High-rise not needed in Paphos

AFTER it was revealed this week that Paphos municipality has received ten applications for high-rise buildings, a 500-strong group Movement to Save Paphos says there is no need for such construction in the district and an expert body should be formed to offer proper advice before it is too late.

According to Antonis Trakkides, a Geroskipou councillor and member of Movement to Save Paphos, high-rise buildings are not the way forward for Paphos.

“We can see how so many people have reacted in Limassol, and now this ‘new fruit’ has spread to Paphos,” he told the Sunday Mail. “There are already three approved in Geroskipou, and 10 applications in Paphos town and day by day they are increasing.”

On Tuesday, Paphos municipality announced – for reasons of transparency – that it has received 10 applications for the construction of high-rise buildings of between eight and 20 floors in areas such as Kato Paphos and Anavargos.

Mayor of Paphos Phedonas Phedonos spoke of the pros and cons of such constructions, saying they could become a landmark for a city and yield multiple benefits but also negatively impact the environment and obstruct views and visibility.

“We are so quick to start something new and it’s only afterwards, when it’s too late that we realise what we have done was not the best,” Trakkides said.

“It will be similar to Spain, tall buildings and empty beaches.”

He said that he is particularly concerned about Geroskipou, as it has obvious attractions for investors with its swathes of unspoilt, potential building land by the sea.

“We don’t want huge skyscrapers along the coast. The entire council, apart from me, voted in favour of these buildings.”

He was referring to the three licences for tall buildings approved by the council.

The first licence is for more than one building and covers Eden city, the controversial €3.4 billion planned development by Hungarian investor Sandor Kenyeres. The licence covers the construction of an artificial ‘luxury lifestyle’ island, a university, five-star hotel-resorts, multi-floor towers, medical centre, event and conference facilities and a marina.

The company was granted a town planning permit to proceed with the construction of the five-star, 221 room Peninsula Hotel Resort and two housing blocks of 12 storeys and 122 apartments on church-owned land.

The developers had wanted permission to build 14 floors but it was vetoed due to being on the flight path.

The other two licences granted are for further high-rises in Geroskipou, one for a 12-storey building, the other for 10 floors.

Mayor of Geroskipou Michalis Pavlides told the Sunday Mail that the licence for the Hungarian development came with a proviso of 23 stipulations.

These included permits from the environment and archaeological departments, the creation of a parking area and the environment enhancement of the area.

“We did the best we could and I believe the investors now have everything in place and work will get underway on this project in the winter,” he said.

Although he was among those who voted in favour of the licences, he said he believed they were enough for the area.

Like Trakkides, he said he was concerned about long-term planning and favours bringing in specialist consultants from abroad to carry out the necessary studies and examinations and make recommendations.

Proper town planning guidelines are needed, he said, as are new laws.

“We don’t have any such people here and we need experts,” he said.

“In Cyprus, unfortunately, they decide to build anything, anywhere. There should be specific laws and guidelines, which there currently are not, and the climate of each area should be examined. Taller buildings create a different environment which is not suitable for most places in Cyprus.”

The mayor noted that you only have to look at what’s happened in Limassol to see that, as the buildings are “in the wrong place”.

“We are not Dubai,” he said.

The Limassol skyline has seen a rapid alteration in recent years, with many tall buildings being constructed along its coastline.

In the first three months of this year alone, the government issued building permits for 25 high-rise buildings, most of them in Limassol. Sixty more applications are pending.

Five more high-rise towers are set to be built in the city this year alone.

In February, the Olympic resort, a 35-floor building, also received a conditional green light after an environmental assessment.

The building will house apartments, swimming pools, a spa, a gym and parking and will become the second high-rise in the area. Construction is expected to start in 2018 at a cost of €80 million and be completed within three years.

Trakkides warned against Paphos becoming “another Limassol” and said he is concerned that hotel owners in Geroskipou are already making enquiries about pulling down their properties and building high-rise constructions to sell on to investors.

