Cyprus Property News

Grapevine Magazine on Cancellation Fees

“There was shock amongst developers when, for the first time, Paphos District Court ordered a property company to reimburse a British couple monies they were obliged to pay when they sold a house without Title Deeds. The homeowners were never issued Title Deeds and when they decided to sell on their property, had to pay the developer thousands of Euros to be released from a contract to give them the right to make the re-sale. The ruling could set a precedent for other similar cases.”

Royal Institution of Chartered Surveyors on Cyprus House Prices

“Only Cyprus and Iceland saw house prices outstrip the previous year’s performance, according to the Royal Institution of Chartered Surveyors report, which called the end of the property goldrush.”

“The finger of blame has been pointed at the worldwide credit crunch in existence from summer onwards,” says Prof Ball.

“However, the most important factor was probably the more prosaic one of rising interest rates. Interest rate responses by monetary authorities and capital markets responses to concerns about escalating general price inflation brought the housing boom to an end.

CYPRUS Property Action Group (CPAG) on Immovable Property Tax (IPT)

“However, what is beyond doubt is that developers charge buyers many more times what they are individually liable for, by using their own illegal formula based on the value of the individual client properties. This illegal practice has sadly become the norm amongst developers catering for foreign buyers”.

Stockwatch  - Construction boom slows down

According to Eurostat data released on Wednesday, construction output in Cyprus slowed down, boosting estimates that the island’s economy will grow slower in 2008. Specifically, construction output in the fourth quarter of 2007 grew by 3% compared to 9% in the third quarter of 2007, 7.5% in the second quarter of 2007 and 4.2% in the first quarter. The growth rate of the construction sector, which is 8.5% of the Cypriot GDP, is smaller than that of economy, which stood at 4.3% in the fourth quarter of 2007.

Eurostat’s figures confirm forecasts that the sector of constructions, which contributed heavily to the fast GDP growth in the past five years, will slow down. Besides, the Finance Ministry expects that GDP growth will decline to 4.6% in 2008, 4.2% in 2009 and 3.3% in 2010. However, the current figures show that slowdown might be larger and steeper than the Ministry’s forecasts.

The construction slowdown is connected with the deterioration of the conditions in the property market, market experts support. “The Central Bank’s move to cut the lending ceiling for the purchase of a home has contributed to the negative climate”, they said.

The anticipated slowdown in constructions – especially in Paphos – is more than obvious in the latest CYSTAT data on building permits. The area of the licensed projects in Paphos recorded a drop of 10.1% in 2007.

The sudden slowdown in constructions will spark fresh talks for the state’s development expenditure, which will be revaluated according to Finance Minister, Charilaos Stavrakis.

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The Black Art of Buying Property in Cyprus™ ®
The Cyprus Informer™ ® ©
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