recent information is interest from Kazakhstan(!!!). The Government’s policy “cash for residency” and “cash for passports”, it appears, it has attracted the attention of all sort of people/countries. Interest from Russia is keen, but due to E.U. regulations and with the problem of visas, this has been a problem. The recent decision to have more visa outlets in Russia (through the Bank of Cyprus 200 branches in Russia) is a positive move.

With regards to when we expect a recovery in the real estate market, this is difficult to say, since this will depend on the economies of the foreign buyers countries, as well as our own. Foreign buyers must first settle their own debts and if and when they feel confident then they will venture to buy holiday homes. This situation will not happen to the extent we knew prior the year 2007. We expect that recovery will appear during the year 2011 (for Cyprus). Based on British estate agents report, demand from the British market regarding Pafos has increased by 12% over the last 12 months. The reports indicate also that during the year 2010 British, demand for homes abroad has increased by 60% in relation to the last 3 months. It concludes that the most popular destination for British buyers is Spain, France and U.S.A., whereas Italy, Turkey and Cyprus follows, with Cyprus forming part of the top 6 most preferred destinations.

Without blowing our own horns, Cyprus, as a retirement people/holiday home destination has a lot going for it. When we consider what has happened in Bulgaria (thousands of Brits invested their savings there which now are practically worth nothing) and by comparison with the new destinations such as Morocco, Egypt etc, we, in Cyprus, seem to be O.K. Try to complain in Turkey about a building which is illegal or even in Spain, where your complain might get you a demolition order and for some countries most likely you end up in prison. Are we then O.K.? Of course not, but we must examine our own situation in prospective. Yet do not have “hot soups” (see ex-pats see Spain), nor Florida 50% lower values and forced sales within 3 weeks after 3 months delayed payments.

Thank God that we live in a small country and notwithstanding the fact that we have serious and numerous problems, it takes time to put matters right. The much awaited building amnesty is expected to be in place over the next 2-3 months which will go a long way to address some of the problems. There is hope then for this island.

Who said that living in a small country is all bad?

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