Building permits falter in March

Nigel Howarth
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Building permits falter in March

In March 2020, the month during which Cyprus introduced COVID-19 containment measures, 397 building permits were issued; a fall of 23.9% compared to 522 in the same month last year according to official figures released by the Cyprus Statistical Service.

The total area of the permits fell by 4.5% and their total value fell by 21.6%, reaching 135.7 thousand square metres and €139.8 million respectively.

The permits provided for the construction of 524 new homes, a fall of 14.8% compared to 615 in March 2019.

During March 2020, the 397 permits were authorised for:

  • Residential buildings – 286 permits
  • Non-residential buildings – 56 permits
  • Civil engineering projects – 16 permits
  • Division of plots of land – 25 permits
  • Road construction – 14 permits

Building permits for new homes

The 286 residential permits provided for the construction of 524 new homes (dwellings). These comprised 206 single houses; a fall of 27.7% compared to the 285 authorised in March 2019 – and 80 multiple housing units including apartments, semis, townhouses and other residential complexes; a fall of 19.2% compared to the 99 authorised in March 2019.

Building Permits Issued for the Construction of New Homes
(Number of Dwellings)

Month 2019 (Dwellings) 2020 (Dwellings) Increase/Decrease %age Change
January 548 696 148 27.0%
February 576 680 104 18.1%
March 615 524 -91 -14.8%
Totals 1,739 1,900 161 9.3%

Of those 524 new homes, 178 are destined for Nicosia, 155 for Limassol, 122 for Paphos, 35 for Famagusta and 34 for Larnaca.

Annual construction figures

A total of 1,526 building permits were authorised during the first quarter of 2020, compared to 1,591 in the same period last year. Their total value rose by 4.6% and their total area by 5.7%. The number of permits authorised for the construction of new homes fell by 5.6%.

The 1,101 residential building permits authorised during the first quarter of 2020 provided for the construction of 1,900 new homes; 682 in Limassol, 618 in Nicosia, 240 in Paphos, 221 in Larnaca and 139 in Famagusta.

According to the Cyprus Statistical Service, building permits constitute a leading indicator of future activity in the construction sector.

Historic deal allows property development in British Bases

Editorial
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Historic deal allows property development in British Bases

CYPRIOTS who own land in non-military areas inside the British Bases will be able to sell or develop their properties, following a milestone agreement between Cyprus and the UK.

In what was hailed by President Nicos Anastasiades as a historic moment, Cyprus and the UK signed an agreement which will see the British Bases allowing the development of certain areas for the first time since independence in 1960.

“I think today is a historic day for the residents and owners of property inside the territory controlled by British authorities, but also concrete proof of the excellent relations between the Republic of Cyprus and the United Kingdom,” Anastasiades said at the signing ceremony in Nicosia.

The agreement concerns 18 Km² of around 254 Km², or 3% of the island’s territory — retained by former colonial ruler Britain in Akrotiri in Limassol, and Dhekelia, Larnaca, as sovereign territory used as military bases.

Under the 1960 Treaty of Establishment of the Republic of Cyprus, properties inside the two areas could only be used for agricultural purposes by their owners.

Furthermore, they could only be developed under strict regulations, which included owners being native to the area and that they did not possess any other property.

The process kicks-off with the publishing of the Strategic Environmental Impact Assessment (SEIA) report relating to the arrangement, together with the Development Plan by the Environment Department and the SBA Administration.

The documents have been posted on the Websites of the Town Planning and Housing Department.

Interested parties will have 35 days to submit any observations or objections related to the content of the Strategic Study, as part of public consultation.

Some landowners may not be able to make use of their properties as it may fall within the limits of a protected area under the NATURA 2000 scheme, or other protected wildlife habitats.

The Environmental Impact Study will essentially denominate zones in which development will be allowed.

The agreement provides for the release of about 8.6 square kilometres of land in Akrotiri and 9.3 square kilometres in the Dhekelia area, which will be included in development zones.

This covers three municipalities, Ypsonas, Kato Polemidia, and Dherynia and 16 communities, Asomatos, Trachoni, Kolossi, Erimi, Sotira, Paramali, Avdimou, Akrotiri, Frenaros, Avgorou, Afheritos, Pyla, Ormidhia, Xylotympou, Xylofagou and Achna, in the districts of Limassol, Larnaca and Famagusta.

Essentially, Cypriots owning land in non-military areas in the UK Sovereign Bases which does not fall in an environmentally protected area will be allowed to sell and develop their properties after 60 years as Cyprus and UK come to an over the matter.

Commercial ventures allowed

Essentially, Cypriots owning land in non-military areas which are not environmentally protected will be allowed to sell and develop their properties some 60 years after the declaration of Independence.

“The agreement constitutes the biggest change in land use and development of various zones inside the bases since the foundation of the Republic of Cyprus,” said Anastasiades.

