BIG ISSUE CYPRUS
Property Sales to Overseas Buyers - 2012/2013 Comparison Area
Nicosia 2012 Nicosia 2013
Famagusta 2012 Famagusta 2013 Larnaca 2012
Larnaca 2013 Limassol 2012
Limassol 2013 Paphos 2012
Paphos 2013
Total Sales 2012 Total Sales 2013
Jan 5 5
16 1
13 11
23 22
49 33
106 72
Feb 28 13
10 2
22 13
25 20
31 59
116 107
worth nothing. What’s happened here can happen to them. “The safest investment is still real estate. We have people ready to buy real estate but many of them can’t get money out of the banks. “Still, demand has increased for us at this point. We are getting a lot of people who want to secure their funds and who feel more comfortable having it in real estate. “We’ve had good budget properties come up recently, because people need the funds or have been pressured by the banks to pay the mortgage.
“We’ve seen prices drop 5-10% but things are settling down now – improving, in fact. We’re waiting for the banking restrictions to be lifted but we’re getting a lot of enquiries. “As well as the Hong Kong conglomerate we’ve got French companies looking to open casinos and Greeks and Spanish looking to open marinas.
What about the future? “Within the next 2-3 years, Cyprus will be producing oil. Once that happens, Cyprus will get itself out of this mess. We feel that Cyprus, over the next five years, will start booming again. Anyone buying now is getting a bargain.
“Our new government is pro- investment. The last government
08
Mar 26 4
5 7
22 7
24 14
52 40
129 72
Apr 13 2
18 24 17
23 35
7
36 61
119 117
82 222 26 108 20 69 23 84 32 77 28 102 77 172 86 172
May 28
15 34 63
Jun 20
21 12 29
Jul 6
9 17 17
Aug 6
15 17 23
Sept 6
12 10 17
Oct 8
15 15 36
Nov 14
34 18 29
Dec 18
12 23 33
took us backwards, not forwards – but the new group is orientated to bringing in more investors. “It’s like Rothschild said: ‘The time to buy is when there’s blood in the streets.’ That’s the situation in Cyprus at the moment. Once things settle down we feel things will improve tremendously.”
How do you expect prices to change in the coming years? “I expect prices to stay relatively stable, with maybe a small decline in the next six months. Next year we project a 5% increase, going up to 7% the following year and 10% in the third year. By the fifth year we think prices will have risen 20-25%. Cyprus will boom again.”
THE DEVELOPER’S VIEW As we mentioned previously, the luxurious Aphrodite Hills resort was where OPP stayed whilst visiting Cyprus. The resort, which includes what Loucas Kitrou (Real Estate Manager of the company) asserts is one of very few truly profitable golf courses, was stunning, with each business (the villa developments, hotel, golf course, spa, etc) operating separately and turning its own profit. We spoke to Mr Kitrou about how the crisis had affected his business and the island.
What have been the effects on your business?
“When it comes to the leisure side of the business, the crisis only had a short term effect. Obviously, the banks being frozen affected tourism temporarily – but I think it is now largely back to normal. “Real estate-wise, we’ve been affected slightly more in the long term. When the banks froze wealthy investors’ assets, the investors were forced to postpone decisions and payments. Nevertheless, I have not lost any existing clients, including those purchasing off-plan.”
How have the Cypriots reacted? “People of my generation have been through a lot. We grew up with much less, especially after the Turkish invasion.
“In the last ten years we have lived beyond our means. This is a wake- up call and I think it will help in the way the younger generation grows. “In Spain and Greece, the reaction to financial crisis was huge and violent. Here, there has been no such reaction. We see it as something we have to get through.”
What of the future?
“People will continue to buy in Cyprus for lifestyle, business and investment purposes. They will, however, keep their funds
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