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 the largest and most comprehensive professional firm of Chartered Surveyors in Cyprus and the Eastern Mediterranean over the last 31 years. The firm employs 55 members of staff across 7 offices in Cyprus and Romania, 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.       About us

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Issue 29,
October 2011

Download the Real Estate Index (Greek , 2.6MB, 100 pages) | Previous indices

Sales Contracts / Land Registry
A new dip in property sales was recorded in September, according to the latest statistics of the Land Registry. Based on recorded sale contracts, a fall has been recorded in all towns with the exception of Limassol, which is at the same levels of last year. According to the latest released figures, property sales declined for the 14th consequetive month. For September 2011, recorded sales contracts were at 608 compared to 687 for September 2010, showing a decrease of 11%. In the unoccupied Famagusta area there was an increase of 43% and in Limassol an increase of 7%. With regards to the first nine months of 2011, recorded sales are at 5317 compared to 6446 of last year, showing an increase of 18%.

Larnaca seems to have the biggest decrease over the first nine months of 2011, with recorded sales at 767 compared to 1058 of last year, showing a decrease of 28%. Nicosia showed a decrease of 24%, with recorded sales at 1455 compared to 1906, for the same period last year. Paphos showed a decrease of 23%, falling to 925 recorded sales, compared to 1194 sales for the same period last year.

However, Limassol showed a decrease of only 1% with recorded sales of 1615 compared to 1628 last year for the same period. This trend is explained by the interest of the Russian Market for Limassol.

See further information from Land Registry in Greek

Cyprus Economy

• Euro area annual inflation is expected to be 3.0% in September 2011 according to a flash estimate issued by Eurostat, the statistical office of the European Union. It was 2.5% in August. For Cyprus the annual inflation rate for August was at 2.70%, compared to a 3.50% in July 2011
• The Euro area seasonally-adjusted unemployment rate was 10.0% in August 2011, unchanged compared with July 2011. For Cyprus, seasonally -adjusted unemployment rate was at 7.2% for August 2011, compared to 7.5% in July.
• Revenue from tourism reached €267,0 mn in August 2011 compared to €241,1 mn in the corresponding month of the previous year, recording an increase of 10,7%. For the period January – August 2011 revenue from tourism is estimated to €1.218,4 mn compared to €1.050,5 mn in the corresponding period of 2010, recording an increase of 16,0%.
• According to the Statistics Department the GDP growth rate in real terms during the second quarter of 2011 is estimated at 1,4% over the corresponding quarter of 2010. Based on seasonally and working day adjusted data, GDP growth rate in real terms is estimated at 1,3%. The secondary sector of the economy (Construction, Manufacturing) continues to present negative growth rates, while positive growth rates are recorded in the sectors of Trade, Tourism, Banking and Services (Public Administration, Education, Health and other services).
• In the worst position of all European entrepreneurs are Cypriots, as the lending rates of banks to businesses are the highest in Europe according to European Central Bank. Business loans in Cyprus, are higher even than those of Greece. In July 2011 interest rates reached an average of 6.66% compared to 6.06% in Greece. In the eurozone interest rate for corporate loans averaged 3.82%. Mortgage interest rates in Cyprus, which are on average 5.46% are almost 1% over the month of August 2010 (4.57%). The corresponding rate in the Eurozone are 4.16% and 5% in Greece.At the same time, interest rates on new deposits stood at 4.13% versus 4.30% in Greece.

Cyprus Property Market

• The House of Representatives has approved a six month extension for the submission of Statements of Intent for Planning Amnesty. The new date has been set on April 6, 2012. Additionally, it is noted that according to the above amendment, it is no longer required for the Statement of Intent to be accompanied by a sworn testament of a member of the ETEK, but a solemn declaration of the applicant.
• The House of Representatives have agreed to a reduced VAT rate of 5% for first-time home buyers. The reduced VAT will apply to houses with a maximum area of 275 m². However, the reduced VAT rate of 5% will be set for the first 200 m². For example if someone were to build/buy a house of 275 m², VAT of 5% will be payable on the first 200 m²,and 15% for the remaining area of the house. If a house exceeds 275 m², then the owner does not benefit from the low VAT.
• 25% of total property sales made ​​in Cyprus in the first eight months of 2011 were foreign buyers. In particular, from 4709 recorded sales contracts, 1197 purchases were by foreigners. The corresponding percentage in 2010 for the first eight months of last year was 21%. The increase occurs, however, not due to increased demand by foreigners, but mainly to reduce demand by locals.
• The residents of Akrotiri are asking through their Community Council to be able to develop their land within the SBA Area of Akrotiri. The Community Council will hold a meeting with the Minister of Interior, Erato Markoulli, to discuss the ongoing housing problem.
•During the period January - June 2011 4,024 building permits have been issued, a decrease of 12.9% over the same period last year, according to a publication of the Statistical Office. The total value of the permits decreased by 24.6% and the total area by 29.3%. These building permits provide for the construction 662 dwelling units. Building permits constitute a leading indicator of future activity in the construction sector.

