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Company Profile
Antonis Loizou & Associates is a professional firm of Chartered Surveyors
offering valuation, agency and project management services. The firm was set up
in 1980 and is now the largest and most comprehensive professional firm of
Chartered Surveyors in Cyprus and the Eastern Mediterranean. The firm employs 75
members of staff across 8 offices in Cyprus, Romania, and Russia and is one of
the leading real estate advisors for corporations, finance houses, as well as
the local government and individual members of the public.
About us
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Issue 10, January 2010
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The Orams,
Greek public debt and the RICS Cyprus Property Price Index
 If
the first quarter of 2010 is a sign of what lays ahead, then it’s going to be an
interesting and exciting year. Global finance markets appear to have stabilised
and there is even renewed confidence in the property sector, most notably in the
UK housing and commercial markets and even some early positive signs for Eastern
Europe.
The ruling on the Orams case is likely to have an impact on the economy of the
occupied North of Cyprus and on the on-going negotiations for resolution of the
Cyprus problem.
Whether Greece defaults on its government debt or not will have a considerable
impact on the already battered Cyprus economy. Greek companies and banks operate
in Cyprus, as do some of Cyprus’ leading banks in Greece. If Greece suffers,
Cyprus is not far from following suit, especially given its large and cumbersome
public sector which reduces its flexibility.
In the midst of the property market turbulence, the
RICS Cyprus has announced the creation of its property price and rent index.
Whilst its importance is likely to lay on bringing transparency to the opaque
property market and showing trends, its first findings indicate that Cyprus
residential real estate remains considerably overpriced in some areas.
What is of importance is that developers have realised that the market will not
return to where it once was. Property prices are being slashed, marketing
campaigns are being launched, and there is even some new development underway
with asking prices 20-40% lower than those during the peak. Lower prices are
easily justified when considering that land prices rose by 600% during the past
decade, and thus there was a hefty profit from land appreciation alone at the
peak of the boom. In time, individuals will also realise that prices are not
where they think/hope and the market will start correcting it self as they lower
their asking prices as well. |
Cyprus Economy
• The
government announced that in 2009 public deficit rocketed to €1bn, or 6% of GDP.
Moreover, public debt is expected to reach 55,2% of GDP.
• The Government has raised €1bn by issuing 10 year bonds which will carry a
coupon of 4,683%. It aims to raise a total of €2.5bn by issuing long-term bonds
on international markets to finance public needs for 2010.
• Eurostat announced that unemployment in Cyprus reached 6,2% in November, up
from 6,1% in October and 3,7% in November 2008. Construction was hit the
hardest, followed by public administration, trade, hotels and restaurants, real
estate and business activities, manufacturing and newcomers to the labor market.
• With reference to the tourism industry, the first shots of a massive new
holiday price war were fired including up to 20% off some trips for next summer
to get more Britons abroad with Turkey set to become the most popular
destination for British tourists in 2010. The implications of the price war now
being waged in the UK for Cyprus is particularly significant, considering that
the UK supplies more than 50% of tourists to the island and generates just under
half of all foreign exchange revenue from tourism.
• Tourism arrivals for all of 2009 are set to register a 12% decline to 2.11 mln
from 2.4 mln arrivals in 2008. Tourism revenue, however, is set to register a
15% decline in 2009 to around EUR 1.5 bln from EUR 1.79 bln in 2008. In the
event that UK travel giants secure a 20% decline in prices from Cypriot
hoteliers to maintain bookings at 2009 levels, then overall tourism revenue will
record another 15% decline in 2010, forcing more hoteliers to close shop with
disastrous consequences for the Cyprus economy.
Cyprus Property Market
• The Court of
Appeal in England gave its ruling on Orams Vs Apostolides case. In short, the
Court decided in favour of Mr Apostolides, with the Orams ordered to demolish
the villa which they had constructed on his land in Lapithos, in the occupied
North, compensate Mr Apostolides for using unlawfully using his property, and
return the property to its legal owner.
Please see the decision of the Court of Appeal in England.
• The Land Registry announced that registered sales contracts fell by 44% in
2009, despite a noticeable increase in transactions during the last few months.
Total transactions numbered 8.170 compared to 14.667 in 2008, 21.255 in 2007,
and 16.953 and in 2006. Nicosia recorded a decrease of 31% on the year, with
Limassol, Famagusta, Pafos and Larnanca recording -38%, -58%, -52% and -49%
respectively.
