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Estate agents upbeat about property prospects

Estate agents who took part in a recent survey are upbeat about the prospects for the Cyprus residential property market and expect the best year since 2008 although their opinions vary on the speed of the recovery in prices.

Estate agents upbeat about Cyprus property prospectsSTOCKWATCH carried out a survey recently in which it asked ten estate agents and valuers for their opinion on the prospects for the residential property sector. Although they agreed that 2016 will be the best year since 2008, opinions varied on the speed of a recovery in prices.

Half of those who took part in the survey expect property prices to stabilise at last year’s levels in 2016, while others anticipate that prices will recover following the downward trend since the property bubble burst.

The property sector appears to be recovering after many years of recession. The latest official figures from the Department of Lands and Surveys reveal that the number of property sales in Cyprus increased by 28% during the first two months of 2016 compared with the same period last year – and both the Central Bank’s Residential Property Price Index and the RICS (Cyprus) Property Price Index report a slowdown in price falls.

The estate agents and valuers believe that residential property prices have bottomed out and they do not expect to see further price falls in 2016.

Property valuer Polys Kourousides considers that that prices will stabilise in good urban areas, but added that property prices in rural and surrounding areas may see a small reduction.

Fox Smart Estate Agency chief, George Mouskides, who is also president of Cyprus Land & Property Owners Association (KSIA), believes that the situation is fluid as both positive and negative elements are affecting the market. He considers that it is more likely that while there is pressure to stabilise prices property sales will gradually improve but there is a possibility of marginal increases in prices

Andreas Andreou from APS Property considers that the value of apartments and houses will rise in 2016 and expects apartments to fare better than houses.

Speaking to StockWatch he said “I expect that Nicosia and Larnaca will see a relatively higher increase, followed by Paphos and Limassol. Famagusta will most likely be last as it is more affected by seasonality.”

Solomon Kourouklides of Buy-Rent-Property in Limassol, who is also the first vice president of the Cyprus Real Estate Agents Association, told StockWatch that the fact that Cyprus is no longer in an adjustment program, is encouraging for foreign and local investors.

Marinos Kynegirou of Marinos Kynegirou Estate Agencies and president of the Professional Real Estate Agents Association believes that stabilisation will continue through 2016. However, he did not rule out the possibility of price increases in more advantageous and commercial properties.

Andreas Andreou of Sabbianco Properties in Nicosia expects property prices to increase by up to 15%.

Speaking to StockWatch he said “In the first three months of the year, there is stabilisation with an upward trend. In houses, the increase is expected to reach 15% in 2016 while apartments show a different pattern as there are no good options for sale.”

Charalampos Petrides of Landtourist Estates, believes that prices of good properties in seaside areas will improve, while those in city centres will stabilise.

Koullis Talatinis of Rois Nicolaides Talatinis and president of Cyprus Realtors, also considers that prices of good properties and properties in seaside areas will increase, while those in areas surrounding cities will fall.

Paphos valuer Thomas Demopoulos of Axia Chartered Surveyors noted that the main consideration is the attitude of banks regarding bad loans.

Speaking to StockWatch he said “If there is a positive attitude from the side of the banks, the property market is going to recover” adding that those wishing to buy property before the end of 2016 will benefit from a reduction in Property Transfer Fees and Capital Gains Tax when they sell.

Photis Photiou of Photiou Estates in Famagusta, noted that the property market is improving and he expects that much of the growth will occur in Paphos and Famagusta.

Readers' comments

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  • Peter Davis says:

    @embabaphos

    I had the same problems when I went to pay for my title deeds and was told to go to Nicosia if I wanted to appeal the amount requested (Several thousand more than the purchase price). I was just being fobbed off.

    Wanting to go with ‘something’ I picked up my file from the end of the desk and walked out the room to cries of “You must bring that back” and “The file cannot leave the building” running (yes running) passed my wife and out of the building I found a photocopy shop close the Paphos Land registry where I copied the entire file, deposited the copies in the boot of my locked car I returned the original to the office. A deal was struck and I surrendered the copies.

    I still paid €400 more than the contract price but it was a lot less than they wanted.