Global Property Market & Economy

• The European Central Bank (ECB) kept eurozone interest rates unchanged at 1.5%. Additionally, the ECB is offering unlimited new one-year emergency loans to banks to help steady the eurozone. The ECB said it would also help the banks by spending 40bn euros buying assets from them known as covered bonds.
Speaking at a news conference, ECB President Jean-Claude Trichet urged "banks to do all that is necessary to reinforce balance sheets" where needed.
• The Bank of England has said it will inject a further £75bn (€86bin euros) into the economy through quantitative easing (QE). The Bank has already pumped £200bn (€230bn euros) into the economy by buying assets such as government bonds, in an attempt to boost lending by commercial banks. But this is the first time it has added to its QE programme since 2009. The Bank also held interest rates at the record low of 0.5%.
• The US economy added 103,000 jobs in September, ahead of many economists' expectations. But the jobless rate was stuck at 9.1%, according to latest data from the Department of Labor. Although the figures were boosted by the return to work of striking workers, the department also revised upwards employment data from August and July.
• According to the latest Halifax House Price Index , in 2011 Quarter 3 (July to September) house prices were 0.1% higher than in the previous quarter. This was the first quarterly rise since 2010 Quarter 1 (0.6%). On a monthly basis, house prices fell by 0.5% in September. There has been a very mixed pattern of monthly price movements so far this year with four monthly rises, four falls and one month when prices were unchanged. On an annual basis, prices in September were 2.3% lower as measured by the average for the three months to September against the same period a year earlier. The annual rate is slightly lower than in August (-2.6%) and continues the improvement seen since May when prices were 4.2% lower annually.
• Italian and Spanish government debt have both been downgraded by the Fitch credit rating agency. Fitch cut Italy's rating by one notch, from AA- to A+, following fellow agency Moody's downgrade earlier this week. Fitch cited the "intensification" of the eurozone debt crisis that "constitutes a significant financial and economic shock which has weakened Italy's sovereign risk profile". The agency also cut Spain's rating by two notches, to AA-.
• Eurozone finance ministers have delayed making a decision on giving Greece its next instalment of bailout cash, sending European shares down sharply. It came after Greece said it would not meet this year's deficit cutting plan. A meeting set for 13 October, when finance ministers had been expected to sign off the next Greek loan, has now been cancelled. As a result of the decision by finance ministers, Greece may not get its next loan tranche until November. Its Finance Minister, Evangelos Venizelos, said "that should not cause any difficulties as the Greek government had no funding problem until November".
 

English Articles of the Month

Build or Buy? 25/9/2011 For those brave people who want to invest in real estate with particular reference to houses, now is “their time” to get a good deal, as opposed to that of the previous years. Building land/plots prices are on a downward scale as are building costs and professional fees. Depending on location and district, building land has been reduced in prices by around 20%-35%, whereas building costs are either stable (since 2009) or even showing signs of a continuous reduction (of approximately 10%). So should you wish to buy a plot and build your own home now is the time. Having said that and unless you want something particular, reflecting your own    ... Read Article   Crucial Date 7th October 2011 - Building Amnesty 18/9/2011 IWe have reported in the past the parameters regarding the Building Amnesty. It cost nothing to fill a form and submit the same by 7.10.2011. Even if you do not have any illegality, but no certificate of approval, do it just in case if there is something wrong at the end of the day which you do not know. Our Protaras house was found that our dividing wall was intruding in the neighbor’s plot by .15 cm. This was found by the Lands Office after the issue of the certificate of approval. Strictly speaking in our case we should have demolished the wall and rebuild it .15 cm inwards. This was found out by the Lands Office upon land survey when  ...             Read Article