• Due to the decrease in the number of buyers from the UK and Russia, local
developers have started revising their marketing strategies. They are now focus
on markets such as Saudi Arabia and Iran, offer property discounts and
“investment packages” (guaranteed income, etc), and take part in more
international exhibitions. However, as long as the land values remain high, it
would be highly difficult to attract foreign investments.
• The first Cyprus property price index was launched by the RICS (Royal
Institution of Chartered Surveyors) Cyprus and the Association of Quantity
Surveyors. The index is based on methodology developed by the University of
Reading, UK, will be produced on a quarterly basis, and covers all types of
properties in the non-occupied part of the island. The
first findings of the index and the methodology can be found here. |
Global Property
Market
• Property
consultancy firm CBRE, announced that more than €25.7bn of property
transactions were completed in the fourth quarter of 2009, an increase of 42%
on the previous quarter and double the level traded in the first two quarters
of the year.
• UK house prices continued to rise, with the price of an average home at
£200,000, higher by 0,6% compared to the same period last year. Whilst this is
considered as a sign for price stabilization, the small number of property
transactions makes any data and conclusion highly questionable.
• Property sales in China jumped 75.5% to $644bn last year, as record new
loans boosted buying. The sales data followed the announcement that December
property prices rose by 7.8%, the fastest pace in 18 months, adding urgency to
government efforts to rein in speculation.
• Property transactions in Greece were 50% lower in 2009 were than 2008, the
Bank of Greece announced. All property types were affected, with new homes
with an area of over 100sqm and holiday homes particularly hard hit.
• European economists believe that this year is going to be disastrous for
Greece’s economy. Despite the reforms of the public and private sectors pushed
forward, public debt is expected to rise from 113% to more than 120% of GDP
and budget deficit to circa 13% of GDP.
• The burden of Europe’s most difficult decision this year is likely to fall
on Angela Merkel, the German Chancellor, who will have to decide whether to
rescue Greece to forestall a crisis throughout the currency club. If Greece
defaults, other countries with high government debts, e.g. Portugal, Spain and
Italy, would face dramatically higher borrowing costs.
• Leading banks active in central and Eastern Europe expect the region to
start to recover from the economic crisis in 2010. UniCredit of Italy plans to
open 100 branches across central and Eastern Europe; Austria’s Raiffeisen
International is launching an internet-based banking service; and Erste, also
of Austria, is opening 70 branches in Romania.
• In November unemployment across Eurozone increased to more than 10%, the
higher level of the last 11 years. The highest unemployment rate was reported
in Latvia (22,3%) and Spain (19,4%), while the lowest in Holland (3,9%) and
Austria (5,5%).
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Cost of Debt |
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GBP LIBOR |
EURIBOR |
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21/12/2009 |
One year ago |
21/11/2009 |
One year ago |
| 3 month |
0.62% |
2.16% |
0.67% |
2.08% |
| 6 month |
0.84% |
2.34% |
0.97% |
2.16% |
| 12 month |
1.26% |
2.48% |
1.23% |
2.26% |
| 2 year |
1.75% |
2.11% |
1.67% |
2.27% |
| 3 year |
2.36% |
2.42% |
2.04% |
2.56% |
| 5 year |
3.13% |
2.98% |
2.60% |
3.01% |
| 10 year |
3.92% |
3.75% |
3.41% |
3.71% |
| 15 year |
4.21% |
4.04% |
3.77% |
4.00% |
| 30 year |
4.09% |
3.69% |
3.80% |
3.68% |
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Articles
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Christmas Time - Always |
Antonis Loizou, FRICS 27/12/2009 |
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 During
these difficult times that we are experiencing and the non positive
prospects of the year 2010, for all of us, who deal in real estate, either
professionals / developers / investors / buyers and others, Christmas
appears to be a welcoming brake. It will give us time to relax, forget for a
short period of time our difficulties and hope for the best in the future.
Wining and dining, getting together with friends and family, is a way out of
this situation, but how long will this last? Nevertheless a short holiday
from this situation will give us all, time to consider our circumstances for
the future. We wish to submit a positive note and with special ...
Read Article |
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The
Greek Economy & the Cyprus Property Market |
Antonis Loizou, FRICS 20/12/2009 |
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 We
have noted that last week the international statistics of the Greek economy,
have been downgraded, causing a lot of concern to the Greek people, as well
as to the eurozone. The Greek economy has dropped from the one fast
developing economies in the eurozone, to the near bottom of the eurozone,
due to the global economic recession and bad management from the recent
local Government(s). It appears that in Greece there are no reliable
statistics and every Government prepares its own to suite voters and public
opinion. However the eurozone members do not trust Greece any more,
notwithstanding the fact that the new
...
