Land wrongly designated as Turkish Cypriot

Property wrongly designated as Turkish Cypriot
The Ktima Makenzy event and conference venue built on land owned by a British citizen

THE LARNACA district court has awarded thousands of euros in damages to a British citizen of Turkish Cypriot origin for loss of use of his property in the Mackenzie area of Larnaca, which had been leased by the state to a private citizen who constructed an event and conference venue in 2010.

In its January 21 decision, the court also ordered the government to vacate the property and remove any buildings that have been constructed.

The lawsuit against the state and the guardian of Turkish Cypriot properties had been filed by Raymond Riza, the son and heir of Fikret Ali Riza who died in the UK in June 2000.

Fikret Ali Riza owned the land in Skala parish and was born in Larnaca on February 2, 1926. He emigrated to London in 1951 where he lived until his death.

The property was registered to his son in August 2005. Raymond was born in 1955 and has lived in London since. Like Raymond, Fikret was also a British passport holder.

Raymond sued the state and the guardian, demanding some €958,000 in damages for loss of use between 1975 and 2012, as well as general damages for violating his right to property.

The property in question had been requisitioned, like all properties left behind by Turkish Cypriots in the aftermath of the Turkish invasion in July 1974.

In 1991 it came under the control of the guardian (interior ministry), whose task is to protect the properties until an agreement was reached by the two sides.

The state argued that the property had been taken over based on the law of necessity – passed in 1964 to ensure the smooth running of the state after the Turkish Cypriots left their posts in the government and legislature – and public interest.

It also argued that the owner and his heirs could not exercise their rights, without permission from the guardian, as long as the division continued.

It was also claimed that the guardian does not even have the right or authority to return the property before the division ended.

The plaintiff said he had never asked for the property to be handed back before 2011.

He told the court that his father had always tried to take the land back but was advised that he would not succeed because of the events in 1974. Raymond said that he was also given the same advice.

The court ruled that the owner lived in the UK permanently and was a British citizen, as was the plaintiff.

“The case in question does not concern Turkish Cypriot property,” the court said. “It concerns property that was registered and occupied by a British national.”

The court said the case was no different and should not be treated differently from one concerning a Greek Cypriot or other national “who found out that their property in Cyprus was requisitioned for a certain period and the Republic and the guardian assumed possession and control … because it was wrongly deemed Turkish Cypriot.”

The land had been leased and in 2010 the occupant constructed an events venue, Ktima Makenzy, after securing special permission.

The state argued that no loss had been caused to the ownership since the property was a field located in a nature protection zone, inside a housing area, which received an exemption and was developed commercially.

If the court orders its return, the state said, the owner would receive a better, developed, and improved property.

The court did not appear convinced by the arguments, criticising the guardian for the way the case was handled.

Even if the property fell under the conditions of the law on Turkish Cypriot properties, the state did a shoddy job of protecting it, it said.

“What the defendants allowed to happen was what the guardian was tasked to protect the property in question from, if it were Turkish Cypriot,” the court said.

The court ordered the defendants to vacate the property and remove any constructions.

It also banned them and any third parties from entering, occupying, and using the property. The orders were suspended for five months to give the defendants time to comply.

It also awarded damages worth around €75,000 added to which were varying levels of interest depending on specific time periods and changing rental values.

And it may not end there for taxpayers as the current occupants may also claim compensation “seeing that they have invested large amounts” after apparently securing a long-term lease.

Editor’s comment

The ruling of the Larnaca District Court has implications for a number of other British citizens of Turkish Cypriot origin who own commercial and residential property in the McKenzie area of Larnaca.

Crocodile park permit allegation

Cyprus crocodile park allegationTHE PROPOSED crocodile park near Psematismenos in the Larnaca district is in the news once again, with Green Party chairman Giorgos Perdikis alleging that political pressure was put on the Environment Department by the Agriculture Minister to allow its operation.

