Saturday, March 11, 2023

RUSSIANS FIRST IN THE REAL ESTATE MARKET IN CYPRUS

Filenews 10 March 2023



The first place by far continues to be held by the buyers of real estate from Russia in the Cypriot market, according to the data of the Land Registry for purchases and sale documents in the months of January and February 2023. The data were presented by the Director of the Department of Lands, Elikkos Elias, speaking at the 5th edition of the Property Show in Nicosia, noting that these data should be given to entrepreneurs involved in the real estate sector. He added that on the list, Russian buyers are followed by the British and then the Israelis, Greeks, Lebanese and Germans.

The Property Show, which will remain open throughout the weekend of March 11-12, was inaugurated on Friday afternoon at the Royal Hall in Nicosia, by the Minister of Energy, Commerce and Industry, Papanastasiou who congratulated the organizers and noted that the Ministry's intention is to strengthen this sector.

The inauguration was preceded by a series of speeches by representatives of organizations and bodies related to the real estate market, both from Cyprus and Greece. Themis Polyviou welcomed the opening of the exhibition on behalf of the organizing company FMW, expressing his satisfaction for the fifth consecutive year of the event.

Speaking at the event, Christos Petsidis of the CCCI, under the auspices of which the event is located, confirmed the dynamics of the real estate economy, despite the problems created by the pandemic and the war in Ukraine, noting that the sector is in intense mobility, presenting revenues of many billions of euros.

He did not fail to express the Chamber's concern about the increase in the cost of building materials, as well as the rise in loan rates. "The real estate sector has a future and prospects and all types of real estate are attracting interest from buyers, locals and foreigners", concluded Mr. Petsidis, pointing out that we need "to address the various problems and weaknesses in order to keep this source of income open for all of us".

Subsequently, the Director of the Department of Lands and Surveys, Elikkos Elias, underlined the multidimensional role of the Department in the field of real estate, and pointed out its contribution to the economy. Especially after the cyberattack on the Department's website, which put it out of business since last Thursday and possibly until next Monday, he said that "we know what this means for the economy and for the country".

Referring to data that reflect mobility in the real estate sector, Mr. Elias said that almost every year the Land Registry registers 20,000 sales worth more than 4 million euros, while about 12,000 - 13,000 sales documents are filed every year. He also noted that in 2022, 14,489 mortgages were registered, worth € 3.29 million, in the Land Registry, explaining that "when done correctly, (mortgages) contribute to the development of the economy".

According to the most recent data available to the Land Registry, during the months of January – February 2023, the first in the purchases and sale documents of real estate in Cyprus is by far the Russian buyers, followed by the buyers from the United Kingdom and followed by the buyers from Israel, who prefer mainly seaside cities, but are no longer limited to Larnaca, as before, as Mr Elias said.

He went on to say that in fourth place on the list are buyers from Greece, fifth from Lebanon, sixth from Germany, seventh from Romania, eighth from China, ninth from Ukraine, tenth from Netherlands, eleventh from Bulgaria, twelfth from Poland, thirteenth from Belarus, fourteenth from USA, followed by many other countries. Mr. Elias concluded by saying that these data are important and the Land Registry should give this information to entrepreneurs.

As a significant achievement, he cited the reduction of stranded buyers, pointing out that "the causes that created them should be of concern and there is a need to take measures to avoid similar phenomena in the future". At the same time, he noted that there is a need for stricter urban planning controls for the observance of the conditions in each building.

Underlining the resilience of the real estate sector in Cyprus, despite successive international crises, he said that the country remains an attractive destination for foreign investors, as no property taxes are imposed in Cyprus and noted that "property prices in Cyprus are very attractive, above all for what the country offers".

Finally, he noted that on the part of the Ministry of Interior, in order to improve the operation of the Land Registry, an effort is being made to enhance transparency, an effort to improve e-government, while recognizing the need to reduce the licensing time, as well as the issuance of titles.

Mersina Isidorou, General Manager of the Pancyprian Association of Land Development and Construction Entrepreneurs, referred in particular to institutional changes that are considered necessary for the development of the sector. As he said, processes need to be accelerated through digitalization, pointing out that some steps have already been taken, but even more are needed to extend it to large developments.

He also referred to the importance of providing incentives for young couples to acquire a home, as well as to businesses to proceed with green developments. Finally, he referred to the demand for "modernization of anachronistic legislation", saying characteristically that "the state to solve the hands of businesses, to do what they know best".

Elena Kousiou Chatzidimitriou, President of the Cyprus Land Development Agency, said that the Organization has helped 5000 families and individuals, but underlined that she receives many appeals every day, especially from young couples, who need help to secure housing.

Noting that the difficulties are increasing due to limited lending, he said that the KOAG will also start offering facilities for securing rented housing, in addition to the options for purchase. He said that for this purpose, units that are being prepared in the Palouriotissa area will be used, as well as a project with 500 houses in Limassol.

In his own intervention, George Strovolides, Honorary President of the Cyprus Association of Property Owners, referred in particular to the parameters that buyers must take into account before taking the decision to proceed with a purchase, emphasizing that in any case a specific budget must be taken into account.

He also noted that if a property is considered an opportunity, it does not mean that it is an opportunity for all buyers. Finally, he made particular reference to the financing difficulties faced by buyers, due to the rise in loan rates, as well as the change in the conditions for granting loans.

The picture of rising real estate prices in the Greek market was conveyed during his speech by Eleftherios Potamianos, President of the Athens Association of Realtors, pointing out, however, that there are still opportunities for interested buyers, which is confirmed by the increased interest that foreign investors continue to show.

In his speech, he said that although in the urban centres, Athens and Thessaloniki, the prices of mainly residential real estate have risen, they are still at low European levels, while in the periphery the values have not yet risen. He noted that opportunities continue to exist on Greek islands, not the most well-known ones, where requests from foreign buyers, such as Germans, French and Israelites, are many. He concluded that "the Greek market is another market of opportunities that one can invest and gain capital gains", adding that foreign investors have also focused on degraded areas of Athens, in order to gradually raise them.

Source: philenews/KYPE