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Company Profile
Antonis Loizou & Associates is a professional firm of Chartered Surveyors
offering valuation, agency and project management services. The firm was set up
in 1980 and is now the largest and most comprehensive professional firm of
Chartered Surveyors in Cyprus and the Eastern Mediterranean. The firm employs 75
members of staff across 8 offices in Cyprus, Romania, and Russia 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.
More about us
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Issue 1, April 2009
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Cyprus Economy
● GDP growth is likely to fall to
1.5% from 3.5% due to weaker domestic and external growth. ● GDP growth is forecasted to
reach 2.0% in 2010 and 3.5% in 2011-2013 ● The Cyprus Central
Bank expects
that the balance will swing into deficit in 2009. ● There has been a decrease of
20% in the number of holiday bookings; a clear sign that after the real estate
market the tourism industry is set to feel the effects of the financial
crisis.
Cyprus Property Market
● Over the past six month real
estate prices have dropped in the tourist areas of Protaras and Pafos by an
average of 25%. The most affected are flats and small units in secondary
locations. ● Whilst demand for acquisitions
has decreased, there has been an increase in demand for rentals. This has
caused residential rents to rise by 5-10%, a trend that we do not expect to
continue due to the increased supply of apartments in various markets caused
by the large number of available apartments in various locations ● The markets of Limassol and
Nicosia have not seen significant decreases in prices, but this is unlikely to
hold as inactivity in the market puts additional pressure on debt ridden
sellers/ developers. |
Global Property
Market
● In the UK house prices have fallen by an average of 15%, with houses in secondary
locations falling as much as 30% and flats by 40-60%.
● The economies of Central and Eastern Europe are
under increased pressure due to the outflow of foreign investment (flight to
safety) which is causing a depreciation of their currencies relative to the
Euro (the average fall has been c25%).
● As property prices are quoted in Euro it means
that property prices have increased by the same percentage for locals who earn
their salaries in the local currency.
● Overall, during
2009 property prices are anticipated to fall by 15-25% throughout Europe.
● The European
Central Bank (ECB) has slashed its base rate to 1.5%.
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Cost of Debt |
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GBP LIBOR |
EURIBOR |
| |
23/03/2009 |
One
year ago |
23/03/2009 |
One
year ago |
| 3 month |
1.75% |
5.99% |
1.56% |
4.67% |
| 6 month |
1.97% |
5.96% |
1.71% |
4.68% |
| 12 month |
2.14% |
5.82% |
1.86% |
4.68% |
| 2 year |
2.16% |
5.10% |
1.90% |
4.13% |
| 3 year |
2.50% |
5.02% |
2.22% |
4.05% |
| 5 year |
2.99% |
5.00% |
2.74% |
4.05% |
| 10 year |
3.59% |
4.98% |
3.46% |
4.28% |
| 15 year |
3.92% |
4.92% |
3.82% |
4.49% |
| 30 year |
3.75% |
4.62% |
3.77% |
4.50% |
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Articles
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Over Enthusiasm over Nothing? - Iran |
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Antonis Loizou, FRICS 15/03/2009 |
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We have all watched the interview on the TV of the
Cypriot Minister of Commerce expressing his opinion on the “serious
interest” that Iranians have for Cyprus and the potential that exists for
Iranians buying real estate here. He reported that due to Iran’s holiday
next month, chartered flights have been organized for 1000 Iranian
holidaymakers to visit the island. This statement has caused an over
enthusiasm and raised hopes amist falling tourist interest (approximately
20%-25% lower than last year) and hopes for developers and others, due to
the drastically reduced foreign real estate interest (approximately 50%
reduction). |
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Read Article |
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Ιnsurance Cover - Care is needed |
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Antonis Loizou, FRICS 08/03/2009 |
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We can say that most people take
out an insurance to insure their building, which usually covers various
events, mainly fire, earthquake, burst pipes, flooding, acts of God etc etc.
One cannot be too sure where the cause of damage will come from, so, it is
our opinion that a building should be covered for all eventualities, even if
this has a slightly higher insurance cost. Special care is needed however
when signing the insurance policy for the so called exclusion clauses. One
such exclusion clause is that if a building is damaged as a result of a bush
fire, there is no cover (unless you so stipulate) |
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Read Article |
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Passports for Cash? |
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Antonis Loizou, FRICS 01 /03/2009 |
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During these difficult times that
the global economy is experiencing, the Cyprus Government has adopted a
similar plan that Canada adopted when Hong Kong ceased to be a British
colony some years ago. Canada was offering nationality/passports to the
local Hong Kong residents provided they deposited USDollars 500.000 for a
certain period of years. So it did not particularly surprised us when we
studied a rather recent change of policy by the Cyprus Government to adopt a
similar approach. |
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Read Article |
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The Russian Market & Cyprus Real Estate |
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Antonis Loizou, FRICS 22/02/2009 |
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One of the measures that the
Cyprus Government is taking to help ease the situation with respect to the
credit squeeze, it has announced a new housing finance scheme, which will be
funded with €200 mil. and both locals as well as foreign people (E.U.