Read Article |
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The Progression of Democracy - Titles |
Antonis Loizou, FRICS 12/12/2009 |
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 It
is very interesting to report on the way forward regarding the discussions
that are taking place now on the title deed issue. The Ministry of the
Interior has embarked in an unknown so far procedure in Cyprus, by preparing
4 draft proposals covering all aspects of the procedure (town planning laws,
building laws, Lands Office laws etc) in an effort to invite all sorts of
related associations, business chambers etc to offer their views/suggestions
how to improve the system. A site has been set up and everybody has the
chance to offer electronically (in addition) their views. In addition an
open dialogue is taking place between the political parties, so... Read Article |
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Title Deeds & Mortgages |
Antonis Loizou, FRICS 6/12/2009 |
 The
consultations between the various sectors of the profession (regarding the
problem of non issue of the title deeds), are proceeding, at a satisfactory
rate, both with the numerous associations as well as with the political
parties/Ministry of the Interior. In a recent meeting that took place at the
Ministry on the 26.11.09, numerous ideas were placed on the table, how to
speed up the process further and to his credit, the Minister of the Interior
(Mr Sylikiotis), who was presiding the meeting, adopted a number of the
suggestions made ...
Read Article |
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General Information on Housing |
Antonis Loizou, FRICS 29/11/2009 |
 From
time to time we get specific queries regarding property matters most of
which are answered directly and through the
Q+A column. In this article we will refer to some of the points which
are of a general appeal and which were not addressed before.
Read Article |
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Our News
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Μελέτη: Εξασφαλίσεις Δανείων & Υποθήκες |
5/10/2009 |
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 Σκοπός
της μελέτης είναι η καταγραφή των διαφόρων επιλογών που έχουν
σήμερα οι χρηματοδοτικοί οργανισμοί στην εξασφάλιση των δανείων τους και
στις επικρατούσες μεθόδους εκποίησης της ακίνητης υποθηκευμένης ιδιοκτησίας.
Περισσότερα
Κατεβάστε σε PDF |
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Reuters: Επέκταση στην Κύπρο με Αντώνη Λοΐζου |
12/12/2009 |
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 Το
γραφείο μας έχει διοριστεί αποκλειστικός σύμβουλος ακινήτων στην Κύπρο για
το πολυεθνικό ειδησεογραφικό πρακτορείο
Thomson Reuters. Σε συνεργασία με τον συμβουλευτικό οίκο ακινήτων
Cushman & Wakefield, στο εκ των μεγαλύτερων γραφείων παροχής συμβουλών
για ακίνητα στο τόπο μας έχει ανατεθεί το έργο της μεταστέγασης των
κεντρικών γραφείων της εταιρείας.
Περισσότερα |
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Governmental proposal on the title deed issue |
16/12/2009 |
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 Mr.
Αntonis Loizou participated in an open discussion regarding the Governmental
proposal on the title deed issue. Mr. Loizou who represented the
Cyprus Chamber of Commerce and Industry submitted practical measures on
how to speed up the process.
Read More |
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Σεμινάρια σε Ελεκτές / Λογιστές |
20/12/2009 |
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 Mr.
Το γραφείο μας παρέθεσε σειρά σεμιναρίων στους συνεταίρους των ελεγκτικών γραφείων KPMG, PWC, Deloitte κατά τη διάρκεια του μηνός Νοεμβρίου, 2009. Τα θέματα που συζητήθηκαν υπό μορφή ερωτήσεων / απαντήσεων ήταν κυρίως:
Περισσότερα |
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In the News
Ο κ. Αντώνης Λοΐζου ήταν φιλοξενούμενος του κ. Μαυρίδη στην εκπομπή του
ΡΙΚ-1 "Τηλεοικονομία" στις 18 Δεκεμβρίου 2009 σε μια συζήτηση για την
παρούσα κατάσταση στην Κυπριακή αγορά ακινήτων
Watch Video
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our Facebook page) |
Ο κ. Αντώνης Λοΐζου ήταν φιλοξενούμενος του κ. Μαυρίδη στην εκπομπή του
ΡΙΚ-1 "Τηλεοικονομία".
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