Cyprus ranks 12th in residence program index

Nigel Howarth
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Cyprus ranks 12th in residence program index

Cyprus ranks 12th in the 2024 Residence Program Index published by Henley & Partners with a score of 59 out of 100.

The index comprises the residence programs of 26 countries and considers 10 factors including Reputation, Quality of Life and Investment Requirements.

The top spot is taken by Portugal, which scores 75 out of 100.

Second place is shared between Austria and Greece, both of which score 73

In third place, with a score of 72, is Switzerland.

Fourth place is shared by Italy and the UK, both of which score 71.

Canada and Spain share fifth place with a score of 69.

Cyprus residence by investment program is in 12th place with a score of 59 and is followed by Latvia with 58, and Malaysia with 50.

Mauritius and Namibia are in equal last place with a score of 49.

For further information and analyses visit The Henley Residence Program Index 2024

Dr. Christian H. Kaelin, international immigration and citizenship law expert and Chairman of Henley & Partners, says Investment Migration Programs 2024 is essential for all those interested in keeping up to date with developments in the investment migration sector or considering residence or citizenship by investment as options for unlocking global access and opportunity.

“The publication is important not only for private clients and their advisors and other wealth management professionals, but equally for government policy makers looking to manage investment migration programs to achieve greater fiscal autonomy and economic growth. In this era of heightened global volatility, nation states are using residence and citizenship by investment programs as an innovative financing tool to fund national or regional social and infrastructure projects as well as development initiatives that mitigate sustainability risks, to the benefit of their citizens and residents.”

(As Cyprus’ Citizenship-by-Investment scheme, aka Golden Passports scheme, was “definitively and irrevocably terminated” in November 2020, it does not feature in Henley’s 2024 Citizenship index.)

For further information and analyses visit The Henley Citizenship Program Index 2024

 

Glamping bill back on government agenda

Nigel Howarth
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Glamping bill back on government agenda

The bill proposing the establishment and management of up-market “glamping” campsites, which has been lingering in Parliament for nearly a year, is being reintroduced to the Plenary by the Parliamentary Committee on Tourism.

During a review of the bill, postponed since July 13, 2023, the committee decided to present it to the full House at the next session.

At the same time, a committee session with Deputy Minister of Tourism Kostas Koumis was scheduled to review potential amendments to the bill.

The original bill, submitted by former Deputy Minister of Tourism Savvas Perdios, was rejected by Parliament in the summer of 2022.

Despite minor revisions, the bill has been pending a vote since July 2023. However, during the Ministry of Tourism’s budget presentation, Deputy Minister Kostas Koumis advocated the advancement of bills related to luxury campsites and visitable farms, emphasizing their importance for tourism development.

Subsequently, it was reintroduced with minimal changes, leading it back to the Plenary, but its voting remained pending since July 2023, with no developments until today.

The proposed glamping bill

The proposed bill aims to update regulations governing the establishment and operation of tourist campsites under the Hotel and Tourist Accommodation Regulation Law. Key provisions include:

  • Introducing new categories of wheeled vehicles that can be used for accommodation purposes in tourist campsites.
  • Introducing regulations concerning the creation and operation of up-market “glamping” campsites.
  • Classifying tourist campsites into categories, namely luxury, Class A, Class B, and unclassified, in the same manner as other categories of tourist accommodation.
  • Modernising specifications for the classification of tourist campsites and introducing specifications for to classify them as “glamping”.
  • Making it a criminal offense to use the term “glamping” without holding an operating license as required by the proposed law.
  • Obliging “glamping” campsites to operate with a focus on environmental protection, flora, and fauna conservation of the area in which they operate, and to adhere strictly to the management plans of the “Natura 2000” network and other protected areas.
  • Ensuring that the European “EU Ecolabel” for “glamping” campsites is obtained within twenty-four months of receiving their first operating license.

Limassol topped the Cyprus property market in January

Nigel Howarth
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Limassol topped the Cyprus property market in January

Ask Wire, a Cypriot real estate analytics firm, has released a report on the ten most expensive property transactions in Cyprus for January 2024.

The top ten property sales across the island during January amounted to €14.3 million, with the most expensive transaction involving land and a building in Potamos Germasogeias, Limassol, which fetched €2.97 million.

In addition, the report revealed that the total value of the 50 largest sales for the month amounted to €34.4 million.

Limassol emerged as the dominant player, with five transactions in the top ten. Limassol was followed by Larnaca and Paphos, each contributing two, and Nicosia with one.

