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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 2, May 2009
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Cyprus Economy
● The first signs
of the impact of the credit crunch on the tourism industry have started
appearing. Tourist arrivals were down 16.4% in March, compounding a decrease of
19.3% in February. The biggest decrease was arrivals from the UK – down 26.9%,
compared to 2008.
● Unemployment in
March reached 4.9%, compared to 3.7% last year. Whilst this increase is atypical
for this time of the year when seasonal workers are employed in the tourism
industry, it still compares favourably with that in the Eurozone where
unemployment reached 8.9%, up from 7.2% last year.
● A clear sign of
the ongoing decrease in confidence and conservative consumer spending,
government income from VAT decreased by 13.1% on the quarter. Total income from
taxation was down 4.66%.
● The Cyprus
stock market was 24% up month-on-month, mainly driven by increases in shares in
the banking sector.
Cyprus Property Market
● The downward
pressure on property prices continued during April, as pessimism about a quick
rebound in property prices persisted. However, there are early signs of activity
in the market as locals are looking to take advantage of lower prices and an
increase in lending from banks and coops.
● The full impact
of the economic slowdown was visible in the government’s income which is derived
from real estate taxation (capital gains; down 84% on the year.
● Whilst demand
for acquisitions of houses/apartments has decreased, it is expected that there
will be an increase
in demand for holiday homes by locals. This is likely due to lower prices for seaside dwellings,
especially by hard-pressed foreign investors/buyers.
● The High Court
decided that the 2003 Nicosia Local Plan was/is not valid, and as such the local
plan of 1996 is to be used going forward. Whilst the government is attempting to
restore the plan, this additional uncertainty is causing negative feelings in
the marketplace.
● As a measure to support companies, the government
announced that the biannual increase in rent of rent control properties will be
capped at 8% for the next two years (compared to 14% until now). |
Global Property
Market
● UK housing
prices have continued to decrease and are now a record 10.3% lower than a year
ago, even though the prices fell at their slowest pace for 10 months in March.
● Tentative sings
of increased activity in the UK market have continued as investors are attracted
by the drop of the UK sterling relative to the Euro, lower prices, and the low
opportunity cost of bank deposits.
● The economies
of Central and Eastern Europe are under increased pressure due to the outflow of
foreign investment (flight to safety). The IMF is at various stages to offer, or
is offering, assistance to Hungary, Serbia, Latvia, Ukraine, Poland, Turkey,
Bosnia and FYROM.
● Overall, during
2009 property prices are anticipated to fall by 15-25% throughout Europe,
although in some cases (e.g. for development land) the drop is likely to exceed
50%.
● The European
Central Bank (ECB) has slashed its base rate to 1.25%, and has indicated that it
will take “any action necessary” to restore confidence in the marketplace.
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Cost of Debt |
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GBP LIBOR |
EURIBOR |
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15/04/2009 |
One
year ago |
15/04/2009 |
One
year ago |
| 3 month |
1.53% |
5.93% |
1.42% |
4.76% |
| 6 month |
1.77% |
5.90% |
1.60% |
4.77% |
| 12 month |
1.99% |
5.80% |
1.77% |
4.77% |
| 2 year |
2.17% |
5.03% |
1.89% |
4.31% |
| 3 year |
2.60% |
4.95% |
2.25% |
4.22% |
| 5 year |
3.15% |
4.97% |
2.78% |
4.23% |
| 10 year |
3.71% |
5.00% |
3.51% |
4.48% |
| 15 year |
4.03% |
4.95% |
3.90% |
4.68% |
| 30 year |
3.92% |
4.66% |
3.83% |
4.72% |
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Articles
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Antonis Loizou & Associates provides insightful research for business magazine "In Business" |
19/04/2009 |
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Using data from the Cyprus
Statistical Service and the Nicosia Land Registry for the years 1998-2008,
Antonis Loizou & Associates analyzed the drivers behind the increase in real
estate prices as well as the affordability of housing by locals. The study was
based on over 400 real estate transactions, and construction cost and income
data provided by the Cyprus Statistical Service.
(PDF - in Greek)
Download Article |
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Apartment Extent |
Antonis Loizou, FRICS 19/04/2009 |
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There is a great confusion regarding the extent of
the apartments and how this is measured. Each owner uses his own methodology
of calculation, so the unsuspecting buyer does not know what he is actually
buying. Various developers and sales people use imaginative approaches of
how the extent should be calculated, usually by giving an exaggerating
picture of the size.
Read Article |
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Pricing of Residential Properties |
Antonis Loizou, FRICS 12/04/2009 |
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When a residential vendor considers the asking
price for his property, there are several parameters that he must take into
account, in order to reflect the “right” price for sale. Of course, at the
end of the day, the sales price is set by demand and supply, the economic
conditions of the country etc. But other than these general parameters, we
list below some of the main considerations that one vendor should take into
account.
Read Article |
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Cypriots Interest for Foreign Real Estate |
Antonis Loizou, FRICS 05/04/2009 |
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We, as Cypriots traditionally invested in the U.K. property market with the
center of interest being Central London. With the close ties that we have
with the U.K. and with 40% of the university graduates in Cyprus studying in
the U.K., this is not a surprise.
Read Article |
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Explore Troodos Mountain |
Antonis Loizou, FRICS 29/03/2009 |
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Most foreign people prefer to acquire a permanent/holiday home near the
beaches and this is quite understandable. We are surprised however to
ascertain that very few, mainly foreign people, holiday makers or otherwise
explore Cyprus mountains, especially that of the Troodos range. Part of the
attraction of buying property in Cyprus, are the short distances from just
about anywhere and with a diversity of scenery.
Read Article |
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Estate Agents & Cafeterias |
Antonis Loizou, FRICS 22/03/2009 |
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In this depressing global economic climate, we write this article on a light
note, not only to get away from our depressing thoughts of the industry, but
also to be informed of the diversity in the erteneouship of estate agents
worldwide. We have our own experience in Cyprus, but it is worth noting what
other estate agents are up to it Europewide (to the extent we came to know
about it).
Read Article |
Our News
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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 Loizides (CEO of Piraeus Bank Cyprus) and
Mr Loizou at the seminar with Piraeus Bank.
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Russian Venture
Antonis Loizou (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) has
and will participate 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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Photos from Antonis Loizou (International) 's stand in the property exhibition
in Moscow and St Petersburg (April). |
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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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