The Agreement implemented on Tuesday was reached on 15 January 2014 between the then Prime Minister David Cameron and President Anastasiades.

British High Commissioner Stephen Lillie said the discussions between the sides were complex, but they are an indication of the commitment of the two countries to developing bilateral ties and finding new areas of cooperation.

As Lillie explained, residents of the Bases will now be able to enjoy the same rights as Cypriots living on areas controlled by the Republic to sell and develop their land.

“This will bring very obvious benefits to the 12,000 Cypriots who live in the Bases.

“At a time when the spread of the coronavirus is generating fear and uncertainty about the livelihoods of communities the world over, I take pride in the fact that we have worked together to deliver a change that will have a real and positive impact on people’s prosperity,” said Lillie.

Land relaxation apart from housing can be used for tourism, commercial, industrial, and large-scale developments like schools, theme parks, sports, entertainment centres, hospitals or other health facilities.

The accord also allows for building petrol stations, restaurants and other small-scale developments.

In comments to CyBC radio, Pantelis Georgiou the Mayor of Ypsonas, a village in Limassol, welcomed the agreement, saying that residents in the Bases have waited for six years for the agreement to go ahead.

He noted that residents will be given room to breathe, especially those who had mortgaged their properties at some point but were not able to put them to use to pay off their loans.

“The agreement will bring about significant development of the areas inside the Sovereign Bases,” said Georgiou.

Private jet demand by wealthy Russians rises

Reuters News Agency
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Private jet demand by wealthy Russians rises

SOME private jet companies have seen a rise in demand from wealthy Russians who want to spend time in the West during the coronavirus crisis but who were unable to take commercial flights amid tight restrictions by airlines and governments.

Passengers are heading for countries such as Britain and Cyprus where they own property, have residency rights, sometimes thanks to holding dual nationality, or have close relatives, according to industry sources.

They are paying from 16,000-25,000 euros per flight, a fee that can cover up to 13 passengers, the sources added.

“People are tired of lockdown living … they are looking for ways to get out,” said Aleksandr Osit, owner of the JETVIP broker company which says it has registered a surge in one-way Europe-bound flights in the last two months.

The use of private aircraft when most airlines stopped flying is not illegal and not unique to Russia, with reports of Chinese flying home from the United States and Americans landing in elite domestic vacation spots.

In March, there were 250 private jet round flights between Moscow and Europe, flight tracking data from 80 planes registered with Russian and European charter firms show, though the data did not specify how many people were on board each.

Private jet flights continued in April, albeit falling to 61 round trips that month despite Russia suspending regular and commercial charter flights to and from Russia with some exceptions and locking down Moscow, the epidemic’s epicentre.

The frequency of such flights rose to 107 between May 1-26.

Three aviation sources said the number of Russians flying into the country in March outweighed those leaving at a time when Russia had a relatively low coronavirus count and European countries were reporting far greater numbers.

That trend reversed over time, the three sources added, and more people are leaving Russia, which now has the third highest number of coronavirus cases in the world, though with a relatively low official mortality rate.

Jet Partners, which offers private jet flights, said it was experiencing an increase in requests for destinations in France, Spain, Cyprus, Britain and other European countries.

“People believe that it is safer for them to be at their private residences abroad,” said Margarita Lomakina, the company’s commercial director.

Stanislav Kruglov, an account manager with Vip Group Aero, said he had received dozens of requests from mid-April for flights to Vienna, Larnaca and Riga from individuals and families with children.

The Sirius Aero private jet airline said prices for flights were 20-30 percent lower in April and May compared to the same period last year.

Rosaviatsia, Russia’s federal aviation industry, declined to comment on the patterns in private jet use.

(By Maria Vasilyeva and Gleb Stolyarov with additional reporting by Rinat Sagdiev; Writing by Maria Vasilyeva/Andrew Osborn; Editing by Mike Collett-White)

Property sales record sharp drop in May

Nigel Howarth
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Property sales record sharp drop in May

WITH THE COVID-19 pandemic affecting almost every sector of Cyprus economy, including the real estate market where the number of property sales contracts deposited at Land Registry offices across the island recorded a sharp drop of 71% in May according to official figures from the Department of Lands and Surveys.

Limassol was the hardest hit with sales falling by 79% compared to May 2019, while Paphos suffered a fall of 70%. Meanwhile, sales in Famagusta, Larnaca and Nicosia fell by 68%, 66% and 53% respectively.

However, it should be remembered that there was a huge spike in sales in May 2019 as many foreigners rushed to by property before more stringent criteria were imposed on foreigners seeking a Cypriot passport under the provisions of the government’s “Cyprus Investment Programme“.