Speaking after a House environment committee meeting, Perdikis said that none of the 10 advisors from various government departments and other organisations gave a positive view but that the minister put pressure on the environment authority to issue the permit.

“We have many indications and information that there is a political decision for the project to go ahead,” Perdikis said, adding that the agriculture minister, “who wants the project to go ahead for his own reasons” had put a lot of pressure on the environment authority.

In 2014 the House Environment Committee found the whole idea ‘very suspicious’ while Environment Commissioner, Ioanna Panayiotou, said that Nile crocodiles are a protected species under EU law and that the proposed farm posed a threat to the environment.

In July last year the Animal Party staged a protest outside the Ministry of Agriculture and the Environment, supported by residents of Psematismenos and Tochni who had refused to consider the matter when it was discussed in 2014.

The reasons behind this apparent about-turn by the Cyprus Environment Department are not known.

The crocodiles are to be sourced from a crocodile farm at Moshav Fatzael in Israel that is no longer profitable after selling their skins was banned. The farm was closed to tourists years ago and local councils have demanded its evacuation.

In November last year The Times of Israel reported that a small crocodile had been found in an Israeli settlement, the head of Jordan Valley Regional Council, said: “For safety reasons we don’t want them around. I really don’t know what can be done with them and if there is any country willing to take in more than 1,000 crocodiles.”

In 2011 dozens of crocodiles escaped from the farm, and were caught only after a pursuit lasting several days, during which there was a fear that they would reach Jordan. Council head David Elhayani, who participated in the pursuit, said that he was afraid of additional escapes from the site and that “The 1,000 crocodiles located there constitute a real hazard to residents of the region”.

According to the report Gadi Bitan tried to establish a crocodile park in Cyprus, but had yet to receive the relevant licences.

Following the Environment Department’s decision to issue a licence, the park only needs the permission of the town-planning department to go ahead.

 

Building permits up 3.2 per cent

Cyprus building permits increaseTHE NUMBER of building permits authorised during November 2015 stood at 421 compared with the 408 authorised in November 2014; an increase of 3.2%, according to the latest figures from the Cyprus Statistical Service.

Compared with November 2014, the total area of these permits fell 17.0% to 64,285 square metres from 77,428, while their value fell 17.4% to €69.4 million from €84.0 million.

During November 2015, building permits were issued for:

  • Residential buildings – 287 permits
  • Non-residential buildings – 90 permits
  • Civil engineering projects – 10 permits
  • Division of plots of land – 22 permits
  • Road construction – 12 permits

During the first eleven months of 2015 the number of building permits authorised for both residential and non-residential projects has fallen by 0.2% to 4,581 compared with the 4,588 authorised in the first ten months of 2014, while their value has risen by 14.5% to €915.5 million and their area has increased by 10.9% to 799.5 thousand square metres.

Building permits – new home construction

The 287 residential permits approved in November provided for the construction of 255 new dwellings comprising 152 single dwellings and 103 multiple dwelling units (such as apartments, semis, townhouses and other residential complexes).

This is an increase of 6.7% compared with November 2014 when building permits were issued for the construction of 239 new dwellings.

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

Month 2014
(Dwellings)
2015
(Dwellings)
Increase/
Decrease
%age
Change
January 175 204 29 16.6%
February 229 384 155 67.7%
March 193 297 104 53.9%
April 254 147 -107 -42.1%
May 223 276 53 23.8%
June 277 239 -38 -13.7%
July 196 337 141 71.9%
August 227 199 -28 -12.3%
September 308 314 6 1.9%
October 271 290 19 7.0%
November 239 255 16 6.7%
Total 2,592 2,942 350 13.5%

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

UK Expats #YourVoteMatters in the EU referendum

High Commissioner Ric Todd EU Referendum
British High Commissioner Ric Todd to expats in Cyprus: Your vote matters!

THE REFERENDUM to determine whether the UK remains part of the EU is due to take place before the end of 2017. There are as many as 5.5m UK citizens living overseas who may have views on the matter but may not know if they are eligible to take part, and if so how to do this.

