The reduction in demand for real estate from abroad is a fact, that we have to take into account. Save Limassol and for quality projects in all other areas, the remaining projects are experiencing a reduced demand from abroad, the level of which depends on the quality of the projects and on the competitiveness of their location. For this reason mass produced apartment buildings of a large size and with little competitive edge against other market alternatives, are experiencing a reduction in demand and prices (the delays in sale in addition). The whole situation is aggravated by the lack of titles and the serious difficulties that are experienced from some developers to enter into a resale agreement, when an existing buyer finds a prospective client. To this end and base on our experience and referring to mass produced apartment buildings, whose market is mainly the foreign one, we note the following:

Paphos - 20% reduction
Limassol - on the up
Larnaca - 10% (in certain areas)
Paralimni - 10% (at Kapparis area)

To the whole situation, the international names of Estate Agents who normally charge 15% commission is an additional obstacle. If an apartment which was sold in the local market in the past for say £100.000, it was sold through these international agents, bringing planeloads of unsuspected buyers, the end price was upgraded to cover this excessive commission to £110.000. So these units were 10% overpriced to start with. Now these same original buyers are faced with this “upgrade” of 10% from the start, plus the 10%-20% reduction on current values. So some buyers stand to lose anything between 20%-30% from their 2-3 years ago investment. Added to the whole unhealthy situation, we have made promises to those “hearded” unsuspecting (and we will add naive) investors, who were promised a “guaranteed” rental income of 10% (in actual fact no more than 3%-4%). Now that the situation is not so good for Cyprus (as well as for other similar destinations, such as Spain, Bulgaria etc) these big international and supposly reliable estate agents, who have “their clients interest at hart” are abandoning Cyprus, leaving their clients on their own to sell their property.

We hate ourselves to tell you that “we have told you so” since these international and local cowboys are dealing with this market for a “quick buc” and who do not care less following an original sale. Some of these big-boys, have now destined themselves to become developers in partnership with locals, where the deal is that these agent charge 15% commission and the locals put up the land and finance, but the agents sell only these related to them projects. To their prospective clients (not disclosing their interest) the same promises are repeated. Similarly we wish to add that local estate agents are not all angels. The magnitude of this behaviour is beyond us and to this end we ask why the British Government (mainly British based agents) does not intervene, especially since these British estate agents mislead their own country people. A recent law in the U.K. regarding property deals avoided (purposely?) the registration of the U.K. estate agents and for which the Royal Institution of Chartered Surveyors has complained intensely. Why is this happening all over Europe? The reason is of course money. These big boys, it appears, have a lot of muscle and they even have access to the E.U., hence the recent letter from the E.U. to the Cyprus Government referring to the existing Cyprus Estate Agents law. The reason for this intervention is that it is an attempt by the “free for all” and “anything goes” supporting agents, to have a clear hand with no legal reprecautions in Cyprus!!

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