Our January 2018 newsletter provides an overview of the Cyprus property market and the Cyprus and the Global economy
View Issue 89, January 2018 in your browser Past Issues: Cyprus Property News

Issue 89, January 2018

CB upgrades projections for GDP growth

Central Bank of CyprusThe Central Bank of Cyprus has upgraded its projections for the growth rate of the Cypriot economy, citing the course of public finances and tourism.

In its financial bulletin for December 2017, the CBC said the Cypriot economy will grow by 3.8%, compared with 3.1 in the June bulleting. In 2018 GDP growth is projected to grow by 3.4% (from 3.2% in the June bulletin), whereas growth is projected to decelerate slightly to 3.2% and 3.1 in 2019 and 2010 respectively.

Unemployment will reach 11.5% in 2017 and will decline to 9.8% in 2018, while the jobless rate will fall to 8.2% and 7.0% in 2019 and 2020 respectively.

Full Article StockWatch, 21 December 2017

 

NPLs remain problematic says IMF

Cyprus Central Bank“We have clearly a strong economic recovery but that has not produced the reduction of NPLs that someone could have expected and certainly that reflects the weak payment discipline,” Guzzo told the 5th Cyprus banking forum.

Despite three years of GDP growth after the 2013 crisis, Non-performing Loans amount to 46% of total loans in the Cyprus banking system, placing the island second after Greece in the EU.

Guzzo noted that strategic default, borrowers who have the capacity to repay their loans but refrain from doing so, is associated with the lengthy inefficient procedure in enforcing legal claims and also “a perceived blanket protection of primary residence.” He also referred to the World Bank’s data, according to which contract enforcement takes 1,200 days in Cyprus, while foreclosures take 10 years, which is the longest in the EU.

Full Article  Cyprus Property News, 17 December 2017

 

Reduced VAT on property purchase

As from the 1st of October 2011, a reduced rate of 5% can be imposed on purchasing or construction of a dwelling in Cyprus, as long as the dwelling is used as the principal and permanent residence in the Republic by the beneficiary.

The reduced VAT rate of 5% applies on the first 200 square meters of the buildable area of the dwelling. In cases of large families (minimum of four children) the total area of the dwelling is enhanced by 15 square meters per each additional child (over three children).

Download the Information Leaflet from the Tax Department (pdf)

Legislation (in Greek)
Νόμος 95 (I)/2000 (pdf), Ν.119(I)/2016 (pdf) |

Circulars (in Greek)
E.E.210 (pdf), E.E.212 (pdf)

VAT will be applied on all building land and fields (with some exemptions) as from 1st/2018. The matter is not clear at this point of time but the 19% VAT is a high charge (be it that we expect that there will be no transfer fees in such cases). We will revert.

 

Co-op aims at NPL reduction enabling €300m IPO inflow

The state-owned Cyprus Cooperative Bank is increasing its efforts to reduce its delinquent loan portfolio and so maximise the potential inflow from the capital increase scheduled next year as investors maintain a wait-and-see stance, two sources said.

“Our official goal is to raise €200m but we will aim for €300m,” a co-op source familiar with the matter said in a telephone interview on Thursday.

The bank, over 99 per cent of it government owned and recapitalised in 2014 and 2015 with almost €1.7bn, is working on a listing on the Cyprus Stock Exchange to prepare for an initial public offer (IPO) next summer. In order to attract both institutional and strategic investors, the second largest Cypriot lender appointed in September Citigroup as global coordinator of the capital increase.

Full Article  Cyprus Business Mail, 21 December 2017

 

Cyprus Economy & Property Market

Global Property Market & Economy

‘World’s longest pipeline’ MoU signed:
06/12/2017, Financial Mirror
Officials from Cyprus, Greece, Israel and Italy have signed a memorandum of understanding to plan a 2,100 kilometre underwater pipeline linking the natgas-rich offshore Leviathan field directly to Europe, boosting equities on the Tel Aviv Stock Exchange prior to the deal.

Government considers €1bn bond issue in 2018
21/12/2017, Cyprus Business Mail
The Public Debt Management Office (PDMO) said Thursday the government may issue a euro medium-term note (EMTN), or Eurobond, of up to €1bn next year.
The security is expected to cover up to two-thirds of the government’s financing needs next year, estimated to reach up to €1.5bn, the PDMO said in a statement on its website.

