The Property Banks Cyprus Property News
Cyprus house prices up 9.1% year on year in May, Financial Mirror, Cyprus - 8 Jun 2007Residential property prices in Cyprus continued to rise for a fifth consecutive month in May 2007, recording a monthly increase of 1.8%, according to the BuySell Home Price Index prepared by Dr. Stelios Platis and Marios Nerouppos of MFC S. Platis.
The index reached 124.58 in May, compared with 122.44 in April, marking an increase of 9.1% increase over May 2006.
The BuySell Home Price Index, which adjusts for factors such as increases in quality, is the only house price index produced for Cyprus.
According to Financial Mirror calculations, the BuySell Home Price Index has risen on average by 9.3% year on year so far this year, compared with 5.9% for the whole of 2006. House-price growth is therefore accelerating.
BuySell reported that the “Average Home Price” in Cyprus according to the BuySell index was CYP 97,064 (EUR 166,610) in May.
The BuySell Home Price Index was created and is updated monthly on behalf of BuySell Cyprus Real Estate by MFC S. Platis. The Index is announced during the second week of each month and depicts the movement of prices at which residential properties are sold in Cyprus, based on the extensive BuySell Cyprus Real Estate database.
For more information on the methodology of the Index and on Hedonic Prices, refer to: The “Asking Price and Transaction–based Indices for the Cyprus Housing Market (Rebased)” by Dr. Stelios Platis and Marios Nerouppos of MFC S. Platis. F.M.
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Cyprus a "booming" opportunity for investors, Overseas Property and
Investment News, UK - 14 May 2007
Strong capital growth has helped
fuel British investment interest in Cyprus, according to a spokesman
from a property website.
John Reilly, managing director of Buy Abroad, said that the property
market in this popular European holiday destination is "booming"....
Strong capital growth has helped fuel British investment interest in
Cyprus, according to a spokesman from a property website.
John Reilly, managing director of Buy Abroad, said that the property
market in this popular European holiday destination is "booming".
A new airport and the presence of new budget airliners on the east
side of the island are helping to drive up capital growth and rental
returns," he said.
"With Cyprus, location is the key thing and if you want capital
growth rental returns, I would buy on the east side of the island,
around Larnaca," remarked Mr Reilly.
"Some people feel that prices have topped out a bit in the UK and
they want to buy in a market that has still got a lot of capital
growth and Cyprus is certainly one of those markets."
He also said that UK investors view Cyprus as a "safe place to buy"
because of its imminent adoption of the euro currency, the land
registry system and the fact that most people speak English.
Many experts believe that property investors are hoping to
capitalise on Cyprus' burgeoning British expatriate community in the
same way they did in Spain.
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Island of Aphrodite Is Breeding Opportunity, St.Petersburg Times.ru,
Russia - 24 May 2007
Business City Guyot, a company
that operates the four-star boutique hotel Guyot and a business
center in St. Petersburg, is to sell real estate abroad. Guyot, in
cooperation with Leptos Group and the General Consulate of Cyprus in
St. Petersburg, will sell residential real estate in Cyprus.
“We have created a new department that will sell real estate mainly
on Paphos. We signed a partnership agreement with Leptos Estates. We
have also signed an agreement with the Bank of Cyprus and a Russian
bank,” said Valery Zizenberg, president of Guyot.
Cyprus is the warmest country in Europe, with an average of 340 days
of sunshine a year, and high average per capita income, Zizenburg
said. Among other advantages of the island he evoked the time zone
in common with Russia and similarities in terms of religion as well
as the new international airport located in Paphos.
“You could buy property cheaper in Croatia or Bulgaria but you’ll
get a house in a country where it is winter for half the year,”
Zizenberg said.
Zizenberg praised the high quality and variety of property on sale
in Cyprus, including apartments, villas and townhouses.
Leptos Estates is the largest construction company in Cyprus. Leptos
Group also offers consulting, property management and maintenance
services.
George Gabrielides, director of Leptos Calypso Hotels, said that
Leptos established its office in Moscow 15 years ago and now has a
representative in St. Petersburg. The company offers property for
sale in Greece, Crete and of course in Cyprus.
Prices for real estate in Cyprus are similar to prices in St.
Petersburg.
