Cyprus slips to number 14 in Top of the Props chart

Nigel Howarth
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18

THE popularity of Cyprus as a destination for overseas property investors slipped five places in the December ‘Top of the Props’ chart published by TheMoveChannel.com, which looks at the number of on-line enquiries for property in different countries around the world.

The most sought out destination for overseas property investors in December was Spain, with Portugal in second place. France and the USA came in third and fourth, followed by Italy, Brazil and Turkey, with Barbados and Morocco at numbers nine and ten respectively.

According to the Move Channel’s Ivan Radford “The end of 2011 also saw a last-minute rush of attention for Barbados and Morocco. The two new entries to TheMoveChannel.com’s Top 10 replaced Cyprus and Greece at the bottom of the table. Coupled with the rise of the United Arab Emirates, which jumped a hefty eight places to number 12, it suggests that despite Spain’s return to form, investors are still willing to look elsewhere to avoid Europe’s more troubled economies.”

The full breakdown of the December 2011 Top 40 from TheMoveChannel.com is as follows:

RankCountryShareChange
1Spain15.45Up  1
2Portugal9.15Up  2
3France8.98Non-mover
4USA8.96Down  3
5Italy5.27Non-mover
6Brazil5.1Non-mover
7Turkey3.44Up  1
8Bulgaria2.7Down  1
9Barbados2.31Up  4
10Morocco2.29Up  9
11Germany2.24Up  3
12UAE1.85Up  8
13Thailand1.7Up  2
14Cyprus1.63Down  5
15Greece1.57Down  5
16Poland1.39Up  1
17India1.37Up  1
18Canada1.22Up  4
19Malta1.2Down  3
20Cayman Islands1.09Down  9
21Montenegro1.07Up  4
22Belize1.02Up  9
23Costa Rica1
24Hungary0.94Up  3
25Cape Verde0.87Down  13
26Croatia0.87Down  5
27Egypt0.78Down  4
28Switzerland0.74Up  7
29St Lucia0.7Down  5
30Philippines0.46Down  1
31Indonesia0.46Down  3
32Australia0.41Non-mover
33Mexico0.33Down  3
34Jamaica0.33Down  1
35Slovenia0.33Down  1
36Panama0.26Up  13
37Malaysia0.24Up  2
38South Africa0.22Up  3
39Czech Republic0.17Down  13
40Kenya0.13

Investments in Cyprus construction continue to fall

David Crowther
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5

THE sharp decrease of investment in new construction projects in Cyprus is continuing according to figures published earlier today by the Island’s Statistical Service (CySTAT).

CySTAT’s figures reveal that a total of 594 building permits were authorised by the Municipal Authorities and District Administration Offices in October 2011. Compared with the 733 permits authorised in October 2010; a fall of 19%.

In October, building permits were issued for:

  • Residential buildings – 404 permits
  • Non-residential buildings – 111 permits
  • Civil engineering projects – 20 permits
  • Division of plots of land – 56 permits
  • Road construction – 3 permits

The total value of these permits reached €170.5 million and their total area 180.8 thousand square metres.

During the period January to October 2011, 6,345 building permits were issued; a decrease of 13.2% compared to the corresponding period of last year. The total value of these permits fell by 21.8% and their total area by 24.1%.

Residential buildings

In October, 404 permits were approved for the construction of 617 dwellings comprising 288 single houses and 329 multiple housing units (such as apartments and other residential complexes).

This is a fall of 50.9% compared with October 2010 when building permits were issued for the construction of 1,257 dwellings.

Source: Cyprus Statistical Service

During the first ten months of 2011, building permits were issued for the construction of 7,694 dwelling units compared with 12,430 during the same period in 2010; a drop of 4,4736 (-38.1%).

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

Overseas property sales in 2011 lowest for ten years

Nigel Howarth
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24

FIGURES released by the Department of Lands and Surveys earlier today show the extent of the crisis in the Cyprus property industry with overseas sales falling in 2011 to reach levels last experienced a decade ago.

During December, the number of contracts for the sale of property to foreign buyers deposited at Land Registry Offices throughout Cyprus fell 55% to 116 compared with the 258 contracts deposited in December 2010; the largest fall in a single month of 2011.

Sales fell in all areas. In Famagusta, just eight properties were sold to foreigners; a drop of 70% on the twenty seven sold in December last year. Sales in Paphos were down 64%, followed by Limassol (-55%), Nicosia (-36%) and Larnaca (-34%).

Source: Department of Lands and Surveys

Despite some encouraging signs during the first half of 2011 that overseas sales were improving, by the end of the year end the number of contracts deposited had fallen by 19% to 1,652 compared with the 2,030 deposited during 2010.

Lowest numbers for a decade

Overseas sales are at their lowest level since the property market started to take off 2001. At the height of the boom in 2007, 11,281 properties were sold to overseas buyers, but in 2011 that number fell by more than 85% to a mere 1,652.

Source: Department of Lands and Surveys

Could north court ruling have significance for south?

Nigel Howarth
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5

A NORWEGIAN lady living in the occupied areas of Cyprus recently won a court case against the ‘TRNC’ Ministry of the Interior for its alleged negligence in allowing a development to be constructed without Planning Permission.

