Paphos property sales exceed €190 million

Kyriacos Nicolaou
-
0
Paphos property sales exceed €190 million

The Paphos property market has seen a surge in real estate sales, with major deals pushing the total value of transactions in excess of €190 million during the second quarter of 2023, according to a report by Cypriot firm Ask Wire

During this period, the value of properties sold in Paphos reached remarkable figures, with apartments totalling €46.1 million, houses at €99.6 million, fields at €34.1 million, and land parcels at €14 million.

In addition, the Paphos district, known for its picturesque landscapes and scenic beauty, showcased its potential in the real estate market with nine luxury home sales valued at over €1 million.

According to the report, a total of 851 properties across four major categories (houses, apartments, land parcels, and fields) were sold in Paphos, amounting to a combined value of €193.8 million.

Notably, the municipality of Paphos, as well as the district in general, saw 270 apartment sales, 294 house sales, 214 land parcel sales, and 73 land field sales.

The district’s apartment sales totalled €46.1 million, houses reached €99.6 million, fields contributed €34.1 million, and land parcels added €14 million to the total sales value.

Moreover, the Paphos district accounted for 14.4 per cent of apartment sales nationwide, making it a significant player in the Cyprus property market.

Pavlos Loizou, CEO of Ask Wire, commenting on the data, stated that “the Paphos district continues to exhibit strength in the housing market, driven by luxury home sales”.

“Notably, the apartment market also shows resilience, with a strong interest in apartments priced between €100,000 and €200,000,” he added.

The report revealed that six out of ten apartment sales in Paphos were valued between €50,000 and €200,000, with the most substantial interest from buyers falling within the €100,000 to €200,000 price range, representing almost four out of ten apartment transactions.

Additionally, the Paphos district continued to maintain its strength in house sales, contributing 29.2 per cent of the national volume and 30.8 per cent of the total value of house sales.

Nearly seven out of ten house sales were in the €100,000 to €500,000 price range, with the majority (75) falling between €300,000 and €500,000.

In addition, Paphos recorded nine sales of luxury homes valued at over €1 million each.

Meanwhile, a significant portion of field sales, almost seven out of ten, in Paphos were for plots valued at up to €50,000, with the majority priced under €25,000.

Analysis based on land area revealed that 51.6 per cent of field sales were plots of up to 4,000 square metres, 31 per cent were between 4,000 and 10,000 square metres, and 17.4 per cent were over 10,000 square metres.

Paphos accounted for 17.2 per cent of the national volume and 21.1 per cent of the value of field sales.

What is more, the Paphos district represented 11 per cent of land parcel sales nationwide and contributed 11.5 per cent of the total value of such sales.

Six out of ten land parcels sold were priced between €50,000 and €200,000, with nearly seven out of ten having an area ranging from 400 to 800 square meters.

“The field sales figures are particularly intriguing, reflecting substantial transactions for large plots,” Loizou said.

“Furthermore, the land parcel market suggests a continued interest in constructing luxury homes and apartments,” he added.

“It’s evident that these kinds of analyses serve as valuable tools for investors, sellers, banks, and other decision-makers,” the Ask Wire CEO concluded.

New Jointly-Owned Buildings law in Parliament

Andreas Andreou
-
1
New Jointly-Owned Buildings law in Parliament

The proposed legislative changes, tabled in the parliament yesterday, seek to modify and enhance the existing framework for the management of Jointly-Owned buildings.

Although a comprehensive discussion and eventual voting in the parliament are expected before the final text is adopted, an initial examination is promising. These amendments include measures that have been suggested over several years, both by myself and other stakeholders in the market.

It is not yet the time for a detailed analysis of the draft bills, as they are not finalized. However, it’s essential to consider their scope of influence.

One notable addition is the establishment of a Registration and Supervision Service for Jointly-Owned Buildings. This marks the initial step towards abolishing the chaotic system that has persisted until now, characterized by property owners paying common expenses whenever they choose, ineffective management committees, and unmaintained and uninsured buildings – issues that are all too familiar in our surroundings.

One of the primary tasks of this service will be to create a registry of Jointly-Owned Buildings. Currently, there is no comprehensive record of such buildings and their operational status. Some information exists within government departments, but it lacks proper oversight.

Simultaneously, this registry will include a list of management committees, detailing their members and internal operational rules. The Service, empowered by law, will have the authority to impose administrative fines on both management committees and property owners for violations. A significant provision is the Service’s ability to approach the court unilaterally to request an order for the removal of illegal alterations or irregularities within a building. This effectively addresses issues like unauthorized balcony enclosures, construction without permits, or alterations without the proper legal basis. The responsibility lies not only with those who make these changes but also with those who tolerate them. Minor internal renovations and alterations that do not affect the building’s appearance or the comfort of other owners are exempted from this provision.

