Where are the property prices going dear readers? Are we aiming for the equivalent of the Kolonaki area in Athens, the Marble Arch in London, or even the N. York’s Central Park?
We have noted in the past the fast rising of prices in property, but in this article we would like to concentrate on the seaside areas of the free Republic’s lands. We could offer some form of excuse for the high prices as far as Limassol is concerned, where there is a large concentration of offshore business and wealthy Russian buyers. Could it be that, us locals, have not appreciated yet the value of our beaches? Should we perhaps carry out a survey of comparable beach properties in the Med, so that we will come to know the comparative prices? These, mainly foreign buyers, who buy beach property, must have examined comparative localities elsewhere and we expect that they then compare us with our competitors, such as Spain, South of France, Italy, Portugal, Greece etc, since we cannot understand why the sudden influx of top income buyers (beach property is sold in terms of millions for beach housing properties, who they themselves (the buyers) are quite delighted for their buys”).
Of course the problem that this foreign demand has/is creating is that the locals will have no beach land of their own, since, with a mathematical precision, it will be bought by the foreign market. This high property beach prices push upwards near the beach prices and it has a domino effect. Another indicative craze, is the 30 years old Dhasaki refugee housing estate, next to St. Nicolas British Base, which sells now mainly to the British market at £800/m²!!
Of course we will not suggest a restriction in the foreign buyers, but we are worried on the effects that this will have on the house prices for the locals and especially for the younger generation, as well as for the lower income groups. At the Kolonaki area in Athens (top expensive residential spot) sales apartment prices are now at £3,500/m² (we have recently heard of a unique spacious apartment project for sale at £7,000/m²!!), whereas Marble Arch prices are in the region of £5,000/m² gross. A British client of ours told us that “I cannot understand why your beach units should not reach the £5.000/m² figure, since Cyprus is so much nicer” – he just bought a beach front flat at the Phoenicoudhes area of Larnaca from us, for £1,100,000 (or £3,200/m²). It did not surprise us then, when a Russian lady bought, again, from us, a house on the Dhekelia road for £2.0 million (or £5,700/m²) despite our advice to the contrary. In fact we were “told off”, since for her it was a “dream house” and we should learn how others look at Cyprus and not judge local prices by our own local standards!! She may be quite right since, who are we to know, being part of a minute country of only 700,000 people, as compared with a country of endless wealth, of 250 million people.
Should we then all rush towards these “golden” beach areas and make our fortune in the near future? What can we say, we don’t know, because we are lost somewhere between local reality and foreign/imported facts.
By Antonis Loizou, FRICS
View the original article at: Is It Possible – £3,000/m²?
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