“This is a big worry, we only have one industry in the district of Paphos and that is tourism. If we get investors such as Chinese or Russian to give us these millions once, then what? We are not thinking ahead. What about the people living and visiting Paphos who like it as it is today?”

His concerns are not just over aesthetics, but safety.

He questioned what would happen in cases of emergency in tall buildings, as Cyprus is not ready or equipped for such instances. He said that he is not against development as such but stressed that it needs to be done in the right way, and “not this way”.

“We don’t want this occurrence to spread around with everyone putting in applications to build tall buildings on different bits of land.”

He said such constructions shouldn’t be allowed in sensitive areas and that it is important where, how high, who is allowed to develop these buildings are decided in advance.

“They currently have to be on a piece of land the size of 2,000m2 and above. We really need a special body, with international experts to sort this out.”

Small rise in Cyprus property sales (Update)

Cyprus property salesTHE NUMBER of property sales contracts deposited at Land Registry offices across the Republic of Cyprus during June 2018 rose just 2 per cent compared to June 2017 according to official figures published by the Department of Lands and Surveys.

This follows increases of 23% in May, 29% in April and 23% in March and is the smallest increase since February 2017 (when sales fell 9 per cent.)

During June a total of 858 contracts or the sale of residential and commercial properties and land (building plots and fields) were deposited at Land Registry offices across Cyprus, compared with the 843 deposited in June 2017.

(The figures include an unspecified number of properties acquired by banks as part of loan restructurings.)

Of those 858 contracts deposited, 385 (44.9%) were for properties purchased by non-Cypriots.

While sales in Paphos and Nicosia fell by 23% and 10% respectively, they rose in the remaining three districts.

In percentage terms Larnaca led the way with sales rising by 39% followed by Famagusta, where sales rose by 33% and Limassol, where sales rose 11%.

Total Property Sale Contracts – 2017/2018 Comparison

District Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Nicosia 2017 72
73
79
80 118 162 124 76 87 117 170 306
2018 146 96
126
117
153
146
Famagusta 2017 21
19 40
29
38 46
59 47 57 51 52 169
2018 48 52
40
52 79
61
Larnaca 2017 102
100 113
69
119 96
103 88 107 111 151 181
2018 112 99
116
83 113
133
Limassol 2017 132
177 232
192
298 304
289 201 203 306 321 532
2018 225 256
314
246 282
338
Paphos 2017 96
87 162
136
183 235
184 160 148 183 212 349
2018 164 163
172
157 201
180
Totals 2017 423
456 626
506
756 843
739 572 602 768 906 1537
2018 695 666 768 655 828 858

Property sales – year to date

During the first half of 2018 the number of contracts for the sale of property deposited at Land Registry offices has risen 24% to 4,470 compared to the 3,610 deposited during the first half of 2017.

In terms of the number of properties sold this year Limassol is in pole position with 1,661 sales, followed by Paphos with 1,037, Nicosia with 784, Larnaca 656 and finally Famagusta with 193.

Overseas property sales

The Land Registry figures reveal that a total of 385 property sale contracts were deposited by non-Cypriots during June 2018. Of those 126 were deposited by EU citizens and the remaining 259 by non-EU citizens, but we cannot quantify the number of non-EU citizens who bought property with a view to applying for citizenship.

Limassol was the most popular district with the overseas market with the number of property sales contracts deposited reaching 131. Paphos recorded 125, Larnaca 72, Famagusta 34 and Nicosia 23.

