Latest Headlines

‘Rents in free-fall’ say property owners

George Stovolides, the president of the Land and Property Owners Organization (KSIA) said it strongly opposes rent control legislation warning that it will create new distortions in the market.

IF WE want to see property ownership becoming a privilege of the few, then leave things as they are, said head of the Cyprus Property Owners’ Association Giorgos Strovolides yesterday.

During the association’s general assembly, Strovolides expressed deep concern for the future of the property market noting the flight of investors.

He warned that all the talk of legal regulation of rents and increased taxes was creating a negative environment for the property market and property owners who have seen a massive drop in rent revenue and the value of their properties.

Strovolides questioned efforts to reduce rents by law since owners have already voluntarily reduced rents by 50 to 60 per cent.

“Rents are collapsing and who is seeking protection? Not the owner, but POVEK (small shopkeepers union) and they are actually being heard by some,” he said.

What’s there to discuss when rents are in free-fall, he added.

Although legally regulating the rental market could actually halt the decline in rents, the association is in favour of letting the market and the laws of supply and demand set prices, said the association head.

Regarding the immovable property tax (IPT), he called for a simplified and fairer system of taxing property and recommended a uniform rate without any exemption and taxed per property, not per owner.

He further asked the government to clarify how much revenue it wanted to collect from this tax.

“What’s the target (on IPT), €100m, €150m, €200m?”

He suggested reducing capital gains tax from 20 per cent to 10 per cent, increasing the non-taxable amount, and abolishing transfer fees when there is VAT.

Strovolides also called for the abolition of tax on rents since landlords are the only ones who get taxed double in terms of income tax and the defence contribution they have to make.

“If what we want to see is property ownership to be the privilege of a few again, then we can leave things as they are. If we want to preserve the right to immovable property ownership, whether that is a residence, holiday home or investment, for the many then certain measures have to be taken in that direction,” he said.

He called for increased dialogue on the issue.

Rents in fre-fall says property owners chief

Readers' comments

Comments on this article are no longer being accepted.

  • Robert Briggs says:

    Due to the world wide reports and the horror stories now surfacing about the Cyprus property scene.

    No one is touching any property here with a bargepole, certainly not without Title Deeds, unless they are totally brain dead, (so what is the Cypriot Government doing about this disgrace?)

    Like it or not this is now reflected in the laws of supply & demand, hence the rents are now in free fall! RB.

  • cleo says:

    How much money do they want to collect? As much as possible I would think. There are signs that there are many people who are looking to buy or invest in Cyprus but are holding out to see if anything more drastic to occur. I think in time, after the dust from the recent banking debacle has settled, we will have all the answers. Transparency is what is expected from now on.

  • Mike says:

    Quote…”and property owners who have seen a massive drop in rent revenue and the value of their properties.” unquote. I wonder if anyone has stopped to consider that over a very short space of time property value and rental prices ballooned and exceeded rises seen in most other developed countries that without developed infrastructure, build quality and guarantees. It was inevitable that prices would need to self adjust and level out to reflect what they represent. In fact I would venture to suggest that they are still far too high given the overall environment and reluctance of the authorities to facilitate title transfer at point of sale, police planning regulation and malpractice and install transparency and accountability in the conveyancing process. Until such time that potential buyers feel protected then the status quo is the best that can be expected. It is all in the hands of the authorities and those of us who bought toward the high end of the market must accept that is the case.

  • Costas Apacket says:

    Maybe it’s time for people to get a proper job instead of everyone and his brother pretending to be a property developer because it delivered easy money?

  • The views expressed in readers' comments are not necessarily shared by the Cyprus Property News.

  • Text size

Back to top