“The price depends on the location. It could be located by the sea,
in the mountains, in town. However all the property is located in
condominium developments,” Gabrielides said.
Price for apartments start from $150,000, for villas from $250,000,
Gabrielides said. According to him, about 200,000 Russians visit
Cyprus every year. Some of them stay for up to three months. There
are three Russian newspapers and two Russian schools in Cyprus.
Among other advantages indicated by Gabrielides were the low cost of
living while the “standard of living is very high.” “A meal for two
with wine in a restaurant costs about $20,” he said.
Foreigners that own property could lease it out using Leptos as a
go-between. Foreigners can also get a mortgage from a Cyprus bank
for up to 70 percent of the property value. Gabrielides noted that
interest rates depend on the type of currency, though said that in
any case the figure is rather low — 3.5 percent to five percent a
year.
Gabrielides said that most Leptos clients come from Germany, Great
Britain and Scandinavian countries. Property buyers from Russia
account for only five percent of its clients. “But we believe that
Russians will buy more in the future,” Gabrielides said.
“I’m confident that cooperation between two companies as large as
Business City Guyot and Leptos will be successful. As General Consul
I promise that visa processing will remain as straighfoward as it
was before,” said Demetris Samuil, General Consul of Cyprus in St.
Petersburg.
“Cyprus is to enter the Schengen area, and owners of property in
Cyprus will automatically receive Schengen multiple visas and the
opportunity to travel across Europe,” Samuil said.
According to Polina Yakovlyeva, the head of Elite Real Estate at
Knight Frank St. Petersburg, imminent entry into the EU, as well as
causing property prices in Cyprus to rise, had attracted the
attention of foreign investors.
“The amount of private oweners registered in Cyrpus grew 40 percent
in 2006 compared to 2005 and 240 percent compared to 2004,” she
said.
Yakovlyeva said that Cyprus is the only island where fifty percent
of property-owners are Russian.
“The increase in demand can be explained by low taxes and low market
risk,” she said. At the same time, many Russians prefer to simply
rent property in the high season, she said.
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"Huge potential" in Southern Cyprus, Overseas Property and
Investment News, UK - 22 May 2007
The smart money is on Southern
Cyprus as investors realise the island's "huge potential", a
property specialist has asserted.
According to online agency UPAworld.com, the south of the country is
currently enjoying a property boom due to its "favourable"
investment opportunities....
The smart money is on Southern Cyprus as investors realise the
island's "huge potential", a property specialist has asserted.
According to online agency UPAworld.com, the south of the country is
currently enjoying a property boom due to its "favourable"
investment opportunities.
"It is no surprise that the intelligent money is flooding into
Larnaca [a city on the south-east coast] and the surrounding area as
investors realise the huge potential of the island," the firm
stated.
UPAworld.com believes that restrictions on overdevelopment,
investor-friendly taxation policies and Cyprus' imminent accession
to the EU are the main reason why foreign parties are increasingly
interested in the country.
Furthermore, high loan-to-value mortgages up to 90 per cent "make
this location one of the most desirable for foreign investment this
year".
In related news, John Reilly, managing director of Buy Abroad
believes that strong capital growth has helped fuel British
investment interest in Cyprus.
A new airport and the presence of budget airliners on the east side
of the island are helping to push up capital growth and rental
returns, he said.
Cyprus offers 'good capital growth',
Firstrungnow, UK - 8th May 2007
Cyprus offers property investors - which may include first time
buyers looking to invest - good prospects for growth, an expert has
claimed.
According to John Reilly, managing director of Buy Abroad, Cyprus'
eastern side offers the prospect of rental returns for investors -
which may include first time buyers - as a result of the expansion
of the nearby airport and the prospects for obtaining low-cost
travel to the island.
A number of airlines offer flights to Cyprus, including the
country's national carrier Cyprus Airways
"If you want capital growth … I would buy on the east side of the
island, around Larnaca," said Mr Reilly.
"It's a lot cheaper and a lot easier to get to than it was, say a
year ago," he added.
Investors look inland as Cyprus booms, Assetz
News, UK - 3 May 2007
The property boom in Cyprus continues apace, with the south seeing
plenty of demand from those keen to invest in property, both as
residents or in the buy-to-let sector. According to Les Calvert,
director of property website Property Abroad, the country has all
the attractions that Spain and other countries once had, but these
now exist in far greater quantity and quality on the Mediterranean
island.