Overseas Property Sale Contracts – 2018

District Source Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Nicosia EU 10 8 9 10
9
8
Non-EU 10 4 13
14 9 15
Total 20 12 22 24 18 23
Famagusta EU 15 24 8
12 19 16
Non-EU 36 10 14
28 26 18
Total 51 34 22 40 45 34
Larnaca EU 9 9 9
6 9 20
Non-EU 43 46 40
36 49 52
Total 52 55 49 42 58 72
Limassol EU 15 17 32
17 19 22
Non-EU 103 87 83
67 94 109
Total 118 104 115 84 113 131
Paphos EU 41 58 55
49 70 60
Non-EU 105 97 74
87 88 65
Total 146 155 129 136 158 125
Totals EU 90 116 113
94 126 126
Non-EU 297 244 224
232 266 259
TOTAL 387 360 337 326 392 385

During the first half of 2018, a total of 2,187 property contracts have been deposited by overseas buyers, with 665 deposited by EU nationals and 1,522 by non-EU nationals.

Paphos maintains its position as the most popular spot for overseas buyers with sale contracts reaching 849, followed by Limassol with 665, Larnaca with 328, Famagusta with 226 and Nicosia with 119.

Cyprus Property Sale Contracts 2000 – 2018

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
2018 (June)
2,187 2,283 48.9% 4,470
Totals
63,211 149,798 29.7% 213,009

Permits for new homes up 44.6 per cent

Cyprus: building permits for new homes up 44.6 per centTHE TOTAL number of building permits authorised in Cyprus during April 2018 stood at 469 compared with the 410 authorised during April 2017; a rise of 2.0% according to official figures released by the Cyprus Statistical Service.

Compared to April 2017 the total value of these permits rose by 18.9% to reach €106.6 million, their total area rose by 15.8% to reach 101.5 thousand square metres and provided for the construction of 418 new homes.

During April 2018, building permits were issued for:

  • Residential buildings – 341 permits
  • Community buildings – 0 permits
  • Non-residential buildings – 75 permits
  • Civil engineering projects – 18 permits
  • Division of plots of land – 24 permits
  • Road construction – 11 permits

Building permits for new homes

The 314 residential building permits approved in April provided for the construction of 418 new homes (dwellings). These comprised 262 single houses (compared with 233 in April 2017) and 79 multiple housing units such as apartments, semis, townhouses and other residential complexes (compared with 62 in April 2017); a rise of 27.4%.

Of those 418 new homes, 119 are destined for Limassol, 166 for Nicosia, 68 for Paphos, 48 for Larnaca, and 17 for Famagusta.

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%
Totals 1,465 1,792 327 22.3%

During the first four months of 2018, 1,984 building permits were issued compared to the 1,861 issued in the same period last year. The total value of these permits increased by 27.5% and the total area by 24.5%.

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

Trapped buyers breakthrough

BANKS and the legislature appear to have to struck a gentlemen’s agreement that will resolve the matter of trapped buyers who are unable to get Title Deeds, it emerged on Tuesday.

In return for the approval of bills that would make it easier for banks to collect their dues, the bank association agreed on Tuesday not to raise any objections over the issue of trapped buyers without Title Deeds as long as the transaction was done in good faith.

“We acknowledge the effort the country and parliament are making and in turn we must also contribute,” Christakis Patsalides, chairman of the association, told the House finance committee.

In a bid to sort out the so-called trapped buyers mess, parliament in 2015 passed a government bill granting the head of the land registry the authority to exempt, eliminate, transfer and cancel mortgages and or other encumbrances, depending on the case and under certain conditions.

The law sought to resolve the problems created by the failure to issue Title Deeds to people who had paid for their property, either because the property was mortgaged by the developer, or the state could not go ahead with the transfer because of outstanding taxes.

Since developers’ land and buildings were counted as assets that need to be offset against their debt to banks, this gave lenders a claim on people’s properties that had been mortgaged by developers.

However, following a string of court decisions in cases where banks objected to the law, the land registry suspended procedures, as authorities contemplated their next move.

Ruling Disy chief and committee chairman Averof Neophytou welcomed the pledge, which would help tackle the bad reputation Cyprus gained abroad.