    Sometimes you’ve just got to do it.

  • embabaphos says:

    @ P Davis, alas developers laughed all the way to the banks, on the backs of so many for so long, made the money and ran whilst not delivering.

    @Aggis, safe maybe but corrupt and mind bending joke of bureaucratic system for sure…..off topic went to ask for my hospital files to be copied, hmm no more than 10 a4 pages at a cost of 22euros…fair enough they want to make money prop up the flagging health and come back in in 2 days. I spent over 10 minutes arguing with her over this and could see an unused photocopiers in the vicinity ….in those 10minutes I could have copied 100 pages! safe yes, but the system drives you crazy for sure.

  • embapaphos says:

    Hmmm I wonder what agents fees are nowadays?, if there was anyone committing daylight robbery (in the good old days) it was them. I don’t accept the arguments heard in Cyprus to justify these exorbitant fees that were on the lines of “if you can sell it yourself then sell it” but again any estate agents reading this post be nice to see what ‘cut’ they ask for.

  • Tearing my hair out says:

    Everywhere these days is the “Safest”, “Friendliest” “Most desirable” etc, place to live (from Bangkok to Bristol). It used to be “he who pays the piper calls the tune” Nowadays – it’s “whoever commissions the survey – get’s the title”.

    Economics has little respect for surveys – something is worth what someone is prepared to pay for it – the end.

    We can argue on the best place to raise families all day long and into the night – again – the laws of economics will decide where is a hot spot and where isn’t.

    As for houses being for living in and not stock investments – I didn’t see many Cypriots (Greek or Turkish) holding back when it came to taking anyone’s money for ‘stock investment’ housing between 2000 and 2010. Did anyone else? Same story in London, New York etc.

    Time to make friends with economics – not sentiments – methinks.

  • Peter Davis says:

    “Just you saying it’s so don’t make it so” quote from Huckleberry Finn (Tom sawyer.)

    In the UK a check out girl noticed my tan, asking me where I was from I said Cyprus, Ho she replied “I hear that if you by a home there you never get the title deeds”.

    Developers thought they were being so clever, but now the word is out they’re not laughing any more.

  • Aggis Demetriou says:

    Cyprus being the second most safest country in the EU, it’s a lovely place to live and raise a family.

    Houses here are for living in and not stock investments.

  • Tearing my hair out says:

    @Sky

    People WERE conned by the developers (and the banks, and the lawyers, and the government, and the brokers).

    Economics is underpinned by supply and demand. It pegs the price of everything.

    Housing in Cyprus will be no different.

    Cypriot estate agents – no harm in manifesting positive change (but don’t expect miracles).

  • Pippa says:

    I am surprised that estate agents actually sell anything with their attitude. Of the seven so called agent I contacted none would even come to value my house, because it is in the mountains and to quote ‘it is a long way to drive there’.

  • sky says:

    One just has to look at the streets of Cyprus to see that there are thousands properties to let…Thus,
    Cyprus real estate yields are between 2 and 4%.

    Today’s most secure investment in indexes guarantees anyone a 4 to 6% yield.

    This means that, compared to today’s most secure investments (pre retirement type), Cyprus real estate is valued twice its value.

    I think people have got a hard time admitting they have been conned by developers playing on their greed and in the real estate craze/bubble.

    And this is, hoping that: economy (and employment) is actually recovering, that no further haircut is looming, that oil prices stay low, that SGOs are privatized, that the NPL issue is solved, and that Cyprus government is able to balance its budget with a bunch of international loans coming to term…

    Real estate agents should get the “economy 101” class before answering surveys…

  • Mike says:

    Has anybody ever in their lives heard a real estate agent ever not talk up the property sector. Prices are always on the rise next week, similar to car salesmen. Second to politicians I wouldn’t believe a word they uttered. However prices have to stabilise at some time but a 3 year old could work that out.

    My belief is that they are still far too high but only because of bad publicity, indecision, ineffectual protection for the consumer, lies or terminological inexactitudes which were designed to and have deceived the consumer, lack of infrastructure and a lack of environmental pride. I don’t think the degree of lawlessness has too much of an effect.

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