Loan deal for heat-proofing roofs

Angelos Anastasiou
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Loan deal for heat-proofing roofs

heat-proofing Cyprus roofsTHE CO-OPERATIVE Central Bank will offer loans for heat-proofing roofs at favourable terms, in collaboration with the employers’ association (OEV), it was announced on Monday.

At a joint news conference, a scheme was unveiled offering loans of up to €10,000 at 3 per cent interest, with no assets as collateral, for a maximum repayment period of seven years, and with charge-free early repayment.

In a statement, CCB director Nicolas Hadjiyiannis said that “the Co-operative Central Bank, being the largest retail bank and clearly locally focused, today inaugurates a broader collaboration with OEV, as well as its entry to the field of microlending”.

“The goal is to address Cypriots’ needs on issues relating to green energy, which significantly contribute to environmental protection and economic growth,” Hadjiyiannis said.

According to the statement, it is an “innovative scheme developed with the support of the Ministry of Energy, Commerce, Industry, and Tourism, aiming at promoting energy-efficiency in households, cost savings, and improving living conditions, while safeguarding high-quality heat-proofing services”.

In order to safeguard the evaluation criteria for the quality of heat-proofing services, OEV has created a voluntary Heat-proofing Technicians’ Registry, in which “legal entities can apply to be registered to” and which will be available to the general public.

“This voluntary registry will be taken into account by the Co-operative Central Bank in assessing applications for a low-interest heat-proofing loan,” Hadjiyiannis said.

The scheme is available to individuals who are permanent residents of Cyprus.

“It offers an attractive interest rate of 3 per cent, without asset collateral, for a maximum €10,000, with a maximum repayment period of seven years, and no-charge early repayment,” the CCB’s director said.

“No contribution is required of the customer, as the scheme covers up to 100 per cent of the cost of heat-proofing, and no administrative cost is incurred other than a €10 fee to assess the calculations of thermal permeability submitted by the applicant.”

What is required, he added, is one creditworthy guarantor, as well as a written tender by a company found in OEV’s registry, and a study calculating thermal permeability by an expert.

More information on the scheme (in Greek) is available at: ????????????? ??? ??????????? ???????????? ?????? ?? ??????.

Editors note

Non-Greek speakers may use the in-built translator in the Google Chrome web browser.

More new homes under construction

Nigel Howarth
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More new homes under construction

New homes in CyprusTHE NUMBER of building permits authorised in February 2017 stood at 444 compared with the 436 authorised during the same period in the previous year; a rise of 1.8 per cent according to official figures released by the Cyprus Statistical Service.

The total value of these permits rose by 15.0% to €92.4 million compared to February 2016, while their total area rose by 27.4% to 94.1 thousand square metres.

During February 2017, building permits were issued for:

  • Residential buildings – 318 permits
  • Non-residential buildings – 71 permits
  • Civil engineering projects – 13 permits
  • Division of plots of land – 28 permits
  • Road construction – 14 permits

Building permits for new homes

The 318 residential building permits approved in February provided for the construction of 383 new homes comprising 200 single houses and 183 multiple housing units (such as apartments, semis, townhouses and other residential complexes); an increase of 22.8% compared with February 2016 when building permits were issued for the construction of 312 new homes.

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

Month 2016
(Dwellings)		 2017
(Dwellings)		 Increase/
Decrease		 %age
Change
January 243 381 138 56.8%
February 312 383 71 22.8%
Totals 555 764 209 37.7%

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

Slight fall in property sales (Update)

Nigel Howarth
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Slight fall in property sales (Update)

Cyprus property salesCYPRUS property sales fell 2 per cent in April 2017 compared to April last year according to the official statistics published by the Department of Lands and Surveys.

During April a total of 506 contracts for the sale of residential and commercial properties and land (building plots and fields) were deposited at Land Registry offices across Cyprus, compared with 514 in April 2016.

Of those 506 contracts, 379 (70%) were deposited by Cypriot purchasers and 127 (30%) were deposited by overseas purchasers.

Although property sales rose in Paphos, Limassol and Nicosia rose by 27%, 16% and 1% respectively, sales fell by 46% in Larnaca and 17% in Famagusta.

Total Property Sale Contracts – 2016/2017 Comparison

District Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Nicosia 2016 54
 79
 82
 79 82 98 102 64 81 80 86 144
2017 72 73 79 80
Famagusta 2016 22
 35 33
 35
 24 34
 27 41 32 47 19 87
2017 21  19 40 29
Larnaca 2016 78
 108 121
 127
 103 120
 123 81 121 111 114 153
2017 102  100 113 69
Limassol 2016 92
 179 197
 166
 145 222
 220 129 195 270 249 432
2017 132  177 232 192
Paphos 2016 81
 100 106
 107
 120 183
 153 136 127 126 183 318
2017 96  87 162 136
Totals 2016 327
 501 539
 514
 474 657
 625 451 556 634 651 1134
2017 423  456 626 506

During the first four months of this year sales are up 7% compared with the same period last year. But while sales in Paphos, Limassol and Nicosia have risen by 22%, 16% and 3% respectively, they have fallen by 13% in Famagusta and by 12% in Larnaca.

