Slippage of stricken Tala development accelerates

A stricken Tala building development located just above a busy road in Paphos is sliding down a hillside faster than ever following this winter’s heavy rainfall.

Residents and local officials are concerned that the buildings could come crashing down onto the road below – the main access road in and out of Kamares village – causing injury or even death.

“In the last two weeks there are dramatic, visible changes in the buildings and the road surface,” Kamares resident Irina Yakimovitch told the Sunday Mail. “A 60cm crack is now apparent between the development and a wall, two of the buildings are massively tilted and the road has huge ripples in it. There are two cracks in the road, one is about 15 cm wide. There is a huge wave in the road creating humps, this means that the building is moving fast.”

The Tala development, which consists of 14 units – four apartments, two villas and eight townhouses, (the latter still a concrete skeleton) – is the subject of a legal wrangle which saw the Paphos District Office (PDO), the responsible body, apply to court for a demolition order for the buildings in February 2016.

The request failed because of legal procedures and technicalities, according to Mary Lambrou, the Paphos District Officer. The PDO has appealed this result, which is now before the Supreme Court.

Tremetoushiotis Developers Ltd – operating under the umbrella of Top Cyprus Properties – were responsible for the construction of the development, but have said that they would never have gone ahead with construction if they had been aware that the land was ‘problematic’ to build on.

All of the necessary permits and licenses were issued for the project prior to construction, although Lambrou said that some building permit stipulations were not followed, such as retaining walls were constructed too high, at four metres instead of two.

All residents and owners were forced to leave after authorities deemed the properties unfit for habitation.

“We are monitoring the situation closely. There is no direct risk to public safety at the moment, but there is a later risk. This is the opinion of our civil engineers and others,” Lambrou told the Sunday Mail.

She said that in addition to the PDO civil engineer, a private civil engineer is carrying out an independent study of the development, which will be examined by an ‘ad hoc’ committee consisting of three civil engineers in the coming days. The committee will oversee any additional safety measures.

“We expect a decision from the supreme court by the end of this month or the beginning of April,” Lambrou said.

She explained initial meetings were held between the developers and the PDO where suggestions were made to demolish the top half of the property, leaving the bottom part which at the time had little damage.

“The developers decided not to cooperate with us. However, they did make arrangements with the property buyers to compensate them and we have not received any complaints about that,” she said.

As well as waiting for a decision from the court another avenue is open to the authorities said Lambrou.

“There is a clause in the streets and buildings law if there is danger to the public, then we can proceed ourselves (to demolish) after a notice to the owners. In case there are expenses, we could then sue the developers to recover our costs,” she said.

Local Tala councillor Cathi Delaney has written to Lambrou to raise concerns about the condition of the buildings and the effect on the road.

“There are assurances from the District Office engineers and other officials that if the building is going to slip there will be drastic changes before any slippage occurs. If the building reaches this stage, the road in front will be closed and traffic diverted,” she said.

Delaney added that the estimated demolition/site clearance costs are in the region of €250,000/€300,000.

“There is regular monitoring of the property and everyone is concerned that the wet winter has taken its toll on the property,” she said. “The deterioration is obvious.”

Kamares resident Rowena Moore has lived in the area for 25 years and drives past the crumbling Tala development daily. She said changes to the buildings and road in the past couple of weeks have been swift.

“It concerns me what is happening under the road. The splits in the buildings are getting wider and the entire project could end up crumbling onto the road. Sooner or later someone will end up injured or worse. If there was an earth tremor, it could all come tumbling down.”

On Thursday, Tala council decided to temporarily close the road for a couple of days while machinery removes large pieces of rubble that has been washed down the hillside in heavy rain.

“The road will reopen next week and this work is not connected with the buildings that are built on the hillside,” community leader Areti Pieridou told the Sunday Mail on Friday.

Editor’s notes

In 2013 the head of the planning permits department at the Paphos District Office was reported as saying “The district office is proceeding with taking legal action against the developers [Tremetoushiotis]. This is complicated and I can’t say any more about that.“

The case was judged in April 2018 and no blame was attached to Tremetoushiotis Developers. The case was referred to the Supreme Court to assess responsibility and reimbursements to any party.

The Paphos Town Planning Department had a map issued by the Cyprus Geological Department showing that the land on which the development was built to be potentially problematic; the map was issued in 1993.

Knowing this, Town Planning should have advised the developer that the company needed to undertake studies to check that the land was safe when developer applied for building permits in 2005.

However, the Planning Department failed to advise Tremetoushiotis and, as a consequence, no studies on the land were undertaken.

