Cyprus Real Estate News and Property Market Reviews

Domestic property sales in Cyprus are strong with growth so far this year in double-digits however the recovery in Cyprus’ beleaguered overseas property market appears to be slow.

According to the latest figures published by the Department of Lands and Surveys, domestic sales of property in Cyprus during the first seven months of this year increased by 21% over the same period in 2009 with 4,100 contracts being deposited this year compared to the 3,396 deposited last year in contrast with the 0.3 percent fall in sales to overseas buyers.

However, Cypriot buyers deposited 630 contracts of sale at Land Registries throughout Cyprus during July compared to the 652 deposited during July 2009; a fall of 3.4 percent. The largest increase in demand this year is Paphos (up 27.2 percent), followed by Limassol (up 24.7 percent), Nicosia (up 23.3 percent), Famagusta (up 13.1 percent) and finally Larnaca (up 11.8 percent).

In more good news, budget airline Ryanair stated that it has not ruled out launching flights to Cyprus from the UK, which would be good news for anyone with property in the nation.

Chairman of the Association for the Promotion of Property Development George Mouskides said that matters should now improve in the coming months as the world economy begins to recover. 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: 19% [?]

Rather than capital appreciation prospects or proximity of home country to determine overseas property investment, it could be wise to let personality and temperament sway the decision.

According to Shelter Offshore, Personality could determine a person’s happiness in their chosen overseas property relocation, claims one website for those looking to move abroad. Those seeking a quiet life full of peace could find themselves happiest in France. Alternatively a calm but adventurous spirit could love living in Turkey.

The website stated that if property investors are not impressed by both Turkey’s call of adventure or France’s laid-back attitude appeal, then Cyprus offer the best for a more young at heart personality. The property portal claims Cyprus is perfect for those looking for an active social life and some fun while enjoying a great climate.

According to propertywire.com, most people think of Cyprus as a Mediterranean hotspot. However, the island can also boast skiing for four months of the year between late December and early April and is home to the annual Federation Internationale de Ski giant slalom, along with other competitions. The slopes are located around the village of Troodos, which has hotels, restaurants and facilities for skiers of all levels. For holidaymakers caught between skiing versus sunbathing, the country offers an opportunity to experience the best of both worlds.

Martin Pearce, sales director at Aristo Developers, said that Cyprus has a very strong reputation as a favorite choice with those seeking a second home or holiday property as it is quite simply because use and enjoyment of such a property is not limited to a brief summer season period.

Popularity: 22% [?]

Property professionals across Cyprus are preparing for a tough year ahead, in common with the UK and their other European neighbors. However, there is also rise in property enquiries.

According to the Cyprus Central Bank in its six-monthly bulletin reports, prices had decreased by 8% during 2009, although they predicted that they will remain stable throughout 2010. A spokesman for the Central Bank said that the “drop in housing property prices coincides with the weakening of construction activity in 2009.” The most recent Land Registry figures stated that the total sales for 2009 amounted to just over 8,000, compared with around 14,500 in 2008. Property experts agree that the market has been severely affected by a sharp drop in demand from foreign buyers.

However, the good news is although in 2009 saw an unprecedented drop in first-time enquiries, those who had delayed visits to look at property were starting to visit again this year, although in far smaller numbers than before the downturn. It seems that those who are keen to buy in Cyprus are sticking with it during the tough times.

Prospective buyers may be interested to know that, despite the economic recession, the Cypriot government is still investing in infrastructure. Property investment in Cyprus is of course depends on buyers circumstances, their lifestyle and what they want from their property in Cyprus. Buyers are naturally benefiting from the downturn as sellers offer significant reductions, particularly to cash buyers.

Popularity: 24% [?]

Rather than capital appreciation prospects or proximity of home country to determine overseas property investment, it could be wise to let personality and temperament sway the decision.

According to Shelter Offshore, Personality could determine a person’s happiness in their chosen overseas property relocation, claims one website for those looking to move abroad. Those seeking a quiet life full of peace could find themselves happiest in France. Alternatively a calm but adventurous spirit could love living in Turkey.

The website stated that if property investors are not impressed by both Turkey’s call of adventure or France’s laid-back attitude appeal, then Cyprus offer the best for a more young at heart personality. The property portal claims Cyprus is perfect for those looking for an active social life and some fun while enjoying a great climate.