Domestic property sales

Property sales to the Cypriot market in April remained almost steady with one fewer property sold compared to April 2016.

Sales in Larnaca, Famagusta and Nicosia fell by 46%, 30% and 10% respectively. Meanwhile sales in Paphos rose by 43% and sales in Limassol rose by 25%.

Domestic Property Sale Contracts – 2016/2017 Comparison

District Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Nicosia 2016 43
 70
 10
 69 68 92 94 58 75 70 73 116
2017 63 69
 71
 62
                
Famagusta 2016 20 31 21
 33
 24 7 19 32  22  37 9  72
2017  20  17  24  23                
Larnaca 2016 68 96 85
 91
 93 75 91 67  90  81 74  114
2017  77  80  85  49                
Limassol 2016 68 158 145
 122
 126 162 156 101  142  202 196  307
2017  97  130  176  152                
Paphos 2016 61 72 59
 65
 105 126 74 88  98  83 111  171
2017  73  47  82  93                
Totals 2016 260 427 382
 380
 416
 462
 434 346  427  473 463  780
2017  330  343 438
  379                

During the first four months of this year domestic sales are up 3% compared with the same period last year. But while sales in Paphos, Limassol and Nicosia have risen by 15%, 14% and 4% respectively, they have fallen by 20% in Famagusta and by 14% in Larnaca.

Overseas property sales

Property sales to the overseas (non-Cypriot) market during April 2017 fell 5% compared to the same month last year with 127 contracts of sale deposited compared with 134 in April 2016.

Although sales in Larnaca and Limassol fell by 44% and 9% respectively, these falls were more than outweighed by a 200% increase in Famagusta (from a very low base), an 80% increase in Larnaca and a 2% increase in Paphos.

Overseas Property Sale Contracts – 2016/2017 Comparison

District Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Nicosia 2016 11
 9
 10
 10 14 6 8 6 6 10 13 28
2017 9
 4
 6
 18
Famagusta 2016 2 4 12
 2
 0
 27
 8 9 10 10 10 15
2017 1 2 16  6
Larnaca 2016 10 12 36
 36
 10
 45
 32 14 31 30 40 39
2017 25 20 28  20
Limassol 2016 24 21 52
 44
 19
 60
 64 28 53 68 53 125
2017 35 47 56  40
Paphos 2016 20 28 47
 42
 15
 57 79 48 29 43 72 147
2017 23 40 80  43
Totals 2016 67 74 157
 134
 58
 195
 191 105 129 161 188 354
2017 93 113 186  127

During the first four months of this year sales to the overseas market are up 21% compared with the same period last year. But while sales in Paphos, Limassol and Famagusta have risen by 36%, 26% and 25% respectively, they have fallen by 3% in Nicosia and by 1% in Larnaca.

Cyprus Property Sale Contracts 2000 – 2017

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 (April) 521 1,490 25.9% 2,011
Totals
 59,139 142,677 29.3% 201,816

 

Bank lending systems stymie Cypriot buyers

Cyprus News Agency
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Bank lending systems stymie Cypriot buyers

Bank lending systems stymie Cyprus property buyersCHAIRMAN of the Cyprus Real Estate Agents Association (SKEK) Marinos Kinegirou has said that the complicated lending procedures followed by the banks are a reason that leads to the stagnation of purchases of real estate by Cypriots.

In contrast, Kinegirou said that the real estate market improves every year, when it comes to foreign buyers, as a result of the incentives introduced by the Government.

“The market is progressing better year after year, there is confidence from buyers” Kinegirou told the Cyprus News Agency.

“Due to the incentives given, there are foreign buyers and every year the situation is better” he noted.

He said that big developments, multi-storey luxury buildings, attract buyers of a higher category, who buy expensive properties in order to secure permanent residence or a Cypriot passport. At the same time, foreigners buy less expensive properties for holiday homes.

Unfortunately, he noted, “there is still stagnation among Cypriot buyers. Even though the situation has improved this year, it is not at the level we wanted it to be”.

He added that “although real estate prices are currently low, and it is a good time for Cypriots to buy properties, unfortunately we don’t see the purchases we should, compared to foreigners”.

The reason behind this, Kinegirou explained, is because the banks still maintain red tape and follow complicated procedures when it comes to lending.