Cyprus Records €0.9 Billion Trade Deficit
18/12/2017, Gold News
The euro area recorded a €18.9 bn surplus in trade in goods with the rest of the world in October 2017, while at the same time, Cyprus recorded a negative trade balance of 0.9 bn, according to data released by Eurostat.
The first estimate for euro area (EA19) exports of goods to the rest of the world in October 2017 was €187.9 billion, an increase of 8.8% compared with October 2016 (€172.6 bn).

Property Sales in Cyprus
Year To Foreigners To Locals Totals
2000 450 12214 12664
2001 1207 12849 14056
2002 2548 14111 16659
2003 3991 15294 19285
2004 5384 11947 17331
2005 6485 10106 16591
2006 8355 8598 16953
2007 11281 9964 21245
2008 6636 8031 14667
2009 1761 6409 8170
2010 2030 6568 8598
2011 1652 5366 7018
2012 1476 4793 6269
2013 1017 2750 3767
2014 1193 3334 4527
2015 1349 3603 4952
2016 1813 5250 7063

2017(Oct.)

1840 5357 7197

Cryptocurrencies could be 'just mining the public,' gold producer CEO says
22/12/2017, CNBC
Cryptocurrencies like bitcoin may be all the rage, but when it comes to storing your money, Agnico Eagle Mines CEO Sean Boyd told CNBC that they still pose some unaddressed risks.

Lagarde Defends IMF's Brexit Forecasts After Experts Dismissed:
20/12/2017, Bloomberg
Christine Lagarde defended the International Monetary Fund’s gloomy predictions about the impact of Brexit, saying the economy’s slowdown over the past year shows those warnings were correct.

Global house price index sees lowest rate of annual growth since start of 2016:
27/12/2017, Property Wire
House prices in key cities around the globe increased by 5.1% in the 12 months to September 2017, down from 6.3% in the second quarter of the year and the lowest rate of annual growth since the start of 2016.

Properties sold to Foreigners only

District

2017 (Oct.) 2016 2015 2014 2013
Nicosia 119

131

96 90 92
Limassol 626

611

394 290 267
Larnaca 301

335

292 234 130
Famagusta 139

109

86 125 83
Paphos 655

627

481 454 445
TOTAL 1840

1813

1349 1193 1017
Source:
Department of Lands and Surveys:

Total number of properties with registered contract of sales by foreign buyers

 

Real Estate Sales in Cyprus

District

2017
(Nov.)
2016 2015 2014 2013
Nicosia 1158

1031

749 748 709
Limassol 2635

2496

1566 1417 1049
Larnaca 1159

1360

1072 794 604
Famagusta 459

436

324 330 241
Paphos 1786

1740

1241 1238 1164
TOTAL 7197

7063

4952 4527 3767
Source:
Department of Lands and Surveys:

Total number of registered contract of sales

Articles in English that you might have missed

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Buyers By Nationality & Historic Analysis

26/11/2017

Buyers By Nationality & Historic AnalysisThe post 3/2013 disaster, has brought about a change of the rental scene of real estate. Between the period 2013-2015 very little number of buildings were developed causing nowadays some sort of shortage for most type of investments. This coupled with the beginning of a revival of the economy (2015) and the availability of finance, caused an increasing demand (be it very slow) for purchasers of real estate. However demand for purchase is still low and this has caused demand to be directed from purchase to ... Read Article

 
First and third line beach properties and other matters

19/11/2017

Cyprus beach houseThe Cyprus beach development-coastline is the only one which is reducing dear readers. If one is 50 or 100 mts away from the beach as long as it has a pedestrian access to it, will not matter so much. So as the beach line is being developed, so is the value of such beach properties/houses/ buildings are going up in value. This sort of situation will become even more evident for first beach line properties be it with a Governmental land between the on the first line properties and the beach, as opposed to those at the ... Read Article

 

Hope for Big Real Estate Investment in Cyprus?

12/11/2017

Hope for Big Real Estate Investment in Cyprus?The new Minister of the Interior has announced last week that he is introducing an “one stop shop” which will deal with large scale real estate investments (over €5.0 mil.). This office/shop will be managed by a project manager, whose responsibility is to keep a close watch and follow up the procedures regarding planning applications and issue of permits. Read Article

 

Structural Conditions of Buildings in Cyprus

05/11/2017

Structural Conditions of Buildings in CyprusWe have an increasing number of appointments, in order to carry out structural surveys of buildings, mainly houses under/recent construction and this is the result of shoddy work in a number of projects/buildings. Structural defects refers to the structure of the building, which, if it is left to escalate, it will cause more damage, than the initial damage, creating serious problems later on, including safety problems. Read Article