It's a point worth noting, because some have predicted bad news for
the Cyprus property market. Recently, London Greek News, which cited
no quote or comment in support of its contention, claimed the
property market on the island was heading for a Spanish-style
decline because of over-saturation of development in certain areas.
However, Mr Calvert states, what is happening is that people are
actually moving from the most heavily developed places to new
locations, such as inland spots.
He said: "Paphos, places like that, prices are increasing on a year
by year basis. People looking to buy inland can pick up some
definite cheaper properties, and obviously the possibility of VAT
change on the land sales next year should help to push up the
housing demand."
Moreover, he added, the ex-pat appeal of Cyprus is now ahead of
other locations, which is helping drive demand as it provides "the
same sort of ex-pat community that Spain used to offer".
"For the last 12 to 18 months, we've had a surge on Cyprus, with all
kinds of different properties."
There are good reasons why the British in particular should boost
the property market, either as residential or buy-to-let, in
southern Cyprus.
"They speak the right language; they drive on the right side of the
road. They've got the likes of Monarch, one of the cheap flight
airlines flying in there. So it's becoming more and more accessible
for people buying in Cyprus."
As it happens, airlines are an issue that has been raised as another
factor supposed to dampen the market. New airport taxes introduced
in April are to rise in June and again in November. According to
Cyprus Mail, the International Air Carriers Association believes
Larnaca Airport will become the most expensive in the world as a
result.
Mr Calvert doubts this will harm the situation much: "Everywhere has
got airport taxes and it doesn't matter where you go now, there's
always some sort of tax…so I don't think it’s going to make a huge
difference."
Judging by other countries, including Britain, Mr Calvert may be
right. Taxation of flying is popular on environmental grounds, not
least, cynics might say, with governments counting the cash rolling
in. Lots of countries may tax flying, but not all countries can
offer sunshine and appeal to ex-pats.
Mr Calvert concluded by stating his view that over the next three
years, Cypriot property prices will carry on rising.
Plenty more share this view. Directly addressing the claim that
Cyprus will go the way of Spain, chartered surveyor Antonis Loizou
told the Cyprus Mail this week: "The first thing that buyers look
for is the country, with price being second on their wish list. If
we look at everything on an equal basis, Spain is more expensive
than we are, so I'm not worried."
Property law specialist George Couconis told the same paper: "If I'm
being honest, I kind of expected what's now happening in Spain. The
market there is tired," adding that plenty of UK estate agents were
promoting Cyprus and other countries rather than Spain.
The point made time and again by these experts is clear: Cyprus is
different to Spain. Different economically, different in terms of
what it offers and above all a market with plenty more lower priced
property available. On the basis of all this, one may feel confident
that if Spain sneezes, Cyprus won't catch a cold.
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Expert highlights "booming" Cyprus property market, London Stock
Exchange, UK - 2 May 2007
The property market in Cyprus is "booming" thanks to a growing
ex-pat community, according to new claims from a property export.
Les Calvert, director of overseas real estate firm Property Abroad,
claims that prices are increasing year-on-year for coastal
properties, while inland houses can offer some cheaper investments.
Furthermore, demand for residential housing from UK investors could
be set to jump higher because of the possibility of favourable
changes to the VAT charged on land sales, Mr Calvert remarked.
Explaining the current popularity boom, he said: "People are fed up
and they've had enough of Spain - they're looking further afield now
but with the same sort of ex-pat community that Spain used to
offer."
He added that the sunny climate, a proliferation of budget airline
routes and the fact that Cypriotes drive on the right-hand side all
add to the attraction of investing in Cyprus.
Investors in Cyprus can expect capital growth over the next 12
months to three years, Mr Calvert concluded.
The country is currently celebrating its third anniversary upon
entering the European Union.
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Aim for booming ex-pat zones in Cyprus, says expert, Overseas
Property and Investment News, UK - 2 May 2007
The property market in Cyprus is "booming", partly because of the
island's popularity with ex-pats, an expert has said.
According to Les Calvert, director of real estate firm Property
Abroad, Paphos, the main coastline, is proving popular with
investors due to rising property prices, although there are some
cheaper properties to be found further inland.
