1 / 12

Talk by George Strovolides Hilton Hotel Nicosia , 7 October 2011

Talk by George Strovolides Hilton Hotel Nicosia , 7 October 2011. THE PROPERTY MARKET IN CYPRUS – FACTS & FICTION. TOPICS. The property market in Cyprus in the light of the local and world economic crisis Data on government revenues and number of sales Latest developments The future

hayfa-brewer
Download Presentation

Talk by George Strovolides Hilton Hotel Nicosia , 7 October 2011

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Talk by George Strovolides Hilton Hotel Nicosia, 7 October 2011 THE PROPERTY MARKET IN CYPRUS – FACTS & FICTION

  2. TOPICS • The property market in Cyprus in the light of the local and world economic crisis • Data on government revenues and number of sales • Latest developments • The future • Question time

  3. THE PROPERTY MARKET & THE CRISIS • The property market was at the epicentre of the current crisis. • The sub-prime loan crisis in the US in 2007 was directly related to the property market. • The correction was inevitable after the worldwide property boom which followed the stock exchange crash of 2000. • Real estate properties are less volatile than shares but not a safe haven like gold.

  4. THE CYPRUS REALITY • It was unrealistic to expect Cyprus to remain unaffected (de-coupled) from the crisis. • In 2008 both the U.K. and Russia were affected by the crisiswith their currencies loosing a lot vis-à-vis the Euro. • The market for holiday houses/flats came to be over dependent on these two markets. • The fall in property prices was not uniform (Nicosiavs. costal towns, flatsvs. houses).

  5. DATA – Government revenues from real estate (from owners – excl. VAT) Source: Ministry of Finance – Amounts in millions of Euros *2011 Jan-Aug.

  6. DATA – voluntary sales in no and value (2006 – 2011) Source: Lands Registry Dept.Value of sales: in thousands of Euros *2011 Jan-Sept.

  7. LATEST DEVELOPMENTS • The town planning “amnesty”. • The new town plans. • The need for tax reform. • Bill before Parliament for reduction of transfer fees.

  8. DEVELOPMENTS – “Amnesty’’ • An attempt to solve the problem of 100.000 or so pending title deeds. • KSIA’s role was vital. • Recent legislation passed by Parliament. • Deadline for provisional declaration 7 October 2011, to be extended by six months. • “Irregularities” legalized by paying a fee. • Could be a significant boost to government revenues.

  9. DEVELOPMENTS – New town plans • Various town plans revised in 2011. • Public presentations/discussions are held. • Four months from time of publication allowed to lodge objection.

  10. DEVELOPMENTS – the need for tax reform • Current system is overly complicated with large number of taxes/levies. • Cyprus is among the most heavily taxed countries in Europe in property taxation. • KSIA’s proposal is for a single tax/levy on acquisition, another on holding and a third on disposal of property. • Both tax base and bands need to be updated. • Tax incentives could be useful.

  11. THE FUTURE • The property market in Cyprus and abroad is likely to remain volatile for some time, certainly while the recession lasts. • Future events in Cyprus that could have a significant impact on property prices. • Scarcity and cost of finance. • The political crisis. • The Greek economic crisis. • Natural gas. • The Cyprus problem.

  12. QUESTION TIME • The floor is open!

More Related