Expanding the scope of who can participate in these committees should be considered beyond property owners alone. The draft legislation currently restricts committee membership to owners. However, it might be beneficial to allow first-degree relatives of owners to participate and even individuals with qualifications in property management if available and willing.

Lastly, the creation of a permanent maintenance fund is a crucial measure. Another significant aspect defined in the draft law is the requirement for management committees to provide proof of payment of common expenses to relevant government departments, when necessary, for activities such as property sales, transfers, mortgages, or rentals. This measure will discourage the practice of selling property, then disappearing and leaving the dues for the next owner to cover.

Further examination will be required when the legislation is finalized to scrutinize specific articles that may not have been visible in the current draft or that may emerge later and warrant discussion.

Article first published in KNEWS (the English edition of Kathimerini Cyprus)

Prices ‘escalating beyond traditional expectations’

Kyriacos Nicolaou
-
1
Prices ‘escalating beyond traditional expectations’

The upward trajectory of property prices in Cyprus over recent years, driven notably by the rising cost of construction materials and increased demand, has prompted concerns among experts, including Marinos Kineyirou, president of the Council for Registration of Real Estate Agents, who voiced his thoughts on the matter.

“We have noticed in recent times that many property owners, land development entrepreneurs, and even private individuals are seeking unnaturally high selling and rental prices for their properties,” Kineyirou said.

Drawing upon years of experience in the Cypriot real estate market, he added that “we can discern when prices are within reasonable bounds and when they deviate from the norm”.

“Currently, there are prices that do not align with the traditional and logical parameters of the Cypriot property market,” he explained.

Recent data from the Central Bank of Cyprus (CBC), specifically for the first quarter of 2023, lends credence to Kineyirou’s observations.

The House Price Index shows a 7.7 per cent increase compared to the same period the previous year.

Notably, housing prices have risen by 6.6 per cent on an annual basis, while apartment prices have surged by 8.4 per cent.

These increases are significant, considering that, for example, an apartment valued at €150,000 in the first quarter of 2022 is now selling for approximately €163,000, and similarly, a house valued at €250,000 is now approximately €265,000.

For example, in Limassol, where prices have been the most extreme, real estate sales reached nearly €500 million in value during the second quarter of 2023, with the majority of buyer interest in apartments valued between €100,000 and €500,000.

A total of 1,383 properties were sold during this time, amounting to €437.9 million. Limassol remains a key player in Cyprus’s real estate market, with apartments in the €100,000 to €500,000 range being particularly popular.

In the capital, there were 553 apartment sales, 184 house sales, 312 land sales, and 218 land plot sales during the second quarter of 2023.

The value of apartments sold reached €99.7 million, houses at €46.5 million, land at €20.2 million, and land plots at €38.6 million.

Nicosia accounted for 29.5 per cent of apartment sales nationwide. What is more, according to a recently published report, buyers in Nicosia displayed strong interest in apartments priced between €100,000 and €200,000, with almost six out of ten apartments sold falling within this price range.

In addition, four apartments were sold for over €1 million in the Cypriot capital.

Moreover, more than half of house sales in the Nicosia district (99 out of 184) were in the €100,000 to €300,000 price range. Two houses were sold at prices exceeding €1 million.

This trend is raising concerns, Kineyirou noted, particularly as households face financial constraints in the property market, exacerbated by rising interest rates.

At the same time, general inflation continues to erode the incomes of renting households, posing significant challenges for tenants.

Kineyirou also highlighted the role of real estate agents, who often find themselves in the middle of negotiations between buyers, sellers, and renters.

“In recent months, many colleagues have been subject to critical comments from potential buyers and renters,” he explained.

“It is important for people to understand that real estate agents do not determine the selling or rental prices of properties,” he added.

Concluding his analysis, Kineyirou stressed that while real estate agents do not set property prices, the excessive price hikes represent a significant concern that cannot be left unchecked, as they could have detrimental effects on the entire sector and the broader economy.

The Council for Registration of Real Estate Agents, he said, is “committed to intensifying efforts to raise awareness about the roles and responsibilities within the property market while addressing these market dynamics”.

Analysis reveals Limassol top of the props

Nigel Howarth
-
0
Analysis reveals Limassol top of the props

An analysis reveals that Limassol is top of props offering the highest rental yields of 7.8% for two-bedroom apartments and the island’s highest market values of the properties analysed.

Speaking to Cyprus Property News, Dr Charalambos Pitros PhD MRICS, Managing Partner at Zyprus Property Group, said the Group’s analysis was based on data published by the Cyprus Central Bank in its Residential Property Price Indices.