He said investors would do well to target area where there is a
large ex-pat community in Cyprus, where prices are on the up.
"Cyprus is the sunshine isle: 360 days of sunshine a year. So for
the last 12 to 18 months, we've had a surge on Cyprus, with all
kinds of different properties," Mr Calvert said.
He said that the south of the country is particularly popular with
ex-pats, because it is one of the most "British" parts of the
island.
According to Investors Provident, north Cyprus is not only
attracting tourists but Brits who are looking for a place to retire.
Cyprus cheap – but not cheapest – in global
holiday survey, By Leo Leonidou, 28th April 2007
CYPRUS is the third-cheapest euro zone country to holiday in,
according to a British survey looking at the price of ten holiday
commodities.
The total cost for the items (cup of coffee, Coca-Cola, bottle of
Heineken, bottle of Evian, Nivea sunscreen, postcard and stamp,
insect repellent, Marlboro Light cigarettes, English newspaper and
three-course evening meal for two in a local taverna) came to
£41.30.
Apart from the £25 bill for dinner, the sunscreen is the most
expensive individual item at £3.70, with the postcard and stamp
costing 62 pence.
Commissioned by the UK Post Office, all prices were compares in
British Pounds Sterling.
Portugal is the cheapest country with a total of £33.65 for the ten
items, followed by Greece at £41.06.
Traditional holiday hotspots such as Spain and France are almost
twice as expensive, while Turkey comes in at close to £45.
Worldwide, and perhaps due to a much lower cost of living than most
of the other destinations, Bulgaria proved by far the cheapest
country with a total shopping basket cost of just £16.86.
Egypt was the second most inexpensive, with Thailand third.
At the other end of the scale, the United States (Florida) is the
dearest holiday destination, with the ten items costing £69.41.
An iPod or PlayStation 3 will probably be cheaper to buy in the
States, especially given the dollar’s current low level, but the
index shows that travellers will have to fork out up to four times
more for items such as mineral water, beer, sunscreen and insect
repellent, than in emerging holiday destinations, such as Bulgaria.
“You have to be careful when comparing costs in different
countries,” said Kevin McAdam, head of travel services at the UK
Post Office, who commissioned the survey.
“It all depends on their relative cost of living and it pays to be
aware that favourable currency rates do not necessarily mean a
destination will be cheap.”
He said that the barometer proves that one currency does not mean
one cost.
“With a difference of £32.25 between the shopping baskets in
neighbouring Spain and Portugal, it is clear that there are savings
to be made depending on where you choose to holiday in Europe.”
The President of the Consumers Association said that it was good
that Cyprus compared favourably with its neighbouring countries but
said it was “disturbing” that Portugal is much cheaper.
Petros Marcou added that our tourist authorities, entrepreneurs and
hoteliers should take a close look at the findings, with steps taken
to ensure Cyprus is an enticing destination, with attractive prices.
New Flight deals improve access to Cyprus
Properties , April 21st, 2007
Sun Express, a privately owned airline company, established in 1989
between Turkish Airlines and German based airline, Lufthansa, have
now expanded their service to include flights from Stanstead to
Ercan on Tuesdays and Saturdays. This can only be good news for both
visitors and those living in Cyprus.
Tickets are available on line either one way or return, with prices
starting from as little as 79 Euros each way, at those prices
friends and family will be queuing up to visit your Cyprus property!
Their comprehensive website gives prices and availability, along
with special offers and details of baggage allowance, so you will no
excuse for over shopping to furnish your Cyprus property when you
return to the UK for a little retail therapy!
An ISO certified company offering in-flight entertainment with free
food and beverages, a little added competition to the flight market
servicing Ercan will surely benefit those with properties in Cyprus.
Moneycorp opens office in Cyprus, 17/04/2007
Moneycorp is continuing its ambitious international expansion with
the opening of a new office in Cyprus. The Cyprus property market is
proving to be one of the fastest growing property markets within
Europe, with people buying homes and real estate for investment
purposes.
The Cyprus office is Moneycorp’s fourth new overseas office in the
last two years. It will offer local clients and local-based
expatriates with a full range of services, including account
management, advice and support. It will allow Moneycorp to further
develop relationships with professionals in the Cyprus property and
migration sectors.