Tremetoushiotis Developers provided alternative properties of equal value at their expense.

In February 2016, Tremetoushiotis Developers wrote to the local authorities allowing them to demolish and dangerous buildings to avert the danger of a collapse.

December 2018 building permits

Cyprus December 2018 building permitsTHE TOTAL number of building permits authorised in Cyprus during December 2018 stood at 479 compared with the 437 authorised during December 2017; a rise of 9.6% and provided for the construction of 504 new homes according to official figures published by the Cyprus Statistical Service.

Compared to December 2017, the total value of all building permits rose by 4.9% to €158.8 million but their total area fell by 25.5% to 139.9 thousand square metres.

During December 2018, permits were issued for:

  • Residential buildings – 346 permits
  • Community residences – 1 permit
  • Non-residential buildings – 63 permits
  • Civil engineering projects – 27 permits
  • Division of plots of land – 34 permits
  • Road construction – 8 permits

The 346 permits for residential building approved in December provided for the construction of 504 new homes (dwellings) comprising 215 single houses and 289 multiple housing units such as apartments, semis, townhouses and other residential complexes.

Of those 504 new homes, 181 are destined for Nicosia, 167 for Limassol, 75 for Paphos, 44 for Famagusta and 37 for Larnaca.

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

Month 2017 (Dwellings) 2018 (Dwellings) Increase/Decrease %age Change
January 381 476 95 24.9%
February 383 431 48 12.5%
March 412 467 55 13.3%
April 289 418 129 49.6%
May
424 541 117 26.6%
June
381 506 125 32.8%
July 537 632 95 17.7%
August 244 453 209 85.7%
September 362 576 211 59.1%
October 543 617 74 13.6%
November
658
580
-78
-11.9%
December
325
504
179
55.1%
Totals 4,939 6,201 1,262 25.6%

Annual figures

During the period January – December 2018, 6,408  permits were issued compared to 4,053 in the corresponding period in 2017; an increase of 9.9%, while their total value and area increased by 8.5% and 18.0% respectively.

The 6,408 permits issued in 2018 provided for the construction of 2,122 new homes in Nicosia, 2,032 in Limassol, 964 in Larnaca, 646 in Paphos and 437 in Famagusta.

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

Money to help Land Registry clear backlog

Money to help Cyprus Land Registry clear backlogTHE INTERIOR Ministry has asked the House Finance Committee to release €3.6 million, part of which will go to pay for services to clear a backlog of cases at the Land and Surveys Department.

Of this €400,000 will pay for private land surveyors to tackle a pile of cases.

According to Philenews, thousands of applications relating to boundary disputes, access applications, land developments and the issuing of title deeds have been pending for many years, leading to long waits and the loss of state revenue.

To deal with the problem the Interior Ministry is contracting services from the private sector and paying employees overtime.

The 2019 budget provides for €700,000 for overtime pay at the department as follows:

€300,000 for overtime allowances for staff working on title deeds, computerization of the archives and land surveys.

€200,000 for overtime pay to cover current and pending cases relating to the issue of title deeds of apartments, plots of land, houses in development projects and upgrading of the land information system and the implementation of other current IT projects.

€200,000 for overtime pay for contract employees who help land surveyors.

The ministry is also asking for funds to buy services from the private sector as follows:

€285,000 to collect information for land appraisals (this is the first-time private evaluators will be involved). The value of an estimated 2 million properties are to be re-assessed. The procedure is underway and should be completed by the end of June.

€522,000 for new aerial photography.

€80,000 to improve the department’s online platform and implement changes resulting from the European INSPIRE directive (establishing an infrastructure for spatial information in Europe.)

© 2019 In-Cyprus.com

Alarm bells over house prices

Alarm bells over house prices in CyprusTHE CENTRAL Bank of Cyprus (CBC) called for vigilance and close monitoring of rising house prices principally in Limassol that are being pushed skywards by the Invest Citizenship scheme.

The residential property price index compiled by the CBC for Q3 2018 marked a moderate increase of 0.3% compared with the previous quarter, whereas its annual growth amounted to 1.6%.

However, prices of flats in the coastal town of Limassol climbed by 8.7% year on year, the highest of all towns, and 2.9% compared with the previous quarter, marking continued growth associated with the island’s passport for investment scheme.

In Q3 2018, prices of apartments in Paphos climbed 5.2% year on year, in Famagusta by 5%, in Larnaca the increase was 2.7%, whereas in the capital of Nicosia the increase stood at 1.2%.

“Despite the moderate average price growth, the growth momentum particularly in Limassol highlights the need for close monitoring of the developments and vigilance,” the CBC said.

