Cyprus Real Estate News and Property Market Reviews

Cyprus still has an advantage over Europe concerning the potential growth rate of its economy despite the global financial crisis.

Speaking after a meeting with political party representatives and social partners, as well as government officers, to discuss the European Commission document on the future of the Lisbon Strategy, Minister of Finance Charilaos Stavrakis said that the challenge now is to maintain this “‘potential advantage” and the Ministry of Finance would be doing everything it deemed right to solve structural problems that have been to the detriment of society for many years.

He recalled that the potential rate of growth in Cyprus was historically around 4% and, due to the global crisis and the recession, it has dropped to 3-3.5%. He pointed out that ”the respective rate of the European economy is 2% and has now dropped to 1-1.5%.”

The Minister noted that the government has already presented a comprehensive package of proposals, which could solve the structural problems of the Cypriot economy, increase the growth rate and reduce unemployment, adding that some of the measures need more processing and approval by the House of Representatives.

Meanwhile, a recent study conducted by investment website Homes Overseas indicated that Cyprus is still a popular destination for those considering overseas property investments. The island offers bargain getaways that will help travelers escape the bad news of the current economic climate.

According to the Times, The country offers Mediterranean food and weather, advantageous tax laws, English language radio stations and the combination of being under five hours away by plane and a minimum temperature of 15 degrees Celsius, even in winter, makes the destination ideal for a holiday home for Brits.

Popularity: 6% [?]

A couple who invested in property in Kato Paphos, Cyprus has said they chose the region for its peacefulness and popularity with British people.

According to the Sunday Mail reports, Don and Christine Stark, who both work in the aviation industry, bought their home after a friend recommended they take a holiday on the popular island. They now preferred quieter holidays and wanted to invest in property that would give them a good return.

Mr. Stark said: “It’s a beautiful place – the scenery is stunning and the biggest plus point has to be the year-round sunshine. Our friend had bought property in Cyprus and had retired out there.

The couple found their dream home at the Paradise Gardens II development, with two bedrooms, an open-plan living space, a large garden for sunbathing and barbeques which boasts a communal pool and is a 15-minute walk from the harbor. The property is suitable to be rented out when the couple and their families are not staying there.

Meanwhile, another couple from UK, Robert and Adele Philliben told the Sunday Mail that they bought two one-bedroom apartments at the Arcadia Gardens development in Ayia Napa.

Robert told the newspaper: “We settled in Cyprus because it’s so popular with British people. The similarities of the legal system meant that buying wasn’t difficult and we thought we’d never struggle to rent out our property so that clinched it.”

Popularity: 10% [?]

There is a lot of doom & gloom in the Cyprus property market at the moment, there is every reason to believe that the Cyprus property market can come out of the credit crunch, in as good a shape, according to overseas property portal Property Abroad.com.

Les Calvert director of overseas property portal Property Abroad.com said:

“We have every reason to believe that the Cyprus property market will recover quickly as the international economic recovery gathers pace. There have been many problems with fraud over title deeds, and yes, now the economy has fallen into recession, but we have faith that things will recover pretty quickly once the international recovery begins, especially when there is economic recovery in key Cyprus markets like the UK.”

Les gave a reason for his strong belief in the Cyprus property market that the credit crunch will actually have a benefit. Because so many people lost money on developments that will never be completed, buyers are increasingly keen to do their own research. For that reason the problems that Cyprus has had with title deeds needn’t stop people from buying in the country.

The portal suggested that the rate of decline of property prices in Cyprus is now slowing every month. Slowly but surely it is reaching the bottom. The massive slide in Cyprus property transactions, especially those involving foreigners will have stopped by the end of this year. With more bargains available, investors are obviously keen to buy in the country at just the right moment, so it will, not only not lose any value, but stands to gain it very quickly as demand grows to normal levels once again.

As property prices in Europe’s most popular destinations grew immensely, Cyprus will become the inexpensive choice, and it is set to become one of the most popular destinations in Europe for British property buyers as it got the emerging market seal of approval celebrity golf course development.

Popularity: 11% [?]

There is every reason to believe that the Cyprus property market will come out of its economic woes, in a good shape as foreign buys of Cypriot property saw a shock increase in November, up from 117 the month before to 158.