Vasilios Dimarakis, Head of Overseas Operations says, “The property
market in Cyprus has been something of a phenomenon in recent years.
The market is now showing stable but healthy growth with the promise
of more good things to come as the country prepares to adopt the
Euro currency on 1st January 2008”.
“By opening a new office in Cyprus we are able to provide local
support and assistance to vast expatriate communities and our local
referring partners. Overall, the expansion underlines our commitment
to fully capitalising on this growing market.”
Moneycorp is a trading division of the TTT Moneycorp Group, which
was established in 1979 and last year traded in excess of GBP7.5 bln
in currencies. The Company is part-owned by The Royal Bank of
Scotland Group and has been accredited to ISO 9000 quality assurance
since 1996, a unique achievement in the foreign exchange industry.
Moneycorp is the UK's leading foreign exchange company and provides
tailored foreign exchange services to help individuals save money on
their overseas currency transfers.
Southern Cyprus investors 'set to double'
05/04/2007 17:43, Realestate TV
Although foreign property firms have been underlining the benefits
of northern Cyprus as a property investment destination recently,
there remain plenty of reasons to invest in the south of the
country, it has been claimed.
Overseas property investment company Principal International said
that many Brits preferred the south of Cyprus even to France and
sometimes to Spain when it came to buying homes abroad.
The firm predicts that the number of British investors in the
country will double in 2007 thanks to English being widely spoken on
the island and tourism numbers growing each year.
Cyprus is a mature property market and offers homes that are still
cheaper to buy than in the UK, the firm advised.
It claimed that the island was a favourite with the retirement
community due to its low crime, high-quality lifestyle and stable
infrastructure, while buying property was "easy" thanks to the land
registry rules being broadly similar to those in the UK.
Cyprus was recently named among the top ten most profitable
destinations for buy-to-let investment by Assetz, offering total
returns on cash invested of 37 per cent.
Investors in Cyprus told to head north , 5th
April 2007, Assetz
Property investors in Cyprus need to look to the north of the island
rather than the south, Investors Provident have advised.
The small but beautiful country in the eastern Mediterranean is
becoming a boom area for investment in the overseas buy-to-let
market, offering the benefits of EU membership, warm weather,
sunshine and beaches, high inland mountains offering winter skiing
and an immensely rich heritage influenced by various civilizations
over thousands of years.
Yet all these benefits have brought a problem, according to
Investors Provident. The market in the south of the country has
become "saturated", says director Hetal Shah, who states that
properties in locations such as Paphos that were worth around
£25-30,000 two years ago now cost around £50-55,000.
With the popularity of the south having caused prices to soar as
development booms the best opportunities are elsewhere, or, to be
precise, in the north.
Of course, in Cyprus, north and south means something like east and
west used to in Germany. For Berlin read Nicosia, a divided capital
in a country split between Greek and Turkish parts. The analogy is
partial, of course - the country is at peace, albeit with the two
sides divided by a UN-patrolled buffer zone. Newsmax reported in
March that part of the dividing wall in Nicosia had been torn down
without any retribution and access between the two parts is far
easier to accomplish. Above all, the self-declared Republic of
Northern Cyprus is unrecognized by any government except that of
Turkey. However, the de facto two-state situation is real enough.
Attempts to formally reunify the country as it joined the EU in 2004
ended in failure.
Yet this situation is one which can benefit investors, says Mr Shah.
The north is "definitely" the place to go, he advises, offering
cheaper prospects and an escape from the tourist honeypots, with a
fully-furnished one-bedroom apartment available at around £35,000.
He said: "There's a lot more [property] to be had, it's a lot more
unspoiled than the south. The south has been very commercialised by
tourists, whereas the north has remained very untouched. It's a lot
more picturesque."
Being administratively outside the EU and therefore not subject to
the same laws, the risk is greater, Mr Shah notes, but it clearly
has an attraction to a niche market, namely the over-50s, keen to
escape the young 18s to 30s holiday crowd and the main source of
growth for the nascent northern tourist industry. Hetal Shah says
many holidaymakers actually start in the south and then head north,
where they can escape the "lager louts."
So the advice from the experts is clear. Across the divide there is
another Cypriot opportunity, one that enterprising investors should
pounce on. As Hetal Shah puts it: "It's definitely one place to
watch out for in the next three to five years."