“The announcements of the banks and their advertisements have nothing to do with reality. Not only when it comes to lending, but also when it comes to deposits as well” he noted. According to Kinegirou, the banks ask depositors who want to tap their deposits to purchase a property, to submit a lot of documents.

He said that foreign buyers who transfer millions of euro to Cyprus to purchase properties also face complicated procedures.

Kinegirou noted that as the interest rates are low and the rents are rising, it is now a good time for Cypriots to consider buying property. Rents, he said, are rising because many apartment owners prefer to rent by the day, due to the upward trend of tourism.

The Chairman of the Cyprus Real Estate Agents Association said that discussions about the Cyprus problem also cause concerns among the Cypriot buyers, however he expressed the view that property prices will not be affected by whatever solution of the Cyprus problem, because of the foreign buyers and the small size of the real estate market in Cyprus. In the worst case scenario, he said, prices will remain the same, but they will not drop.

– Cyprus News Agency

Bank contracts for buying property

Cyprus News Agency
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Bank contracts for buying property

Bank contracts for purchasing property in CyprusTHE HOUSE of Representatives plenary unanimously voted on Friday two bills into law, thus transposing EU rules into national law on contracts with credit institutions for the purchase of property.

The new legislation regulates mortgages which relate to property which will be the residence of the consumer, as well as credit contracts without collateral for amounts over €75,000 for the renovation of property which is used as a residence.

The two bills had to be voted today, because as House President Demetris Syllouris explained addressing the plenary, the Republic of Cyprus is in danger of getting fined by the European Commission.

The new legislation creates a high level of consumer protection in the area of credit contracts by making it mandatory to review the credit capability of the consumer before offering the loan.

Such assessment should take into account factors such as the prospects the consumer has of keeping up with payments.

It also defines the licencing terms and preventative oversight relating to the establishment and monitoring of credit brokers and non-credit institutions.

The legislation passed by Parliament also stipulates the information which should be included in advertising relating to the provision of consumer loans for the purchase of property, the provision of pre-contractual information to the consumer, by way of a standardised European information bulletin, the calculation of the total annual charge rate for comparative purposes, loans in foreign currency, the right of early repayment of loans and penalties for not abiding with the legislation.

– Cyprus News Agency

Zero rent increase – wrong decision

George Mouskides
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Zero rent increase – wrong decision

No Cyprus Property rent increase until 2019THE COUNCIL of Ministers has wrongly decided that there will be no rent increase for properties that fall under the Tenancy Law. The decision concerns the period between 22/04/2017 to 21/04/2019. What is the message sent to both local and foreign investors with this decision?

The 1983 Tenancy law regulates properties built before 2000 in specific controlled areas and for which there is no rental agreement in force. It is an anachronistic legislation aimed to protect tenants in state of emergency periods, like the Turkish invasion in 1974. The law would serve a purpose in periods where there is a little supply of rental properties and considerable demand. Legislators were aiming to protect people from unusually high rents.

Market trends during the last decade, as well as current conditions, are pointing to the exact opposite direction. There is an abundance of properties and a few interested tenants. The government sets the ceiling percentage rise every two years for the following 24 months. The ceiling was being set at 14% for some decades. Then it was reduced to 8% for 2011-2013 and then was set at 0% for 2013-2015 and 2015-2017.

Questionable

The present administration has been advertising for quite some time that the economy is on the rise, growth is picking up, all supported by a healthy Gross National Product, (GNP). We all expected a rise of rent ceilings for 2017-2019 based on the above claims. We had been expecting the rise to be anything between 5%-10%. Despite all supporting facts the government, in all its wisdom, decided to stick to 0% increase.

The decision gives rise to a number of questions:

  1. How will foreign investors invited to put money into the Cyprus property sector interpret this decision? They will surely infer that property prices as well as rents are not expected to rise in the future – next 2 years at least.
  2. What will happen to the huge reductions offered by landlords and enjoyed by tenants during the 2013 economic crisis? When should they expect the rents of their properties to bounce back?
  3. What is to become of the owners unable to service their loans due to low rents ending up in the non-performing loans zone?

Sluggish justice

Taking all these into account it might not be wise to buy a property intending to rent it out. Low rents, in relation to the purchase value of the property are the result of the tenancy law. It is also the result of a bad economy during the last decade.

On top of everything else owners have to struggle with tenants who never pay their rent and cannot be forced to vacate the properties due to the tenancy law and a snail-pace legal system.

The government and its ministers will be doing all a favour if they come forward and explain the thinking behind such a wrong decision. Are they trying to reduce the market to ruins? Are they trying to discourage new investors, or are they perhaps telling us, indirectly, that the economy is failing?

About the author

George MouskidesGeorge Mouskides is the General Manager of FOX Smart Estate Agency and Chairman of the Cyprus Association of Property Owners (????).

 

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