 

 

Articles in Greek that you might have missed

 
Τόκοι και Αποδόσεις

26/11/2017

Τόκοι και ΑποδόσειςΟ δανειστικός και καταθετικός τόκος πάντοτε συγκρινόταν και συσχετιζόταν με τις αποδόσεις από επενδύσεις στην αγορά ακινήτων. Οι επενδυτές ακινήτων είναι διατεθειμένοι να αποδεχθούν μια απόδοση χαμηλότερη από τους καταθετικούς/ δανειστικούς τόκους, λόγω της ανατίμησης (αύξησης) των τιμών των ακινήτων. Όσο πιο γρήγορα αυξάνονται οι τιμές των ακινήτων, τόσο πιο χαμηλή ήταν και η αποδεκτή απόδοση στα ακίνητα. Έτσι στις «καλές» εποχές των ετών 2002-2008 μια μέση απόδοση σε ενοίκιο της τάξης του ... Read Article

 
Η πιο χαμηλή προσφορά;

21/11/2017

Η πιο χαμηλή προσφορά;Λόγω των ενστάσεων που είναι πλέον ρουτίνα σε προσφορές του Δημόσιου/ Ημιδημόσιου τομέα σχετικά με προσφορές υπηρεσιών, οι όροι ζήτησης προσφορών θέτουν ως όρο ότι «η ανάθεση θα βασίζεται πάνω στην πιο χαμηλή προσφορά». Ως εκ τούτου και χωρίς να αποτελεί πλέον κριτήριο η γνώση, η εμπειρία και η προϊστορία του προσφοροδότη, η προσφορά κατακυρώνεται στον πιο «φθηνό». Read Article

 

Άδειες εξπρές για ανάπτυξη;

05/11/2017

Άδειες εξπρές για ανάπτυξη;Ο νέος Υπουργός Εσωτερικών ανακοίνωσε κάποια μέτρα για την μείωση του χρόνου αναμονής έκδοσης άδειας οικοδομής κλπ. Εκείνο που προτείνει είναι η ύπαρξη «ενός γραφείου» με υπεύθυνο χειρισμού (project manager) που θα τρέχει το θέμα και τους φακέλους, θα ενημερώνει συνεχώς τον αιτητή και γενικά να φροντίσει όπως η άδεια οικοδομής (εκτός προβληματικών υποθέσεων) εκδοθεί εντός περιόδου 12 μηνών τώρα, με στόχο 6 μήνες στο άμεσο μέλλον. Read Articles

 

Η Μακαρίου (Λευκωσία) θα επανέλθει;

01/11/2017

Διαδήλωση διαμαρτηρίας για τα δένδραΗ άνθηση και η καταστροφή του πλέον εμπορικού δρόμου της πρωτεύουσας (λεωφόρος Μακαρίου) είναι γνωστή. Τα ενοίκια των €40/τ.μ. για τα καταστήματα του έτους 2010 πέρασαν μια συνεχή κατιούσα πορεία, με την λεωφόρο αυτή να αποτελείται από κενά καταστήματα (2012) και σιγά-σιγά (έτος 2016/2017) άρχισε να αναβιώνει σε κάποιο βαθμό, με ενοίκια γύρω στα €15/τ.μ. Παρόλες τις προσπάθειες του Δήμου με διάφορα μέτρα και εκδηλώσεις, δεν πέτυχαν σε ψηλό βαθμό και φαίνεται να ... Read Articlee

 

Διαβατήρια & Άλλα Μέτρα

24/10/2017

Κυπριακό ΔιαβατήριoΗ αγορά ακινήτων πολύ σπάνια αναγνωρίζεται ως μια βιομηχανία που είναι η δεύτερη πιο μεγάλη για την Κύπρο, μετά τον τουρισμό.
Το θέμα των διαβατηρίων/βίζων κλπ, μας προβλημάτισε προ καιρού και αρθρογραφήσαμε επί του θέματος, ότι η αγορά άρχισε να εμφανίζει σημάδια συμπεριφοράς εκτός ελέγχου, μη αποκλειόμενης και μιας νέας φούσκας για αυτού του είδους τα ακίνητα και ιδιαίτερα σε περιοχές όπως η Λεμεσός, όπου η τεράστια πλειοψηφία των έργων αυτών απευθύνεται σε ξένους ...  Read Article

 
Office News & Activitiess
  • The economic situation has caused social problems between families. Over the recent years we were asked to produce various reports regarding real estate issues between couples at the family courts – Very sad.

