DESPITE the general fall in sales and prices of property, the luxury real estate market in Cyprus seems to be weathering the crisis well according to the international property consultancy firm Frank Knight.
In its report “Cyprus Residential Development Prime market report 2012” Frank Knight says that, since the peak of the market, prices in the best second-home locations have held up relatively well, with prices falling by around 20%, while property prices in the secondary and tertiary locations have fallen by around 30% and 40% respectively.
The report points out that values in these second-home markets tend to be more volatile; rising faster in times of prosperity and falling sharper in times of austerity.
However, “Unlike the domestic housing market and the core second-home market, demand for the very top-end of the market has remained strong over the past couple of years”, says the report.
It goes on to say that “Estimates vary, but against a backdrop of falling prices across the country, values across prime markets have generally remained flat over the past two years. However, at some of the very top developments unit prices have risen by around 10% on average.”
According to Frank Knight, demand at prime developments is entirely driven by international buyers. The sub-€500,000 market is dominated by buyers from the UK. In the €500,000-€2m price bracket, the market is made up mainly of Russian and other European buyers, while the very top-end (over €2m) attracts buyers from Russia and other CIS countries.
Further reading
Cyprus Residential Development Prime market report 2012 by Knight Frank Residential Research.
An interesting animal, thanks for the clarifications. I expect this badger has superior qualities compared to myself, but I hope I stand up for such things as fair-play, justice and righteousness regarding the way the Cypriot establishment of bankers, lawyers, property developers and politicians have deceived investors on such a grand scale. I’m also an animal lover; I know animals would also enjoy the luxury accommodations available in Cyprus. If these badgers can be brought in to help out then I’m willing to go along with it!
@ Mr George & @ Mr Marktyler, This Guy is known as the African Honey Badger. It’s a a good critter to have on your side! Similar to the Red Army, who broke the back of the Nazi Horror. R.B.
@Marktyler There is a fearless animal in Africa which doesn’t respect its lack of size and strength and will attack anything, even Lions. It’s either brave or so arrogant that it always thinks it has a chance of winning. I’ve forgotten its name.
Might be useful if Russian buyers were to be treated with the same contempt as Europeans. One has a notion that the rule of law is not quite as generally well observed in Russia as it is in Western Europe. Cypriot developers, lawyers and bankers might then receive a knock on the door that turns out not be room service.
@Robert – no-one anywhere will get Title Deeds at point of sale or on the exchange of contracts.
They become available at legal completion, which in the UK is on delivery of the property or very shortly thereafter:
Legal Completion is the event when the ownership of a property transfers from one person to another legally. Usually this follows a receipt of full payment by the vendor and is the time at the new owner can now legally take possession of and move into their new home.
At Completion (in the UK)
The purchaser pays any outstanding costs such as Stamp Duty Land Tax and solicitors fees.
The purchaser’s solicitor registers the transfer of ownership at the Land Registry.
The process of issuing Title Deeds and legal completion in Cyprus, as we all know, can take many years. You can read more about the process and the timescales involved at Cyprus Planning Laws.
Robert
When laundering money title deeds are not even a consideration – they are of no consequence, they only matter to minions such as you and I and other hard working tax paying public. We must learn to accept that. Point taken however.
Robert i believe most of these properties have large plots so by definition the title does not need to be divided so much like in the case of an apartment complex. I might be wrong though I’m sure Nigel has a better picture.If they have been promised titles within a certain time frame I’m sure they will follow the developer very vigorously, unlike the Brits etc who prefer to follow the long drawn out legal polite route!
My other concern is that Russian investors see a home here a step in the right direction to achieving a European passport. This is definitely a bonus for them, but if Cyprus follows Greece out of the euro zone this perk follows it too. I expect this could have a knock on effect.
Do these upmarket properties have Title Deeds at point of sale / exchange of contract? Please inform. R.B.