According to propertywire.com, most people think of Cyprus as a Mediterranean hotspot, However, the island can also boast skiing for four months of the year between late December and early April and is home to the annual Federation Internationale de Ski giant slalom, along with other competitions. The slopes are located around the village of Troodos, which has hotels, restaurants and facilities for skiers of all levels. For holidaymakers caught between skiing versus sunbathing, the country offers an opportunity to experience the best of both worlds.

Martin Pearce, sales director at Aristo Developers, said that Cyprus has a very strong reputation as a favorite choice with those seeking a second home or holiday property as it is quite simply because use and enjoyment of such a property is not limited to a brief summer season period.

Popularity: 24% [?]

Property investors considering the northern part of Cyprus have been advised that they should take time to understand the entire property buying process in Northern Cyprus before they enter the marketplace which will avoid any potential issues relating to land disputes; furthermore they will save themselves a great deal of time and effort that is so often wasted by investors unsure of what it is they are looking for or looking at!

Paul Owens, Chief executive of the Association of International Property Professionals commented: “You need to do your homework, do your research and make sure you take independent legal advice to make sure you are buying what you think you are buying.”

The Mediterranean island destination is unique for property investment as it is with thousands of years of history, a perfect year round climate, stunning natural beauty and yet it has remained untouched by mass development and mass tourism because the island of Cyprus is divided and until recently Northern Cyprus was effectively unreachable. Theprices have risen by up to 50% but still they remain up to two thirds cheaper than prices in southern Cyprus. Investors are aware that this disparity will not remain forever and that now they are buying into great potential for substantial property price growth.

The more good news is Northern Cyprus has a plethora of spectacular castles, natural harbors and a view of the Turkish coast on the horizon. Rental investors and developers are entering the market in large numbers for letting to tourists and for sale to expatriates, retirees and those looking for a holiday home in the sun.

Popularity: 25% [?]

Moody’s has downgraded the deposit and debt ratings of the Bank of Cyprus and the Marfin Popular Bank. They downgraded the deposit and debt ratings of Marfin Popular Bank Public to Baa2/Prime-2 from A3/Prime-1 and Bank of Cyprus Public to A3/Prime-2 from A2/Prime-1. Moody’s has confirmed the deposit and debt ratings of Hellenic Bank Public Co Ltd at Baa2/Prime-2.

The report stated that the country’s real estate market, which is a significant component of the banks’ loan books, remains a risk area with unclear growth prospects and weak demand.

Cypriot government approved the creation of a Financial Ombudsman, offering a cheaper and more simplified option of dealing with economic disputes. Consumers can apply to the Ombudsman to seek out-of-court settlements on disputes with financial institutions (FI). In good news for property investors, Consumers will be able to submit complaints of a financial nature and the Ombudsman can mediate and arrange a friendly out-of-court settlement.

In General, consumers will be able to seek compensation without having to go through exhausting court procedures. However, if consumers wish, they can turn to court. Ionas Nicolaou, The Legal Affairs Committee chairman said if there were any problems in its implementation, amendments would be made.

In more good news for investors, foreign interest in the Cyprus property market is showing signs of a recovery with sales during the first half of 2010 up 9.6% on last year. According to figures released today by the Cyprus Department of Lands and Surveys, A total of 231 property sale contracts in favor of foreign buyers were deposited at Land Registries throughout Cyprus in June 2010, compared to 201 in June 2009; an increase of approximately 18.5% compared to last year.

Popularity: 14% [?]

Aristo developer has signed an exclusive deal with one of Norway’s largest agents in hope of cashing in on growing demand from Scandinavian buyers. Norsk Megling will endorse Aristo Developers’ stock in Cyprus, alongside its existing portfolio of homes across Europe, the US and Brazil.

Panayiotis Michaelides, the firm’s marketing manager said that Aristo has seen growing interest from the Scandinavian market over the last four months, He said that Norway’s economy has been particularly resilient during the financial crisis with a relatively shallow recession and moderate increase in unemployment. Aristo has been selling to Scandinavian buyers for the last eight years, and has had an affiliate office in Stocholm for four years.

He commented: “Our exclusive partner, Agnar D. Carlsen, managing director of Norsk Megling, strongly believes the same as we do – Aristo and Norsk Megling joining forces can achieve quite good results under the given circumstances. We are now about to launch some new signature projects and we need to empower our position on these markets, Norway and Sweden being the two countries we believe have great potential for further growth.”
Aristo developers have begun a new marketing strategy separating its existing stock from its new luxury projects. Panorama Residences in Pissouri was launched in an attempt to attract buyers from the high-end of the market . Aristo is also awaiting government approval on ‘Venus rock’ project as it will be the biggest the island has ever seen. it is intended to be a €1 billion project covering around 10 million sq.m. of land.