The figures, presented in the table below, represent resale properties between 10 and 13 years old in average condition, in an average area, and of an average size, i.e.:

  • One-bedroom apartment 50sqm internal area.
  • Two-bedroom apartment 80sqm internal area.
  • Three-bedroom detached house 180sqm internal area on a plot size of 500sqm.

The Zyprus analysis reveals that Limassol is top of the props offering a rental yield of 7.8% for a one-bedroom apartment and a year-on-year increase in market value of 10.4% for both one-bedroom and two-bedroom apartments. An average three-bedroom house in Limassol would set you back €550,000.

The property market in Limassol has been boosted by an influx of Russian and Ukrainian firms fleeing the war wartime conditions, while it seems Israeli investors have also helped to drive up prices and rents.

Market values for apartments in Larnaca have risen have risen 12.3% year-on-year and the rental yield for an average 2-bedroom apartment (at 7%) is higher than a similar property in Limassol.

Famagusta is the cheapest area to buy property. But the rental yield for a one-bedroom apartment is only surpassed by (you guessed it) Limassol.

Those wishing to buy an apartment to rent either short or long term, need to consider its running cost. As apartments invariably form part of a ‘jointly-owned building‘, their owners need to contribute towards the costs of common services, insuring, maintaining, repairing and managing the jointly-owned building, which includes everything within the boundary of the complex. (Of course this excludes the costs of owners insuring the contents of their unit, its services and its maintenance and repair.)

Cyprus property prices and rents
Source: Zyprus Real Estate                                                                                          Source: Central Bank of Cyprus

Paphos marina mired in paperwork

Editorial
-
0
Paphos marina mired in paperwork

The announcement of the competition for hiring consultants for the preparation of documents for the Paphos Marina project has been postponed until mid-September, following a series of delays and complications.

George Mais, President of the Paphos Chamber of Commerce and Industry (EBE), revealed that the delay in the marina project was attributed to issues with the documents submitted for legal review. The initial announcement of the competition, expected in early August, encountered problems with the documents that were sent for assessment by the Legal Service, prompting the need for revisions.

Mais noted that the necessary corrections were made, and the revised documents have been resubmitted to the Legal Service. They are now anticipated to be ready within September. This delay in the marina project has added to the frustrations of both EBE Paphos and various stakeholders of the city.

Regarding the expectations of EBE and the Paphos business community, Mais said that their concerns about the development framework have been addressed. He confirmed that the competition will be conducted through the Best Offer Technique (BOT) and that interested investors will be invited to participate based on the terms outlined in the announcement.

© 2020 In-Cyprus.com

 

Navigating rising costs in Cyprus

Christos Nikolaou
-
0
Navigating rising costs in Cyprus

For retirees, particularly those from the UK, the Cyprus property market presents both opportunities and challenges. With interest rates and construction costs on the rise, a tailored strategy is essential. This enhanced guide aims to delve deeper into specific strategies like renting out property, investing in older homes, and downsizing.

Retirees face unique challenges in the current market, especially those on fixed incomes. Rising costs can strain budgets, making it crucial to explore alternative income streams and investment opportunities.

Renting out part of your property can be a lucrative option. Long-term rentals offer a steady income stream and lower turnover, reducing administrative hassles. However, they also tie up your property for extended periods and can bring the risk of problematic tenants. On the other hand, short-term rentals can yield higher income and offer more flexibility in using your property. The downside is that they require more hands-on management and are subject to seasonal demand fluctuations.

Consider investing in older properties. While older properties have seen a price increase, they often require a lower initial investment compared to new builds. This can be particularly true for repossessed properties. These homes offer the potential for customization but may require significant renovation. Additionally, the legal complexities associated with repossessed properties should not be overlooked, as they can bring hidden costs.

Downsizing can be an emotionally challenging but financially rewarding decision. Selling a larger property to purchase a smaller one can free up capital for other investments and reduce maintenance costs. However, the emotional toll of leaving a long-term home and the costs associated with moving and buying a new property should be carefully considered.

Diversifying into fixed income investments like bonds can offer a financial cushion. Also, stay updated on government schemes that may offer financial incentives for property owners.

For retirees in Cyprus, navigating the current financial landscape requires a multi-faceted approach. Whether it’s generating an income through rentals, investing in older or repossessed properties, or downsizing for a more manageable lifestyle, various strategies can help you not only weather the current challenges but also secure a comfortable future.

About the author

Christos Nikolaou
Licensed Real Estate Agent
Property Canvas (Registered & Licensed Estate Agency A.A.826 & A.M. 432/E)

1...130131132...706Page 131 of 706