members) can apply. The scheme refers to the first and permanent home of an
applicant and provided the applicant lives in Cyprus for the last 5 years
prior to the application. Eligible applicants must have an annual income
less than €40.000 (for couples) and €22.000 (for single parents) and it
covers both the building of a house (provided the applicant owns the plot),
as well as buying a ready one. |
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Read Article |
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Golf Courses - A corrective route? |
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Antonis Loizou, FRICS 08/02/2009 |
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The very recent decision of the Ministerial Committee to go ahead with the
issuing of permits for 14 golf courses, is good news for the building
industry and the tourist section as well. The Committee will submit its
recommendations to the Council of Ministers and after its approval, we will
expect the golf courses to commence development within the year 2010 (after
securing the planning/building permits etc). |
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Read Article |
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Gambling on a Sale? |
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Antonis Loizou, FRICS 25/01/2009 |
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With the local and global situation being what it is, many
property owners remain enclaved within their property not being able to sell
- On many occasions, it is not only a matter of price, but that the demand
is just not there. So many people are trying to find innovative ideas how to
promote a sale and we list some of these, which are interesting mainly on
the theoretical side of things, but we record them in order to show the
resosfullness of people around the world. |
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Read Article |
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Cancellation Agreements |
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Antonis Loizou, FRICS 19/01/2009 |
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Due to the long time that it takes for the issue of titles, a new approach
has been adopted by the Market in order to by-pass this problem. The
cancellation of the original agreement and re-sale. So if one buys a
property and wishes to sell it, say, after 7 years (and the property has no
title) he is restricted by the wishes of the registered owner (as he is so
recorded in the Lands Office records). |
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Read Article |
In the news
Videos
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Τα μαθηματικά των ακινήτων |
Μέτρα
στήριξης της κατασκευαστικής βιομηχανίας |
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O Παύλος Λοΐζου φιλοξενήθηκε την
Παρασκευή 13 Φεβρουαρίου στην πρωινή εκπομπή «Πρωτοσέλιδο» με το Παναγιώτη
Δημόπουλο της τηλεόρασης του SIGMA με αφορμή το άρθρο του
"Τα μαθηματικά των ακινήτων"
που δημοσιεύτηκε στο InBusinessNews (Φεβ. 2009).
Watch Video (from
YouTube) /
Read Article |
Ο κ. Αντώνης Λοΐζου ήταν
προσκεκλημένος στις 27 Ιανουαρίου 2009 στο ΡΙΚ-1 του Μάριου Μαυρίδη στην
εκπομπή ‘Τηλεοικονομία’. Συζητήθηκαν διάφοροι τρόποι και βήματα που η
Κυβέρνηση αλλά και άλλες επιχειρήσεις και τράπεζες θα μπορούσαν να
υιοθετήσουν για να στηρίξουν την κατασκευαστική βιομηχανία.
Download Video (100MB) |
Press
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Παιδιά σε καλούπια πατεράδων
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InBusinessNews,
16/03/2009 |
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«Το μήλο κάτω από τη μηλιά θα πέσει», καθώς λένε. Στις
περιπτώσεις πατεράδων και παιδιών επιχειρηματιών της αγοράς των ακινήτων,
που σήμερα δημοσιεύουμε, το μήλο μέστωσε κι έπεσε. Η
μηλιά ήταν γερή. Ρίζωσε, κλαδεύτηκε, άνθισε, μεγάλωσε και οι καρποί της
γλυκείς και υγιείς έπεσαν στον ίσκιο της. |
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Read
Article |
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Κτηματολόγιο: Βλέπει μειώσεις μέχρι 20% |
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InBusinessNews,
13/03/2009 |
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Μειώσεις μέχρι 20% στις τιμές των ακινήτων στην Κύπρο βλέπει
τη φετινή χρονιά ο διευθυντής του Τμήματος Κτηματολογίου και Χωρομετρίας
Ανδρέας Χριστοδούλου. Μιλώντας στο InBusinessNews o κ. Χριστοδούλου τόνισε
πως μέχρι στιγμής παρά το ότι μειώθηκαν οι πωλήσεις ακινήτων κατά 80%
περίπου, οι τιμές παραμένουν στάσιμες. «Κατά την εκτίμηση μας οι τιμές
ανάλογα με την περιοχή θα μειωθούν μέχρι 20%, αφού οι μειωμένες πωλήσεις δεν
θα μπορέσουν να συγκρατήσουν τις τιμές», επεσήμανε. |
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Read
Article |
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Seminars
Managing Partner, Mr. Antonis
Loizou, FRICS, was invited by Piraeus Bank, Alpha Bank and Marfin Laiki Bank to
carry out seminars regarding «The use of property as collateral in
today’s market». The three-hour seminars were
given at the Banks' premises and all the managers that have a role
in the provision and review of loans and financial services were present.
Number of issues pertaining to the Cypriot property market were discussed,
including new approaches of financing under the current economic circumstances,
developments projects and mid-term financing, golf courses, marinas, etc,
financing of overseas buyers, Government measures, the release of mortgaged
properties, and forecasts. All seminars were followed by a discussion between
Mr. Antonis Loizou and the attendees of the Banks’ Managerial staff.
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Mr. Loizou with Alpha Bank's managers
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Russian Venture
Antonis Loizou & Associates (International) has concluded an agreement to market
exclusive Cypriot properties to the Russian market. The properties have been
meticulously sourced from six reputable developers and form part of some of the
best developments on the island.
As part of the promotion, Antonis Loizou & Associates (International) will take
part in exhibitions both overseas and locally, provide marketing material, and
prepare a marketing strategy.
For further information please visit the micro-site at
www.aloizou.com.cy/projects
or download the
brochure (In Russian) |
Visit www.aloizou.com.cy/projects
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The aim of this newsletter is to provide a brief analysis on the current state
of the economy, as well as an indication on the real estate market both locally
and globally. This newsletter should be considered as an advisory one; the aim
is just to provide monthly information regarding the aforementioned issues. Our
newsletter will also provide a list of articles and questions and
answers as well as news and exhibitions of the company.
Antonis Loizou & Associates
Head Office | 68A Kennedy Avenue | 1076 | Nicosia | Cyprus
Tel: +357 22 477 600 | Fax +357 22 428 681
www.aloizou.com.cy |
www.aloizou.ro |
www.aloizou.ru
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