The total value of property transactions in each district:

  • Limassol – €7.54 million.
  • Larnaca – €2.68 million.
  • Paphos – €3.1 million.
  • Nicosia – €990,000.

Breaking down the top property transactions by district:

  • Limassol – €11 million.
  • Paphos – €7.7 million.
  • Larnaca – €7.3 million.
  • Nicosia – €5.5 million
  • Famagusta – €2.8 million.

The significance of Limassol’s real estate market as underscored by the fact that the top ten transactions in the city alone accounted for 32 percent of the total value of all sales, indicating its prominence in high-value real estate transactions.

The combined value of the ten most expensive properties sold in Paphos in January slightly surpassed that of Larnaca.

Pavlos Loizou, CEO of Ask Wire, offered insights into the findings, noting, “It is evident that the high-value real estate market had a moderate start in the first month of 2024.” He further pointed out that “positions 7 to 10 represent transactions valued below €1 million,” indicating a broad spectrum of sales.

Loizou also highlighted the competition between Larnaca and Paphos in this property category, suggesting that the dynamics between these districts will be intriguing to watch and concluded by saying “it remains to be seen if Nicosia will climb the ranks”.

KEPIDES threatens pay up or we’ll auction your home

Nigel Howarth
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2
KEPIDES threatens pay up or we’ll auction your home

The Cyprus Asset Management Company Ltd (KEDIPES) has sent letters to a number of home buyers ‘inviting’ them to pay eye-watering amounts of money, otherwise it will auction their homes.

This may not seem unusual applying the principle “if you can’t pay, we’ll take it away”.

However, there’s a fundamental problem that KEPIDES appears to have overlooked (or perhaps conveniently ignored.)

The home buyers are not and have never been in debt. Those I have spoken to paid for their homes in full and deposited their Contracts of Sale at their local Land Registry office more than a decade ago.

As they’d not received the Title Deeds to their homes, they applied for them under the provisions of the ‘Trapped Buyers‘ law. (At that time, they must have provided the Land Registry with irrefutable evidence that they had paid for the homes in full and had fulfilled all their contractual obligations to the vendor.)

Has KEPIDES made an unfortunate and regrettable mistake, which has caused these home buyers considerable stress and anguish?

Having read the letter from KEPIDES, it’s the people who own the company that sold these homes that owe the money; not the people who bought them!

KEPIDES is pursuing the victims of a scam perpetrated more than a decade ago by unscrupulous individuals operating a company that sold the homes.

Visit the KEPIDES website

I invite readers to visit the KEPIDES website, where they will find the following statements:

“The company’s goal is to effectively manage assets in a manner that will lead to a sustainable restructuring of loans in cooperation with borrowers. When this proves to be impossible, alternative methodologies are employed such as auctions, liquidations, or sale of assets….”

Why is it ‘inviting’ home buyers who are not borrowers and who are debt free to pay huge sums of money to prevent their homes being auctioned?

“KEDIPES operates with integrity, honesty, sincerity and fairness at all levels that govern the framework of its operations.”

Really??? Is the company operating ‘with integrity, honesty, sincerity and fairness’ by ‘inviting’ debt-free home buyers to pay someone else’s debt or face the prospect of losing their homes?

It comes as no surprise that the Cyprus Asset Management Company Ltd (KEPIDES) is also known as a bad bank.

I wonder if KEPIDES has thought through the consequences of its planned actions?

RICS/KPMG property price & rental index Q4 2023

Nigel Howarth
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0
RICS/KPMG property price & rental index Q4 2023

The 57th quarterly publication of the RICS Cyprus Property Index with KPMG in Cyprus records the property price and rental index, tracking property and rental prices across all Cyprus districts and main property types.

Speaking on behalf of KPMG in Cyprus, Christophoros Anayiotos, Head of Real Estate Industry Group, commented, “The upward trend in Cyprus Property Index continued during the fourth quarter of 2023, with Paphos taking the lead in recording overall increases.

“The best performing asset class is again Apartments, followed by Houses, with the highest increases being recorded in Paphos, Larnaca and Limassol. Warehouses and Offices recorded marginal increases, with the best performers being Paphos for both categories.

“Retail recorded zero increases, with a large drop in Larnaca. Rental values showed increases, with holiday apartments and residential sector properties (apartments, houses) taking the lead. All in all, the Index shows positive returns for the residential and holiday properties, supported by a resilient demand during 2023”.

Speaking on behalf of RICS, Simon Rubinsohn, RICS Chief Economist, said, “Real estate continues to perform relatively strongly, particularly the residential sector, despite the higher cost of borrowing. Although some cooling in economic growth is likely this year, surveys suggest businesses in general remain upbeat although there is inevitably a sector skew.