Economy + New Measures	11/9/2011
The Parliament has voted a number of new measures regarding the economy as a first step. As we have reported before in this column, this Government inherited a €700 mil. surplus to spend it all and within 2½ years, we have ended with a €2 bil. deficit. Our borrowing capacity shot up from 4½% spread to the recent level of 12%+ expected in future 17%, whereas unemployment shot up from 3% to 7%+ and rising. The measures taken were based on the Government first package of austerity measures and a second one is to follow over the next 15 days.                   Read Article

Nowhere to Hide??	4/9/2011
Looking at the going ons in the world, we wonder whether Cyprus is one of the more fortunate countries around, even after the Power Station explosion. The economic situation worldwide has surfaced many problems which were so far hidden under the carpet of prosperity of the local economies. For Cyprus the electricity station explosion brought up the incompetence of the various Governmental Departments and other authorities, whereas the economic downturn surfaced the real face of the (by name) “Communist” President and his group. An economy with a surplus of €700 mil. 2½ years ago, has gone into the red for over €2 bil. and its ...      Read Article

Greek Articles of the Month

Ασυνέπεια στις Αποφάσεις	25/9/2011
Στους δύσκολους αυτούς καιρούς που διαβαίνουμε και με το γενικά παραδεκτό δεδομένο ότι το κόστος εξασφάλισης στέγης δεν συνάδει με το εισόδημα του Κύπριου, είναι καιρός για αποφάσεις στην διευκόλυνση της εξασφάλισης της στέγης, μάλιστα σε χαλεπούς καιρούς μείωσης εισοδημάτων και παγώματος της αγοράς ακινήτων. Υπάρχει κατ’ εμάς μια ασυνέπεια στις αποφάσεις του Υπουργείου Εσωτερικών και των σχεδιαστών των πολεοδομικών κανονισμών, που διερωτώμεθα εάν οι αποφάσεις αυτές παίρνονται επίτηδες, δηλαδή στο να περιορίσουν την δυνατότητα αγοράς στέγης και να εξαρτάται πλέον ο Κύπριος στην επιχορήγηση    ... Read Article

Τα Όρνεα της Καταστροφής;	18/9/2011
Ολίγον μακάβριος ο τίτλος αυτού του άρθρου αγαπητοί μας αναγνώστες, αλλά η παγκοσμιοποίηση και το ρητό “θάνατος σου η ζωή μου”, φαίνεται να ισχύει και για την οικονομική κατάσταση της Κύπρου σε σχέση με τον ανταγωνισμό.                                       ... Read Article

Δήμαρχοι + Δήμαρχοι	11/9/2011
Εν όψει των επερχόμενων δημοτικών εκλογών και της πρόσφατης ανακοίνωσης των νέων τοπικών σχεδίων, ως επίσης και της προ πολλού αναμενόμενης καθυστερημένης της νέας Δήλωσης Πολιτικής, τα Δημαρχεία έχουν και πάλι σημαντικό ρόλο να επιτελέσουν στον τομέα ανάπτυξης των πόλεων. Η θέση του Δημάρχου είναι ολίγον παρεξηγημένη, διότι συγχύζεται γενικά από τους Δημότες με εκείνη την θέση του Προέδρου της Δημοκρατίας στο ανάλογο επίπεδο. Ενώ όμως ο Πρόεδρος έχει μια δική του πολιτική την οποία καταγράφει εκ των προτέρων και την εφαρμόζει, ο κάθε Δήμαρχος έχει μόνο ένα ψήφο στο Δημοτικό Συμβούλιο και      ... Read Article

Πρωτοβουλίες Ιδιωτικού Τομέα

4/9/2011

Ο ιδιωτικός τομέας στην Κύπρο υπήρξε πάντοτε πρωτοπόρος στην εξασφάλιση ενδιαφέροντος και προσέλκυσης ξένων επενδυτών/αγοραστών στην Κύπρο. Με την βοήθεια και οργάνωση επί εποχής Αυξέντη Αυξεντίου (τότε διοικητής της Κεντρικής Τράπεζας) με τις αλλεπάλληλες εκθέσεις και προβολές της Κύπρου στο εξωτερικό, όσο και με τους επόμενους διοικητές (πλην του τελευταίου) η Κύπρος βρέθηκε σήμερα να εισπράττει τις προσπάθειες του παρελθόντος. Είχαμε την τιμή να συμμετέχουμε σε αρκετές από αυτές τις προσπάθειες με αρκετό χρόνο και κόστος, που σήμερα κατέστησαν την Κύπρο ένα από τα πλέον σημαντικά κέντρα υπεράκτιων εταιρειών, δεδομένο το οποίο «διατηρεί» την Κυπριακή οικονομία σε ζηλευτά επίπεδα       ...     Read Article

Our News

• Πολεοδομική Αμνηστία / Building Amnesty
  Ο κ. Αντώνης Λοΐζου, έδωσε διάλεξη στις Τράπεζες Πειραιώς, Τράπεζα Κύπρου και ΣΠΕ Στροβόλου, επί του θέματος της Πολεοδομικής Αμνηστίας.
  
