Responding to the wide publicity on bad property dealings caused in part by local solicitors, the Paralimni law office of A. Kouzalis, has organized a real estate seminar at Ayia Napa on the 28.11.07, with the subject of “The Real Estate situation, permits, title issues, sales and resales”.

The scope of the seminar was to expose the problems that the industry is facing with respect not only to bad contracts, but on the delays and difficulties that are caused by the title issue and the repercussions on this. The expected 60 attendants, reached 126 people, comprising of local lawyers, the local town planning office, local Municipalities, accountants and the technical services of local authorities, Bankers, developers and members of public.

This private seminar success indicated not only the concerns of the participants in the industry, but also their own worry on the future.

The seminar which was addressed by our own Antonis Loizou, being the main speaker, analyzed the following items:

• The title deeds procedure. From start to finish.

• The original and renewal building permits and their affects.

• The certificate of final approval and the occupation of buildings without. Implication of law and local practice.

• The indifference vis-à-vis the strict adherence of the regulations. Different approaches by different authorities.

• The new type of titles (shares in property), their problems and complications in terms of resale, security, inheritance and values.

• The dos and don’ts of a sale contract. Practical problems. The ideal contract and the buyers choice.

• Capital gains tax - details usually forgotten. How easy is to claim the £50.000 tax exception.

• Main residences with respect of the V.A.T. refund. A different situation with respect to foreign buyers. What is the interpretation of a main/permanent residence and how this is established.

• The new town planning measures as those were announced last week by the Minister of the Interior. Their implications and timing regarding timing of titles.

• The market situation and the trend on property prices. Repercussions from the U.K. property market, affects on British demand for foreign property.

• V.A.T. on land acquisitions (pending) and its affects on cost/sales prices.

The 3 hour seminar which was followed by 1½ hour of questions and answers, touched upon other items, such as double transfer fees, tax releases and other income tax issues, cancellation agreements and charges etc. A lot of interest was generated extending the seminar to late afternoon.

The seminar and its success is an indication of the interest that exist between the local professional people and their care to protect the industry. A similar seminar will be held in the same area (Ayia Napa) in January, organized by a U.K. charity with a similar agenda (in English) which again shows the public’s concerns.

The Ayia Napa/Paralimni/Sotira area of the Famagusta region is attracting at an increasing number foreign demand, which in terms of numbers it has reached 50%-50% (locals to foreign). This region with the best beaches in Cyprus, is expected to expand by even higher rate, pending the development of an 18 hole golf course and the Ayia Napa marina (1000 berths) as well as the new Ayia Napa-Paralimni road.

In terms of property prices, the region has reached prices of £1.400/sq.m. in terms of apartments and £2.000/sq.m. in terms of individual (non beach) villas, with £3.000/sq.m. for villas right on the beach. In terms of comparing the prices for beach and non beach villas, the difference is quite low (similar in terms of apartments) i.e. approximately 50% more, whereas Limassol shows a difference of 10%.

The region despite its attractiveness, has the disadvantage of a very short season of only 4 months with the dead period being September up to April/May with the region becoming more of a ghost area (save the villages’ original development areas). So far those who wish to have a permanent home, but yet to be in the middle of “living” the area is not for the lonelys (notwithstanding the fact that Larnaca town is only 30 minutes drive away). Paralimni/Famagusta region is more suitable for a permanent living, quiet winter season, doing with limited number of friends, an ideal area for long walks and family without children (early to bed). Not everybodys in terms of permanent living, but it takes all sorts.

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