This is believed to be the first case in which a purchaser has successfully brought an action against a ‘TRNC’ government department for failing to regulate the construction industry. If the ‘TRNC’ government fails to appeal the case or looses an appeal, the ruling will have wide implications for home buyers in the occupied areas who are in a similar position.

Significance for the south?

The construction industry in the south of the Island is also unregulated. Some developments are constructed without the required planning permission or building permits; a situation has led to misery, heartache, and financial loss for many.

In efforts to help alleviate the situation, the government introduced a ‘Town Planning Amnesty’ in April 2010, which lasts for a year. Under its provisions, minor planning infringements may be legitimised although serious infringements will prohibit the sale or transfer of the property concerned.

But properties continue to be built in flagrant violation of the Island’s planning laws because, it appears, that those charged with policing them are either unwilling or unable to seek out and take action against the offenders.

Perhaps the Island’s legitimate government should take note of events in the ‘TRNC’ before it too ends up in court charged with negligence.

Forty thousand non-Cypriots caught in Title Deed trap

Nigel Howarth
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17

NON-CYPRIOTS have purchased more that 51,500 properties since the start of the millennium, but fewer than 11,500 Title Deeds have been transferred, despite government efforts to speed up their issue.

Source: Department of Lands and Surveys

When we last reported on the impact of these delays in October 2008 (see Title Deeds delays affect 30,000 non-Cypriots), there were 29,949 Title Deeds outstanding for properties that had been bought by overseas buyers.

To address the delays in issuing deeds, Interior Minister Neoclis Sylikiotis set up special team made up of senior officials from each of the relevant departments of his ministry in 2009. This team was charged with overseeing teams of officials in each of the Island’s districts that were monitoring progress on the Title Deeds question.

But despite the efforts of Mr Sylikiotis and those of his team, that figure of 29,949 had risen to 40,170 by the end of November 2011. Moreover, it appears that the problem is getting worse as the gap between the number of properties sold to non-Cypriots and the number of Title Deeds transferred to them continues to widen.

Source: Department of Lands and Surveys

Footnote

THERE are almost certainly more than 40,170 properties purchased by non-Cypriots that have yet to have their Title Deeds transferred:

The information published by the Department of Land and Surveys does not include statistics for properties purchased before the year 2000. I personally know a number of people who bought property in the 1990s, the Title Deeds for which have yet to be issued.

Property transfers are not restricted to sales. For example if one partner in a property dies, their share of the property will be transferred to their heirs or beneficiaries – and an elderly couple may transfer a property to their children in efforts to reduce their inheritance tax liability. Also, properties can change hands without there being a written contract of sale.

Natural gas find offshore Cyprus worth tens of billions

Nigel Howarth
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9

NOBLE Energy announced a natural gas discovery at the Cyprus Block 12 prospect, offshore the Republic of Cyprus in a press release issued on Wednesday.

The Cyprus A-1 well encountered approximately 310 feet of net natural gas pay in multiple high-quality Miocene sand intervals.

The discovery well was drilled to a depth of 19,225 feet in water depth of about 5,540 feet. Results from drilling, formation logs and initial evaluation work indicate an estimated gross resource range(1) of 5 to 8 trillion cubic feet (Tcf), with a gross mean of 7 Tcf.

The Cyprus Block 12 field covers approximately 40 square miles and will require additional appraisal drilling prior to development.

“We are excited to announce the discovery of significant natural gas resources in Cyprus on Block 12,” Charles D. Davidson, Noble Energy’s Chairman and CEO, said. “This is the fifth consecutive natural gas field discovery for Noble Energy and our partners in the greater Levant basin, with total gross mean resources for the five discoveries currently estimated to be over 33 Tcf. This latest discovery in Cyprus further highlights the quality and significance of this world-class basin.”

Davidson went on to say, “We would like to thank the Government of Cyprus for their productive cooperation and support in achieving an important outcome for the people of Cyprus and Noble Energy. We look forward to working closely with the Government of Cyprus to develop this discovery in a manner that maximizes value for all stakeholders.”

Noble Energy operates the well with a 70 percent working interest. Delek Drilling and Avner Oil Exploration will each have 15 percent, subject to final approval by the Government of Cyprus.

The Commerce Minister, Praxoulla Antoniadou, said that the gas find is worth tens of billions and that it will satisfy the Island electricity production needs for 210 years and President Demetris Christofias called the find “historic”.

The minister went on to say that “Cyprus is in a position to strengthen the energy security of the EU as we are the only country in the region that belongs to the EU, and at a time when the EU seeks new sources of natural gas”.

 (1) Range of resource estimate based on 75th and 25th percentile probabilities.

About Nobel Energy

Noble Energy is a leading independent energy company engaged in worldwide oil and gas exploration and production.  The Company has core operations onshore in the U.S., primarily in the DJ Basin and Marcellus Shale, in the deepwater Gulf of Mexico, offshore Eastern Mediterranean, and offshore West Africa.  Noble Energy is listed on the New York Stock Exchange and is traded under the ticker symbol NBL.  Further information is available at Noble Energy Inc.

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