The two developments are to be marketed separately from the company’s other products, which are aimed at mid to low-end buyers and now referred to as ‘Aristo Classic’.

Popularity: 17% [?]

Cyprus officially declared out of recession in the first quarter of 2010 contrary to earlier estimates showing a sixth consecutive quarter of decline.

According to the latest data from the Statistical Service Cystat, The revised data show that GDP in the first three months of the year rose in real terms by 0.1% over the previous quarter, having declined by 0.3% in the fourth quarter of 2009. However, the early flash estimate published in May estimated the GDP to have declined by 0.2% over the previous quarter in the Q1 and by 0.8% in the Q4.

According to the revised figures real GDP decline compared with the previous year was milder as a result of these revisions. Cystat reported that there was positive growth in banking activities and certain other services sectors, as well as improved relative performance in tourism, distributive trade and industry.

In good news for property investors in Cyprus, the island’s Central Bank said that Cypriot economy is expected to contract by 0.5 percent in 2010 but rebound in 2011 with growth of 1.3 percent. The Central Bank in its semi-annual report said its latest forecasts were in line with an expected drop-off in domestic demand and a slowdown in construction and tourism this year. Its previous forecast, issued in Dec. 2009, had Cyprus registering growth of 0.3 percent this year and 1.8 percent in 2011.

Popularity: 17% [?]

The tourism sector in Cyprus was marking a sound recovery following a dip during the global economic downturn and an increase in holidaymakers from Germany helped Cyprus tourist arrivals grow by 14.8 percent in March from a year earlier – the first rise in 15 months, according statistical data.

The news is a welcome boost to a tourism-dependent economy still battling to come out of recession in the face of the economic woes of its main northern European tourism markets. Foreign tourist numbers showed a strong increase of 15 per cent in March 2010 over the same month of 2009, Arrivals were 103,803 against 90,434 in March 2009, the report said. There was a 5.7 percent increase in arrivals from Britain, the island’s largest source of holidaymakers, and a 20.1 percent improvement from Germany
Nearly 20.1 per cent of the foreigners who visited the Mediterranean island were Germans, followed by British tourists with 5.7 per cent. There was a 5.7 percent increase in arrivals from Britain, the island’s largest source of holidaymakers, and a 20.1 percent improvement from Germany However, the central bank warns the recession in Europe has taken its toll on the Mediterranean holiday island whose economy contracted by 1.7 percent in 2009 and may register negative growth again this year.

Noel Josephides of Sunvil Travel and former chairman of the association of independent tour operators (AITO) told the Financial Mirror that Cyprus continues to be an expensive destination, so all this is left to do is to improve the product and promote it hard.

“This is a good time to clean up whatever is wrong in Cyprus and improve on the infrastructure, ” he added.

Popularity: 16% [?]

Cyprus has long since been a popular holiday destination for British tourists, possibly because the Mediterranean island has the required Englishness. Over 300 days of sunshine a year and 600 km of coastline lured the Brits over the years and they have flocked to the island for both business and pleasure.

According to Bulgarian daily Dnevnik, the tourism sector in Cyprus was marking a sound recovery following a dip during the global economic downturn. Foreign tourist numbers showed a strong increase of 15 per cent in Match 2010 over the same month of 2009, or more than 103 000 to last year’s 90 000. Local authorities hoped that the trend would continue all over 2010. Tourism arrivals in Cyprus saw their best monthly increase in years in March, as arrivals of tourists rose by 14.8% over the year compared with March 2009. The Statistical Service reported that an increase of 5.7% was recorded in tourist arrivals from the United Kingdom.

Property expert Derek Watkins said that increasing tourism in Cyprus and a reputation for attracting repeat visitors, a buy-to-let investment in Cyprus is still a great bet than that of emerging markets such as Bulgaria because Cyprus is a natural market, according to cyprus4investors.

In related news, Dani Maxton, of Morpheus Investments suggested that Cyprus looks set to become an even more popular tourist destination and introduction of low fare flights will open up the island to more potential second-home buyers.

Popularity: 18% [?]