Total Property Sale Contracts – 2019/2020 Comparison

District Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Nicosia 2019 161 194 131 169 213 145 174 103 137 183 208 180
2020 197 178 139 38 100
Famagusta 2019 53 48 45 96 87 43 49 30 40 50 48 64
2020 50 47 41 10 28
Larnaca 2019 114 125 118 140 173 102 157 93 102 160 122 162
2020 147 118 106 24 59
Limassol 2019 251 256 287 428 546 219 286 196 240 228 296 284
2020 180 225 143 72 112
Paphos 2019 187 211 185 224 404 205 230 166 173 192 233 220
2020 168 171 81 72 120
Totals 2019 766 834 766 1057 1423 714 896 588 662 813 907 910
2020 742 739 510 216 419

During the first five months of 2020 property sales have fallen by 46%.

Domestic property sales

Property sales to the domestic market (which accounted for 53% of all sales in the month) fell by 72% compared to May 2019 with sales falling in all districts.

Paphos and Famagusta saw the biggest fall, down 82% compared to the same month last year. Sales in Limassol fell 78%, while sales in Larnaca and Nicosia fell 66% and 51% respectively

Domestic Property Sale Contracts – 2019/2020 Comparison

District Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Nicosia 2019 127 164 115 137 168 121 153 90 114 163 187 154
2020 178 155 124 29 83
Famagusta 2019 32 19 16 58 45 25 2 13 16 33 13 26
2020 10 18 16 6 8
Larnaca 2019 54 82 47 73 83 42 90 53 67 81 69 88
2020 76 64 56 13 28
Limassol 2019 166 152 192 291 329 138 177 134 176 144 210 212
2020 98 136 76 23 73
Paphos 2019 30 31 28 69 175 69 54 54 34 66 64 69
2020 55 29 26 21 31
Totals 2019 409 448 398 628 800 395 476 344 407 487 543 549
2020 417 402 298 92 223

During the first five months of 2020 property sales to the domestic market have fallen by 47%.

Overseas property sales

Property sales to the overseas market fell by 69% compared to May 2019 with sales falling in all districts.

Sales in Limassol fell 82%, sales in Larnaca fell 66%, sales in Nicosia were down 62% and sales in Paphos and Famagusta were down 61% and 52% respectively.

Total Overseas Property Sale Contracts – 2019/2020 Comparison

District Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Nicosia 2019 34 30 16 32 45 24 21 13 23 20 21 26
2020 19 23 15 9 17
Famagusta 2019 21 29 29 38 42 18 47 17 24 17 35 38
2020 40 29 25 4 20
Larnaca 2019 60 43 71 67 90 60 67 40 35 79 53 74
2020 71 54 50 11 31
Limassol 2019 85 104 95 137 217 81 109 62 64 84 86 72
2020 82 89 67 49 39
Paphos 2019 157 180 157 155 229 136 176 112 139 126 169 151
2020 113 142 55 51 89
Totals 2019 357 386 368 429 623 319 420 244 285 326 364 361
2020 325 337 212 124 196

During the first five months of 2020 property sales to the overseas market have fallen by 45%.

Sales to EU citizens

Property sales to the EU segment of the overseas market fell by 65% compared to May 2019 with sales falling in all districts.

Larnaca was hardest hit with sales falling by 85%. Sales in Paphos fell 70%, while sales in Famagusta fell 60% and sales in both Limassol and Nicosia fell 50%.

Foreign (EU) Property Sale Contracts – 2019/2020 Comparison

District Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Nicosia 2019 14 14 9 19 20 16 13 5 8 10 15 14
2020 9 12 9 3 10
Famagusta 2019 9 6 14 17 10 8 17 14 10 5 9 23
2020 6 14 10 3 4
Larnaca 2019 12 12 21 18 20 11 16 13 6 23 14 23
2020 21 13 11 0 3
Limassol 2019 16 25 20 21 28 26 27 17 25 30 26 25
2020 28 30 11 12 14
Paphos 2019 56 72 61 48 69 59 73 58 61 95 61 72
2020 40 60 25 24 21
Totals 2019 107 129 125 123 147 120 146 107 110 133 125 157
2020 104 129 66 42 52

During the first five months of 2020 property sales to the EU segment of the overseas property market have fallen by 38%.

Sales to non-EU citizens

Property sales to the non-EU segment of the overseas market fell by 70% compared to May 2019 with sales falling in all districts.

Limassol reported the biggest fall with sales falling by 87% compared to May 2019, while Nicosia suffered a fall of 72%. Meanwhile, sales in Larnaca, Paphos and Famagusta fell by 60%, 58% and 50% respectively.