“If a buyer has fully paid off his flat in good faith, irrespective of whether the developer continues to owe to the bank, the bank will stop the objections, appeals, and court procedures and will give their consent to these owners,” Neophytou said.

He added that it was an important day for thousands of Cypriots and foreign nationals because they can finally get a Title Deed provided the transaction was in good faith without deception or fraud involved.

The deal is essentially a gentlemen’s agreement since legislating would violate the constitution. Members of the committee appeared reserved as to whether the banks would honour it.

“No one has seen Averof’s rage, let them dare breach their pledges and this rage won’t be limited to shouting but sanctions,” Neophytou warned.

The banks also agreed before the committee not to chase one single guarantor when one of them dies or goes bankrupt, but to distribute their share among the others.

Editor’s note

The undertaking is a gentlemen’s agreement as it cannot be included in a law because of constitutional restrictions.

Paphos marina contract awarded

AFTER nearly three decades of bureaucratic delays and legal wrangles, the contract to build the Paphos marina has been awarded to Pafilia by the ‘new’ Marina Management Committee.

According to the Greek language newspaper Phileleftheros, the committee had been examining the issue for the past two months before informing Pafilia of its decision yesterday.

The Paphos marina at Potima bay between Kissonerga and Pegeia will be a crucial project for Paphos. When finally built, it will have a capacity of 1,000 berths. The project will take approximately three years to be completed.

In addition to berthing for 1,000 vessels, the project will include more than 42,000 square metres of residential and commercial developments.

The Paphos marina project has been under discussion since initial studies were carried out nearly 30 years ago.

In 2008 the project was awarded to the Pandora Group (Leptos) following a hotly contested bidding process with Aristo and Pafilia.

But Aristo, the runner-up in the contest, objected to the award alleging irregularities in the submission of documents required for the tendering process.

Aristo’s objection was upheld and a committee was set up to examine the situation. Subsequently Pandora’s contract was annulled and the contract to build the marina was awarded to Aristo.

Pandora then decided to take the matter to the Supreme Court on several legal grounds. It claimed that it was not consulted during the revision procedures where their initial tender was re-examined.

In December 2015 the Supreme Court ruled in favour of Poseidon Grand Marina of Paphos, a joint-venture in which Aristo was a major stakeholder – Poseidon were subsequently awarded the contract in May 2016.

But although it had won the legal battle the Poseidon consortium failed to supply adequate evidence of its ability to finance the project and Pafilia, which was next on the list of tenders, was asked to provide evidence that it could fund the construction and running of the marina..

Poseidon appealed to the Supreme Court that the committee responsible for overseeing the Paphos marina tender process was unlawful – and in January 2018 their appeal was upheld.

The Council of Ministers appointed a ‘new’ Marina Management Committee in March this year to examine documents submitted as part of the marina tender process and has just awarded the contract to Pafilia.

It may be third time lucky for Pafilia but we will have to see if any of the other bidders mounts a legal challenge.

[youtube=https://www.youtube.com/watch?v=cXy-c9iOpsA&w=470&rel=0]

High-rise developments coming to Paphos

Cyprus: High-rise developments coming to PaphosTHE PAPHOS Municipality’s Town Planning Committee of the Paphos Municipality has given the green light for permits to be issued for the construction of two 20-storey high-rise buildings on Poseidonos Avenue next to the Aloe Hotel.

The development will include a green space of 3,000sqm. and a public car park for 150 vehicles. The intention is to build two high-rise blocks of luxury apartments, shops and houses.

The Planning Committee has also given the go-ahead for the construction of three further multi-storey buildings. Two of these will be built by Leptos in the hospital area of 8 and 10 storeys respectively, and a further 12-storey building by another company in the Tomb of the Kings area.

An application by Aristo to build a 14-storey building at Evagoras Pallikarides Avenue in the city centre was put on hold due to reservations expressed by some planning committee members who asked for more time to study the application.

We understand that ten applications for high-rise developments in Paphos have been submitted and that more are expected.