Buying real estate is one of the investment scheme’s most popular criteria among foreign investors interested in acquiring a Cyprus passport, with the CBC noting that property purchases are funded with cash and not with loans provided by the Cypriot banking system.

“Strong price pressures, which were analysed in the previous Index seem to affect coastal areas of Limassol,” the CBC said.

It said that prices of flats in Limassol recorded significant increases which are manifestly higher than other areas in Cyprus, while prices of apartments have accelerated faster than house prices – evident by the number of luxury towers going up along the coast.

The CBC noted that residential house prices in Famagusta and Paphos – where foreign demand has an effect – recorded significant increases compared with Nicosia, where price increases were subdued.

In 2017, 5,517 individuals were granted Cyprus citizenship – an 18% rise since 2016. Of these 23.8% were Russians, 9.1% were UK citizens and 8.7% were Ukranians.

Sharp rise in property sales in February

Sharp rise in Cyprus property salesDURING February 2019, the number of property sales contracts deposited at Land Registry office across the Republic of Cyprus rose 25% compared to February 2018 according to official figures published by the Department of Lands and Surveys.

Apart from a 48% fall in sales in December 2018 due to the rush to buy land in December 2017 before the government introduced VAT on land sales, the number of property sales has increased for the past 22 months.

February 2019 saw a total of 834 contracts deposited at Land Registry offices for the sale of commercial and residential properties and land compared with 666 in February 2018.

Although property sales remained static in Limassol and fell by 8% in Famagusta, they rose 102% in Nicosia, 29% in Paphos and 26% in Larnaca.

The figures show a continuing improvement in the economic sentiment, together with government incentives designed to boost property sales and drive foreign investment.

However, following pressure from Europe, the cabinet approved changes to Cyprus’ citizenship-by-investment scheme last month to make it “more targeted and trustworthy”, according Finance Minister Harris Georgiades. These changes may, in time, reduce foreign investment.

(Further details of the revised scheme may be found at Cyprus Investment Programme)

Total Property Sale Contracts – 2018/2019 Comparison

District Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Nicosia 2018 146 96 126 117 153 146 176 91 118 145 161 131
2019 161 194
Famagusta 2018 48 52 40 52 79 61 61 50 45 57 47 48
2019 53 48
Larnaca 2018 112 99 116 83 113 133 112 94 121 116 143 103
2019 114 125
Limassol 2018 225 256 314 246 282 338 314 262 251 289 344 290
2019 251 256
Paphos 2018 164 163 172 157 201 180 233 156 152 204 230 230
2019 187 211
Totals 2018 695 666 768 655 828 858 896 653 687 811 925 800
2019 766 834

Property sales – year to date

Sales during the first two months rose 18% compared to the same period last year. Total sales until the end of February stood at 1600 up from 1361 last year.

Sales in Nicosia rose 47% followed by Paphos, where sales rose by 22%. Meanwhile sales in Larnaca, Limassol and Famagusta have risen by 13%, 5% and 1% respectively.

Swimming pool laws set to hit tourism revenues

LAST summer, the private apartment complex, the Royal Seacrest in Kato Paphos, fell victim to Cyprus’ overly stringent regulations on swimming pools and had to close one of its major attractions.

Barring a miracle, summer 2019 promises more of the same: swimming will be banned.

The Royal Seacrest is a 104-apartment complex with two communal pools. Most of the apartments are used by holiday makers and only three owners and a handful of long-term renters live at the complex full time.

There was no warning that the two pools, which are separated by a bridge, may not be ‘legal’ until the municipality turned up to do an inspection last August. They told stunned owners the complex didn’t have the necessary swimming pool operating licence because the pools are regarded as public ones.

“This might be their definition, but it is only for use of our complex,” said Eoin Morgan, owner of one of the apartments and chairman of the complex’s management committee.

Authorities recognise only two types of pools. Private pools are those at a house that exclusively serves the needs of the family living there and their guests. Public pools are all other types, including shared pools catering for complexes like the Royal Seacrest. As such they are bound by the welter of regulations one would expect for obviously public facilities such as municipal swimming pools.

This means separate changing and shower rooms for men and women, drinking water fountains, foot baths and independent water analysis.

The list goes on.

“We also need a sanitation certificate, three lifeguards, a health and safety supervisor and a responsible person, and this cannot be a committee or association under the law,” said Morgan.

“In the unfortunate case of a drowning, this person can be liable for criminal negligence and could be prosecuted. This is a big stumbling block for us.”