Foreign (Non-EU) Property Sale Contracts – 2019/2020 Comparison

District Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Nicosia 2019 20 17 7 13 25 8 8 8 15 10 6 12
2020 10 11 6 6 7
Famagusta 2019 12 23 15 21 32 10 30 3 14 12 26 15
2020 34 15 15 1 16
Larnaca 2019 48 31 50 49 70 49 51 27 29 56 39 51
2020 50 41 39 11 28
Limassol 2019 69 79 75 116 189 55 82 45 39 54 60 47
2020 54 59 56 37 25
Paphos 2019 101 108 96 107 160 77 103 54 78 61 108 79
2020 73 82 30 27 68
Totals 2019 250 257 243 306 476 199 274 137 175 193 239 204
2020 221 208 146 82 144

During the first five months of 2020 property sales to the non-EU segment of the overseas property market have fallen by 48%.

Analysis of property sales since 2000

Cyprus Property Sale Contracts 2000 – 2020

Year Overseas Sales Domestic Sales Percentage
Overseas Sales		 Total
Sales
2000 450 12,214 3.6% 12,664
2001 1,207 12,849 8.6% 14,056
2002 2,548 14,111 15.3% 16,659
2003 3,981 15,294 20.7% 19,275
2004 5,384 11,947 31.1% 17,331
2005 6,485 10,106 39.1% 16,591
2006 8,355 8,598 49.3% 16,953
2007 11,281 9,964 53.1% 21,245
2008 6,636 8,031 45.2% 14,667
2009 1,761 6,409 21.6% 8,170
2010 2,030 6,568 23.6% 8,598
2011 1,652 5,366 23.5% 7,018
2012 1,476 4,793 23.5% 6,269
2013 1,017 2,750 27.0% 3,767
2014 1,193 3,334 26.4% 4,527
2015 1,349 3,603 27.2% 4,952
2016
 1,813 5,250 25.7% 7,063
2017
 2,406 6,328 27.5% 8,734
20181 4,367 4,875 47.3% 9,242
2019
 4,482 5,884 43.2% 10,366
2020 (May)
  1,194 1,432 45.5% 2,626
Totals
 71,067 159,706 30.8% 230,773

1 The Department of Lands & Surveys has advised that overseas sales in 2018 and subsequent year should not be compared to sales in previous years due to changes in the methodology used to classify ‘Aliens’ (foreigners).

Paralimni Marina set to launch this summer

Press Release
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Paralimni Marina set to launch this summer

GLOBAL real estate advisor Savills has been appointed as the master selling agent for Paralimni Marina, the new waterfront destination set to transform Cyprus.

Launching this summer, Paralimni Marina will include 123 two – four-bedroom apartments and villas with interiors furnished by Armani/Casa, the legendary Italian design house. A promenade and park will provide the focal point of the community with a 300-berth marina and serviced yacht club, alongside cafes and restaurants from international and local brands. Residents will also have use of residents-only lounges and a health club and spa.

Rod Taylor, head of international new developments, Savills, said, “Paralimni Marina will create a destination for both local and international buyers and it is one of the most exciting projects that Savills has been involved in. The master planning and residential offering coupled with the retail and F&B will set a new benchmark for future marina projects.”

Anthoulis Kountouris, CEO, Paralimni Marina, said: “We are excited to work with an internationally acclaimed firm such as Savills. We are confident that their professionalism and expertise will add value to the project and promote it to the right audience as a unique lifestyle destination in Protaras, one of the most beautiful coastal areas in the Mediterranean.”

For more information and to register your interest, visit http://www.paralimnimarina.com/

Developers insist on Paralimni golf course

Annette Chrysostomou
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Developers insist on Paralimni golf course

DEVELOPERS are yet again trying to go ahead with constructing a golf course in the Paralimni area, the Cyprus News Agency reported on Tuesday.

The development has been denied permission since 1997 and just last year the Ayia Napa municipality rejected the proposal to lease the land after the overwhelming majority of Ayia Napa residents decided to protect the forest instead.

The developers are now trying another area, the fourth over the years, this one located in the Paralimni municipality.

According to CNA “the creation of a golf course in the district of Famagusta is the aspiration of residents, tourism agents, and businessmen in the area, to enrich and upgrade the tourist product, to address the problem of seasonality, and further boost the region’s economy.”

On May 25, the forestry department sent a letter to the relevant government departments, asking them for their view regarding the lease of the forest land within the Paralimni municipality and the application by the company Ayia Napa Forest Golf Ltd, dated May 11, for the purpose of creating a golf course and building facilities for its administration and operation.

The area covered by the project, which is outside the area of “interest of the local community” and the “special protection zone”, is expected to be about 771,000 square metres and includes the course and residential, commercial, and tourist development.

In February last year, environmental authorities turned down an application for a golf resort in the Ayia Napa area because of the negative and irreversible effects it would cause to the natural environment.

The decision was taken after they conducted an ecological assessment and an environmental impact study.

The study concluded the project would lead to the destruction of 7.5 per cent of a priority-protected Natura 2000 habitat of seasonal Mediterranean lakes.

golf course

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