When sales traditionally slide off at this time of year, the highest number of monthly sales this year is what more interesting to the analysts. It is highly unlikely to be a pure coincidence that this rise in sales against the season comes as the government and Cypriot legal institutions have been working hard to resolve the problems over Cyprus title deeds.

New legislation from the Cypriot government promises to allow people to get their deeds issued from the land registry, from the moment they pay the deposit and sign the sales contract. This will stop developers from selling to multiple people.

Les Calvert director of overseas property portal Property Abroad.com gave a reason for his strong belief in the Cyprus property market that they believe strongly in the Cyprus property market, because the credit crunch will actually have a benefit. Because so many people lost money on developments that will never be completed, today’s buyers are increasingly keen to do their own research. For that reason the problems that Cyprus has had with title deeds needn’t stop people from buying in the country.

Meanwhile, Cyprus’ new golf courses and proposed 2nd Eurodisney are one of the few reasons to believe that Cyprus property has a bright future. The Cyprus government gave permission to build 14 new golf courses on the island; permission was granted last year and construction has started on one of the courses.

Popularity: 14% [?]

Larnaca will soon benefit from a new international airport that can handle up to 7.5 million people annually with a provision to extend this to nearly 10 million when the need arises.

Cypriot President Demetris Christofias opened the new Larnaca terminal, built by a consortium of French and Cypriot companies, at a ceremony attended by French European Affairs Minister Pierre Lellouche. He said that this will boost flagging tourism and boost prospects of it becoming a regional transport hub.

Larnaca airport now has double the capacity to handle passenger traffic with The 100,000 square metre high-tech terminal which is four times larger than its predecessor, just a couple of kilometres away on the island’s south coast. The construction took three years at a cost 656 million euros in what is one the largest infrastructure projects ever undertaken in Cyprus. Flight operations from the new airport began, with Cyprus Airways and easyjet flights only and become fully operational from November 17. Officials hope the new airport will also attract foreign investment to Cyprus.

In a bid to attract more tourists and promote Cyprus as a regional service centre, an upgraded airport in Paphos, on the west coast opened last year at a cost of 127 million euros and is able to manage 2.7 million passengers a year.

Popularity: 15% [?]

Cypriot economy is expected to grow again next year, it has been claimed, something that could interest those seeking property on the island.

According to Finance minister Charilaos Stavrakis, in the end of 2009, the country will see an economic contraction of 0.5 per cent, but stated that GDP will rise by the same amount in 2010, AFP reports. Meanwhile, Interior minister Neoclis Sylikiotis commented that ” Property investment is much safer in Cyprus than anywhere else”, adding that regardless of the world economic crisis and the problems of neighboring countries, “the housing sector in Cyprus is quite healthy and still in positive growth rate.”

The country looks on course to be the sole member among the 16 countries in the bloc to record positive economic growth in 2009, RTE reports. Although the economy slowed in the first quarter of the year, the report said: “Satisfactory growth rates of both construction and the wider services sector limited the extent of this deceleration.” Such reports may interest those thinking of investing in the country, as may the interior minister’s pledge that new building and registration rules will be introduced to further enhance the sector.

In related news, George Mouskides, Chairman of the Association for the Promotion of Property Development said that the situation in Cyprus will begin to become more positive and this, according to all visible signs, will first and foremost influence the property sector.

Popularity: 17% [?]

Building permits for the construction of 900 residential properties were authorized in August 2009 in Cyprus; down just 3.3% on the 931 authorized in August last year, according to official reports.

According to the Figures released yesterday by the Cyprus Statistical Service (CYSTAT), the number of building permits authorized by the Municipal Authorities and the District Administration Offices during August 2009 was 578 which provided for the construction of 900 dwelling units. The total value of these permits reached €153.8 million and their total area 176.6 thousand square meters.

5,897 building permits were issued during the period January – August 2009; an increase of 5.1% compared to the corresponding period in 2008. The total value of these permits increased by 7.2%, while their total area decreased by 6.0%, reflecting a shift away from the construction of low value/low quality dwelling units to the construction of higher value properties.

Property Index, which specializes in overseas real estate, stated that Cyprus is still a popular location for UK property investors, beating rivals such as Greece and Egypt.