  • Untidy buyers are now faced with all sorts of red tape problems including non-deposit of the sales contracts, problems regarding assignment of sales, contracts, common expenses dues etc.

  • On the occasion of Mr N. Shacolas birthday, the crème of the Business community attended a dinner at the Hilton Park. A doer of the Cyprus economy and despite his age he is still going strong – All the best.

  • The long delays that are experienced in litigation procedures, causes side effects including not remembering on a number of occasions the circumstances that existed 6-8 years ago!

  • We were interviewed by two U.K. national newspapers through their local corresponding journalist regarding the Cyprus real estate situation and its prospects. The fear of a bubble in real estate is not fully forgotten and their readers want to be reassured about the future.

  • The tourist boom has attracted the attention of high end goods sales with the more recent being the opening of a high cost furniture store at Limassol and a fashion shop at Pafos – at very high rents.

  • The new business of setting up real estate investment funds is appearing more often. In addition to banks, private firms are creating similar funds having a budget of around €10 mil.(+) with a 5 year exit.

  • Year 2018 could be one of the most interesting ones for Cyprus’ real estate. The matter of passports, the absorption of the supply regarding the high cost properties, the operation of the new skyscrapers and the law regarding the common expenses are some of the items which we will watch closely.

 

 

Featured Properties for sale in Nicosia

Strovolos

Ag. Omologites - Eng. School

Aglantzia

4 Bedroom Detached House in Strovolos for sale, Nicosia

3 Bedroom whole floor apartment in Agioi Omologites for sale

3407m² Commercial / Residential Plot in Aglantzia for sale

4 bed House €875,000
Covered 310 m²
Covered Verandas 40 m² 
Plot 660 m²
Maid's ensuite house

Apartment Building 2,100,000
Covered  1,092 m² + Basement
Geothermal C/H, VRV
Wired network
throughout
3 whole floor apts for €700,000 each

Res. / Com/cial Plot 750,000
Plot 3.407
Planning Zone EB5
Coverage  50%, Build 120 %
Maximum Floors 3

 

Featured Properties for sale in Limassol

Agios Athanasios

Limassol Marina

Panthea

5 Bedroom Villa in Agios Athanasios for sale, Limassol

3 Bedroom beachfront Apartment in Limassol Marina for sale

Building Plots for Sale in Panthea, Limassol

5 bed villa €1,300,000
Covered 380 m²
Plot 1,098 m²
Swimming pool 5x10 m
Maids quarter

3 bed Apartment €1,500,000
Covered  135 m²,
Beachfront
Panoramic view of the marina

2nd floor of Thetis complex

Residential  Plot €280,000
Plot 634 m²
Planning Zone Ka9
Coverage  25%, Build 40 %
Maximum Floors 2

 

Featured Properties for sale in Famagusta

Protaras

Protaras

Cape Greco

Three Bedroom Villa in Protaras for sale

Two Bedroom Apartment in Protaras for sale

Cape Greco Tourist Plot in Protaras for sale

3 bed Villa €452,550
Covered 219m²
Covered Verandas 16m² 
Plot 274 m², 300 m from beach
Under construction, 2019

2 bed Apartment 300,000
Covered 83
Uncovered 8
Resale, 2014
Second line to the sea

Building Plot €975,000
Plot 4.878 m²
Planning Zone Tourist PK
Coverage 20%, Build 20%
Maximum Floors 2

 

Featured Properties for sale in Paphos

Neo Chorio

Kato Paphos

Armou

3 Bedroom beachfront Villa in Neo Chorio for sale

2 Bedroom Luxury Apartment in Kato Paphos for sale

5,086 m² Residential Field for Sale in Armou

5 bed Beach Villa €695,000
Covered 168 m²
Covered Veranda 17 m²

Uncovered 60  m²
Plot 602 m²
Beachfront

2 bed Beach Apt 1,980,000
Covered 182
Covered Verandas 29
Resale, 2014
Beachfront

Exclusive, gated development

Residential Field €375,000
Plot 5.086 m²
Planning Zone P1,
Coverage 15%, Building 15%
Max Floors 2
With Road, Water, Electricity

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Company Profile

Antonis Loizou & Associates is a professional firm of Chartered Surveyors offering valuation, estate 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 35 years. The firm employs 35 members of staff across 6 offices in Cyprus and is the leading real estate advisors for corporations, finance houses, as well as the local government and individual members of the public. About us Subscribe  Forward

 
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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.ru

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