He added that it is also impossible to find a lifeguard as they are in high demand and even Paphos municipality struggles to employ enough for their needs.

Such stipulations all add up to thousands of euros in extra costs each year and has long led to calls for changes to the swimming pool law so that they are in line with more generous EU regulations.

Cyprus’ current swimming pool regulations date back to 1992.

“All swimming pools are regulated by the legislation and those not complying are in the process for legal action,” said Christos Christou, Paphos municipality’s public health Inspector.

Measures taken by the municipality vary depending on the seriousness of violations. They include both temporary and permanent closure of pools.

“There are also provisions to take the case to the court,” he said.

He said that municipal health inspectors visited almost all of the ‘public’ pools within the municipal boundaries in 2018 and discovered that more than 170 were not covered by any pool licence.

“The absence of lifeguard, no building permits or a certificate of final approval and so on, means that the municipal services are obliged to take the owners or managers to court,” he said.

Paphos municipality is following the law and local authorities have to implement the legislation, he said.

“So whether the legislation is against the European one or there are problems arising from the implementation, this is nothing to do with the municipality.”

Christou added that swimming pools operating at hotels or large projects normally have an operating licence and no serious deficiencies were identified during the inspections of 2018.

Peyia councillor, Linda Leblanc, told the Cyprus Mail that she has long been campaigning to get Cyprus legislation to differentiate between private yet communal pools and those clearly open to the public at large.

She said the process to change the law should be easy enough as EU standards differentiate between pool use and does not allow for just two ‘types’ of pools as Cyprus does.

“I have been lobbying for this law to be changed for years and now it’s time to bring it up again. Cyprus has an obligation to adopt the EU regulations and I have been campaigning for this since 2007,” she told the Cyprus Mail.

Extensive requirements need to be met in order to be granted a licence, and most communal pools in Cyprus fall short of meeting them. It includes particular construction requirements and facilities, a qualified lifeguard on duty and a professional pool maintenance supervisor. The lifeguard, for each pool, must be on duty at all times during the pool’s operating hours.

But under EU standards, complexes that share a swimming pool for the use by the property owners, their guests and families are classed as a Type 3 swimming pool. This means it is covered by different standards to that of a public swimming pool.

“It wouldn’t require lifeguards and the other stipulations.”

Under this European standard, ‘public’ pools are defined as “open to everyone or to a defined group of users, not solely for the owner’s/proprietor’s/operator’s family and guests independently from paying an entrance fee”.

Twelve years ago, Leblanc, along with members of the Cyprus Property Action Group, wrote a letter to the then minister of the interior raising the issue, which she has brought up intermittently since, but as yet, nothing has happened.

In the meantime, Peyia municipality has taken an easier line than Paphos. After discussion with the mayor, Marinos Lambrou, Leblanc was assured that no prosecutions of communal pools in Peyia would be made.

“The mayor and council and very aware of the situation and something need to be done, this law needs to be amended urgently, the law is used all over Europe.”

None of which helps Morgan and others like him.

The complex’s committee decided it had no choice but to close the Royal Seacrest’s pools, surrounding them with locked fencing, which cost 7,500 euros, and a large sign reading ‘Swimming strictly prohibited’. Owners were informed that it would remain closed until a licence is obtained which under current legislation seems a highly unlikely outcome.

“It’s not that we don’t want to comply with the law, we do, but it seems impossible to do so and the cost is astronomical. The start of the season is fast approaching and we can’t see a light at the end of the tunnel,” Morgan said, adding that many of the apartment owners rely on income from renting out their proprieties.

Around one thousand visitors went through the complex during the high season last year and he said many won’t return because the pool is closed, although tantalisingly full of water and maintained.

“This will have a real impact on tourism if it continues, especially businesses nearby,” he said.

“We estimate that our communal fees would have to increase at least a 25 per cent to be able to comply with all of the requirements.”

Morgan said that despite numerous ‘polite’ meetings with the municipality, their position is that the law is followed. He said he is aware that many other people are flouting the law and their pools remain open, but since the committee has been made aware of the requirements, they wouldn’t take that stance.

“Imagine if we ignored the law and something happened.”

Green party MP, Charalambous Theopemptou, told the Cyprus Mail that no new legislation has recently been discussed at Parliament.

“The issue has been discussed for more than a decade and draft regulations were proposed but nothing came of it,” he said.

Swimming pool petition

A petition calling for a fair and reasonable review of the swimming pool regulations for apartment complexes and resorts was set up last August. It has so far garnered over 4,400 signatures but needs another 4,000 to ensure that the government will investigate the matter.

To sign the petition click here.