The Lure of Property in Cyprus, March 30th,
2007
If you currently own property in Cyprus, then you are already aware
of the benefits it can bring you. If you are still looking at houses
for sale abroad, then why not consider the benefits of looking at
houses for sale in Northern Cyprus?
Recent reports show that with the increase of access points between
the North and South of the island, many British people who
originally brought Cyprus real estate in the South are now selling
and buying Cyprus real estate in the North. This is due in part to
lower house prices and living costs, which along with natural charm
and beauty of the area and its people, make houses for sale in
Northern Cyprus a tempting prospect.
Reports from SEK trade union indicate that over a two year period in
the South, petrol prices rose by nearly 60%, meat by 13.5% and
overall the cost of life index rose by over 8%, leaving many in a
situation similar to that in the UK whereby people were unable to
get a start on the property ladder.
While prices are rising in the North, they are still within a budget
that makes Northern Cyprus an attractive place for investment.
Tourism increases can only be good news for
Cyprus Properties, March 21st, 2007
Tourism in North Cyprus is set for a boost this year, both via
hotels and holiday homes in Cyprus.
The Turkish minister for tourism added his support to the
development of North Cyprus Tourism, revealing that his ministry are
prepared to provide incentives for airlines to lower their prices
and increase their services in order to attract more tourists, many
of whom visit to invest in property abroad.
Cyprus Turkish Airlines have announced that scheduled flights will
operate from Munich and Frankfurt airports from June until November
and charter flights to Frankfurt will be extended from May. This
benefits not just tourists to the island, but also people who
already own properties in Cyprus.
Kyrenia and the large Acapulco Hotel Resort also featured in a
positive presentation from the German press recently, where people
that own properties in Cyprus were said to be lucky to have found
such an idyllic area of the med.
Comments that Cyprus Turkish Airlines are in financial trouble and
are to be privatized were strongly refuted by its director last
week. CTA claim to have government support, but several parties have
recently declared interest in the airline, Pegasus Airline, known
for its low cost flights being one of them, whoever wins this fight
it will surely benefit Cyprus property owners?
Head for Sunny Cyprus, Investors advised, 14th March 2007, Assetz
Cyprus is one of the
best places for the buy-to-let industry to invest and will get even
better, according to an expert at property website Rightmove.
In its list of top locations for prospective investors, the site
lists a whole range of advantages to investing on the island. The
cost of living is low, the climate is warm. It has "an extraordinary
quality of life" and, if proof of its qualities were needed, the
buy-to-let market on the island is booming, offering "strong rental
returns".
The country will be "even more attractive" next year, it insists, as
January 2008 sees the country adopting the Euro as its official
currency.
So what does Cyprus really offer? The first and most obvious quality
is location; a Mediterranean climate on a Mediterranean island means
warmth in winter and beautiful sunshine in summer. The country has
numerous fine beaches, so those looking for sun, sand and surf
should be well rewarded.
Then there is the history of the island. Anybody remotely familiar
with it will be aware that the influences on life there do not start
or end with the Greek or Turkish culture of today. Human relics date
back to the bronze age, with Mycenaean, Phoenician, Egyptian,
Persian, Macedonian, Roman, Byzantine, Ottoman, Venetian and, of
course British influences all contributing to a long, rich and
varied history.
Given that these various civilisations have left their mark in a
myriad of archaeological relics, with many ruins all over the island
such as the pillars of Salamis near Famagusta, the buy-to-let market
may be able to rent out to tourists indulging a fascination with
history and culture as well as those who want to head for the beach.
The inland topography of the island includes the Troodos Mountains
in the west, which attract enough snow for skiing in the winter. All
this and there are plenty of wineries too.
This variety is evident from any tourist website, with Visit Cyprus
extolling the virtues of the island as anything but a one-trick
pony. "One island, a world of options," it says. If some islands in
the Mediterranean have a reputation for simply being a place to laze
on the beach, Cyprus is not among them.
Cyprus has been quick to press its case in the European property
market, at least if its presence at the Grosvenor Hotel in Park Lane
last week, reported in the Malta Independent, is any indication.
Given its many attractions, Cyprus may indeed be the place to invest
in 2007