  Mr. Antonis Loizou gave a lecture at Piraeus Bank, Bank of Cyprus and SPE Strovolou on the Article - Building Amnesty.

• Επιστολή στον Υπουργό Εσωτερικών / Letter to Minister of Interior
  Ο κ. Αντώνης Λοΐζου έστειλε επιστολή στον Υπουργό Εσωτερικών, κ. Νεοκλή Σιλικιώτη ζητώντας παράταση για την Πολεοδομική Αμνηστία.
  
  Mr. Antonis Loizou sent a letter to the Minister of Interior, mr. Neoclis Silikiotis, requesting an extension for the town planning amnesty.

• Meeting with IMF
  The International Monetary Fund visiting team paid a visit to Antonis Loizou (of Antonis Loizou & Associates Chartered Surveyors). The team which is examining the Cypriot economy have had several meetings with Governmental departments, Banks, Unions and business people. This time the team wanted to have the picture of the real estate market and its affects from the local economic/global conditions, as well as details on the Cyprus Real Estate investors.
  
  During the 2 hours meeting at Messrs Antonis Loizou & Associates Nicosia offices on 6/10/2011, the analysis was in depth and a copy of the Real Estate Index 2010 was given to Mr McGrew, head of the research team. The two parties agreed to be in touch on a regular basis.
  
  Antonis Loizou said that it is a very good complement to be singled out of the hundreds of people dealing in the Building Industry to have such a discussion with the I.M.F. and he hopes that the Office can build on this relationship in future.
  
  Συνάντηση με το IMF
  Κλιμάκιο του ΔΝΤ θα βρίσκεται στην Κύπρο κατά την περίοδο 29 Σεπτεμβρίου – 12 Οκτωβρίου 2011, για την καθιερωμένη ανασκόπηση των οικονομικών εξελίξεων της κυπριακής οικονομίας (Article IV Consultations). Κατά την διάρκεια της επίσκεψης το κλιμάκιο έχει συναντηθεί με αξιωματούχους του Υπουργείου Οικονομικών, άλλων κρατικών υπηρεσιών και της Κεντρικής Τράπεζας της Κύπρου συμπεριλαμβανομένων του Υπουργού Οικονομικών και του Διοικητή της Κεντρικής Τράπεζας της Κύπρου. Έχει συναντηθεί επίσης με τράπεζες, εκπροσώπους των κοινωνικών εταίρων και άλλες υπηρεσίες.
  
  Ο αρχηγός της αποστολής κ. Wes McGrew είχε εκφράσει την επιθυμία να συναντηθεί επίσης με επιχειρηματίες και στον τομέα των ακινήτων, με σκοπό την συζήτηση των γενικότερων εξελίξεων και προοπτικών στον τομέα της επιχειρηματικής τους δραστηριότητας.
  Όπως είναι η καθιερωμένη πρακτική, το ΔΝΤ θα ετοιμάσει έκθεση για την Κύπρο η οποία θα συζητηθεί στο Εκτελεστικό Συμβούλιο του ΔΝΤ εντός του Νοεμβρίου 2011 και ακολούθως θα δημοσιευθεί.
  
  Την 7.10.2011 η τριμελής ομάδα του ΔΝΤ είχε συνάντηση με τον κ. Αντώνη Λoΐζου όπου συζήτησαν το θέμα της Βιομηχανίας των Ακινήτων και τις προοπτικές της.
  
  Ο κ. McGrew, αρχηγός της ομάδας ΔΝΤ, ευχαρίστησε τον κ. Αντώνη Λoΐζου για την εκτεταμένη ενημέρωση και συμφώνησαν όπως κρατούν επαφή για συνεχή ενημέρωση. Ο κ. Αντώνης Λοίζου παρουσίασε στο ΔΝΤ την 5η έκδοση του Δείκτη Αγοράς Ακινήτων προς δική του μελέτη.

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