“The positive trend in holiday homes and apartments captured in the Cyprus Property Index is, meanwhile, likely to be sustained by solid growth in tourism; this is also visible in the RICS Commercial Monitor where expectations for hotel performance over the next twelve months remain solid.”

Extracts from the price and rental index

Market values year-on-year

During 2023 Q4, a further increase was recorded in residential properties, with apartments leading the way ahead of Houses. Offices and Warehouses recorded more modest gains whilst, in contrast, retail prices posted a slight decrease on Q3.

  • Apartments +9.53%
  • Houses +6.47%
  • Retail premises +0.26%
  • Warehouses +4.97%
  • Offices +3.54%

Holiday home prices

Holiday assets (apartments & houses) continue their upward trend in values with both continuing to perform strongly.

  • Holiday apartments +7.77%
  • Holiday houses +6.63%

Rental values year-on-year

On a year-on-year comparison, rental values showed increases in all asset categories, the highest being in holiday apartments, followed closely by (residential) apartments, then houses. retail and warehouse asset classes are at the lower end of the scale, recording small increases.

  • Apartments +14.25%
  • Houses +12.22%
  • Retail premises +3.15%
  • Warehouses +2.55%
  • Offices +5.44%
  • Holiday apartments +15.77%
  • Holiday houses +7.66%

Rental yields

Yields have recorded marginal increases since last year, the largest in holiday apartments followed by apartments.

Retail and offices recorded marginal increases, whilst warehouses are showing a small decrease.

  • Apartments 5.48%
  • Houses 2.99%
  • Retail 5.84%
  • Warehouse 4.24%
  • Office 5.51%
  • Holiday Apartments 5.82%
  • Holiday Houses 2.74%

Notional buildings

The RICS Cyprus Property Price Index with KPMG in Cyprus monitors hypothetical or notional buildings, each having specific characteristics. The methodology underpinning Index was developed by the University of Reading.

The price per sqm is based on the Gross External Area of the property (as defined in the RICS’ Code of Measurement Practice 8th Edition), which includes the living area and covered verandas but excludes common areas.

The estimation of price levels is carried out by accredited RICS property professionals who are active in the relevant markets.

Further reading

The full publication can be found on the RICS website at RICS Cyprus Property Index with KPMG in Cyprus.

Faster Title Deeds issuance announced

Jonathan Shkurko
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Faster Title Deeds issuance announced

Interior Minister Constantinos Ioannou on Thursday highlighted “significant improvements” in the examination and issuance of property Title Deeds, which, according to him, will help reducing the average processing time to three months from the previous one to three years.

Addressing a seminar organised by the Pan-Cyprian Association of Land Development and Construction Entrepreneurs, Ioannou underlined the government’s commitment to fostering conditions conducive to development, a pledge declared since June 2023.

The efforts to shorten the time needed to grant Title Deeds to property owners involve the simplification of procedures both at the Department of Lands and Surveys and at the department of town planning and housing.

Ioannou also stressed ongoing efforts to streamline urban and spatial planning, facilitating expedited citizen service and bolstering development prospects.

Acknowledging past delays in completing Title Deeds processes, Ioannou outlined objectives to institute more flexible and expeditious procedures, eliminating unnecessary delays and inconveniences.

“We recognise that significant delays in many instances regarding the completion of title issuance processes affected people,” he told the Cyprus News Agency (CNA).

“Our goal is to introduce more flexible and faster procedures.”

One of the key changes proposed to enhance and expedite the issuance of Title Deeds is the new procedure concerning applications for parcel division to create new property titles.

The change, which was effectively implemented on January 2, 2024, prioritises pre-defined external demarcation and surveying work for developments, ensuring that all applications are submitted fully and correctly completed for expedited evaluation without the constant need for additional documentation from applicants.

Ioannou also highlighted the pre-defined completion of external demarcation before parcel division, “which will ensure that future developments align within the real boundaries of the properties’ plots, avoiding interventions in neighbouring properties, a frequent point of contention among property owners.”

Additionally, Ioannou noted recent measures undertaken by the department of land and surveys, including the implementation of the private licensed surveyor institution as the sole option for conducting required surveying work for parcel division.

“This enables people to engage directly with their chosen private surveyor for completing surveying tasks, relieving departmental personnel from these duties to undertake other responsibilities and reducing significant delays,” Ioannou explained.

“With these changes, I am sure property owners will face a substantial reduction in the overall processing time for applications and, ultimately, the issuance of Title Deeds,” he concluded.

CM

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