Who can vote?

To be able to vote you need to have been registered to vote in the UK in the last 15 years, know your National Insurance number, and have your passport to hand (if you don’t have a National Insurance number you can still register, but you may have to supply more information to show who you are).

If you were too young when you left the UK to have been registered, then you can register as an overseas voter if your parents (or guardians) were registered in the UK in the last 15 years.

How can I register?

You can now register online It takes five minutes and you can choose to vote via post; proxy (you designate someone you trust to vote on your behalf in the UK); or in person at a polling station in your constituency (but of course if you live overseas you’re unlikely to be able to do this).

With the date of the referendum as yet unknown, it’s best to register sooner rather than later so you can be sure you’re registered in time. If you are not registered you can’t vote.

You can still download and post back paper forms. But remember to return your completed form as far in advance of the deadline as possible. The actual deadlines for registering to vote and applying for an absent vote will be set once the date of the referendum is known.

How easy is it to register?

Work was carried out ahead of the 2015 UK Parliamentary General Election to reach British citizens abroad. This work increased the number of overseas electors by 300% and also taught us a lot. One thing we learnt was that the sooner overseas voters get registered to vote, the more time they have to arrange for a method of absent voting. It should be easier to vote by post for this referendum as the timetable for postal votes has been extended to allow theses to be sent out even earlier than usual, giving you a bit more time to receive, complete, and return your ballot.

Ric Todd

Further reading

UK Expats #YourVoteMatters in the referendum on the UK’s membership of the EU

Register to vote

Online voter registration (have your National Insurance number or your passport if you’re a British Citizen living abroad)

Cyprus real estate market 2016

Cyprus real estate 2016 - Delfi & PartnersDELFI Partners & Company’s report ‘Cyprus Real Estate Market Expectations & Forecasts’ concludes that the island’s economy will bounce back from the recession in the next five years, and that how the banking sector deals with NPL’s distressed assets and the potential need for recapitalisation is pivotal to a smooth recovery.

As well as providing an overview of the current state of real estate sector, the report provides forecasts for the main asset classes – office, retail and residential.

It considers that the island’s banking sector has the potential to make or break the recovery and that there is great potential for transactions well below the market value and extremely attractive short term returns. However much depends on whether the banking sector concerns regarding the level of NPLs and foreclosures have any harmful effects on the real estate market.

Delfi predicts that in isolated cases, “where the demand for residential property is low and distressed assets result in excess supply, further discounts of up to 40% of market value are not unlikely”.

Further reading

Cyprus Real Estate Market Expectations & Forecasts – January 2016

Property prices rose in third quarter

Cyprus property pricesBASED on figures published by Eurostat, property prices in Cyprus rose by 2.5% in the third quarter of 2015 compared to the third quarter of 2014 and follow a 2.4% in the second quarter of 2015.

The reported increase is not supported by the Cyprus Central Bank, which recently reported a 3.7% annual decrease in the third quarter, or RICS (Cyprus) which also reported falling prices.

According to Eurostat, the highest annual increases in house prices during the third quarter of 2015 in EU Member States were recorded in Sweden (+13.7%), Austria (+9.3%), Ireland (+8.9%) and Denmark (+7.2%) – and the highest falls were observed in Latvia (-7.6%), Croatia (-3.0%), Italy (-2.3%) and France (-1.2%).

In the same report, the highest quarterly increases were recorded in Malta (+6.2%), Ireland (+4.5%), Austria (+4.1%), Sweden and the United Kingdom (both +3.9%) and the largest falls in Hungary (-5.9%), Slovenia (-3.5%) and Estonia (-1.9%).

It is known that Eurostat, the Cyprus Central Bank and RICS (Cyprus) employ different methodologies to calculate their indexes, but it is difficult to understand the wide variation.

Further reading

Eurostat news release 14/2016 – 20 January 2016