They revealed that investors are increasingly focusing on cheap real estate bargains within the island’s low-priced market.

The firm says it believes that Cyprus has “plenty of potential” for new investors and that a range of forthcoming golf course developments will help boost the tourism industry during the global economic downturn.

Popularity: 18% [?]

Cyprus has been touted as the perfect place to buy property and buyers could find a bargain after recent property price falls of up to 40 per cent, it has been suggested.

According to a Daily Mail feature, Cypriot residences can now be acquired in cheaper prices and a two-bedroom apartment in paphos with a sea view comes for £81,000. Editor of Cyprus Property Magazine Nigel Howarth said prices are now back at 2004 levels.

Those keen to invest in property at a bargain cost may find now is the ideal time to do so as The Cypriot property market is one of the best that anyone can invest in, Interior minister Neoclis Sylikiotis commented that some media coverage of the country’s market has been unnecessarily negative, the Financial Mirror reports.

Rather, he countered, ” buying properties is much safer in Cyprus than anywhere else”, adding that despite the Global economic crisis and the problems of neighboring countries, “the Cypriot housing sector is quite healthy and still in positive growth rate.”

Such comments may interest those thinking of buying properties on the island, as may the minister’s pledge that new building and registration rules will be introduced to further enhance the sector.

In related news, Cyprus will see its economy grow again next year as Finance minister Charilaos Stavrakis told reporters that over the course of 2009 the country will see an economic contraction of 0.5 per cent, but stated that gross domestic product will rise by the same amount in 2010, AFP reports.

Popularity: 19% [?]

Owners of rental accommodation in Cyprus could be set to see greater demand in the next 12 months as a budget airline has begin operating a new route between UK and Cyprus.

Monarch has started running its twice-weekly service between Larnaca and Birmingham Airport from March 2009. The move further enhances the ease of access to Cyprus, which could the Mediterranean island a popular choice for holidaymakers in summer. Furthermore, the improved connectivity could enhance the appeal of Cyprus among foreign property investors, particularly lifestyle buyers in the West Midlands.

Liz Savage, managing director of Monarch, commented: “I am sure that the people of the Midlands will warmly welcome the introduction of this service.”

According to Travel and Tourism News, the Mediterranean island is increasingly being seen as a year-round holiday destination. As a result, more and more people are choosing to visit at various times of the year, including during the winter.

This has led to growing interest in the Cypriot market among lifestyle buyers and rental investors. “Many choose to spend extended holidays in their properties, visiting several times a year,” said Travel and Tourism News.

In related news, Thomas cook said that the island offers “guaranteed sunshine”, therefore allowing investors to earn money from rent all year round. The country is still an attractive option for many British holidaymakers, as it is “as popular as ever”.

Popularity: 20% [?]

Cyprus could be the only EU member state to see growth in 2009 and the Mediterranean island state is working on alternative measures to combat fallout on its economy from the world financial crisis, according to reports.

According to the EU’s spring economic reports, The Cyprus economy would grow 0.3 per cent in 2009 and 0.7 for 2010. This compares to negative growth rates forecast in all of the other 26 member states, ranging from -9 per cent in Ireland – with even worse predictions for some Eastern European countries up to -0.9 per cent in Malta and Greece.

Joaquin Almunia, European Monetary Affairs Commissioner speaking after the European Commission issued downwardly revised economic forecasts and Growth rates would only turn modestly positive in the second half of 2010.

Commenting on the situation in Cyprus, he said that in view of the ongoing global crisis, economic growth was expected to slow significantly in 2009 “but still remain in positive territory, domestic demand should continue to drive growth.”

Government officials stressed that the Cypriot banking system is sound and the government pays special attention to its tourism and the construction industry in particular. Kyriakos Karaiskakis, manager of Lartis Developers Ltd said that Cyprus has plans to woo potential buyers from Russia, Iran and other countries.

The government offered assistance to the construction industry in late 2008 with a EUR 25 mln stimulus package and in recently Cyprus has the highest rate per population in the EU, with the housing stock expanding by 30% in the past decade. The Central Bank of Cyprus is also confident that the economy as a whole and the financial system will both weather the current global economic crisis.

Popularity: 69% [?]