Topics This Month

Home Prices Stabilise

Real Estate: Fastest Growing Cypriot Industry

Cyprus tops list of Property Hot Spots

House prices rise sharply in Cyprus

Cypriot property prices remain stable

Cyprus Property Investment

Launch of cyprus property investment fund

Huge Interest in golf Course applications

Golf Course application for athalassa park

Thousands of Property-Buyers Alerted to Cyprus Test Case

U.S. citizens who own property in the North seek financial remedies

Larnaca refinery to be scrapped in favour of storing fuel

There may be more pain than gain in Spanish property

Buying in the north, watch your way

A sunny future for cypriot property

Cyprus is hotter than ever

We do all we can to stop building boom in north

British couple loose Cyprus property case

Beware illegal real estate in North Cyprus

You thought prices are high? just add another 15% V.A.T

Larnaca Airport Expansion

Development of future Larnaca Golf Course could benefit investors!

Port development

19/10/2005

Home prices stabilise

The number of building permits fell again in July compared with the same month of 2004, reaching a total of 614, or a drop of 2.4% on July 2004.
However, demand appears to be buoyant, as the value and area of building permits authorised continues to grow apace, suggesting that in the residential sector developers are concentrating on apartment blocks, rather than individual houses.
The value of building permits rose in July by 20.7% year on year, while the area rose by a similar 21.3%.
In the January-July period, the number of dwelling units was up 27.1% compared with the same period of 2004, while the value was up 15.2% and area up 12.9%. This compares with a rise of just 2.7% in the number of building permits authorised.
Home prices stabilise
Meanwhile, the good news for house-buyers is that residential prices, as measured by the BuySell Home Price Index, recorded only a slight month-on-month rise of 0.1% in September and a slight year-on-year fall of 0.4% in the same month.
The index appears to have been on a slight declining trend since June 2005, despite large cuts in interest rates this year.
However, they are still 1.5% higher than in January. The average price of a home in Cyprus is now CYP 84,490.
Dr Stelios Platis, Director of S. Platis Economic Research and the economist who devised and produces the BuySell Home Price Index, gives a number of reasons for the trend.
First, he is not alarmed by small changes in the index.
“What the index is saying is that prices have been stable in nominal terms for one and a half years, since May 2004,” he told the Financial Mirror.
Moreover, interest rates take time to have an impact on demand.
However, he also notes that there seems to have been a shift in demand away from property.
“As we noted in our latest economic round-up for Cyprus, it seems that people are shifting towards consumption rather than real estate investment, but home prices are still stable.”

Fiona Mullen (www.financialmirror.com)

Real Estate fastest growing Cypriot industry

13th December 2005
New figures have once again indicated that Cyprus is becoming one of Europe's most attractive countries for property investment.

The latest quarterly figures published by the Financial Mirror reflect on a particularly strong 2005 for the Cypriot economy which has been boosted by investment in property and a burgeoning construction industry.

In what is an increasingly vigorous economy, figures for gross domestic product show that there was a growth rate of 3.8 per cent in the third quarter of 2005 when compared with the corresponding results from last year.

This reflects a growth rate of 0.9 per cent on the previous quarter and experts have predicted that it may reach the 'magical four per cent' by the end of the year following a figure of 3.8 per cent in 2004.

Property investment has been a key contributory factor in the success of Cyprus' economy, with the growth of the construction industry, the hotel and restaurant sector, financial services and the transportation industry all linked to the amount of investment in real estate.

The Statistical Service has corroborated this with the announcement that building permits by area increased by 11.5 per cent year-on-year in the third quarter. Compounding this, there was a 12.4 per cent increase in financial intermediation and a 6.9 per cent increase in tourists visiting the country.

The biggest growth industries, however, were finance and real estate and the new figures provide property investors with encouraging news on the future of buy-to-let and other commercial investment projects in Cyprus.

Real estate saw an increase of 1.9 per cent on the previous quarter, which comes after a particularly strong 2.2 per cent rise in the second quarter. When coupled with construction which grew by 1.4 per cent in the second and third quarters, it appears that Cyprus is providing a genuine alternative to more traditional property markets such as France or Spain.

The strength of the Cypriot economy is substantiated by employment statistics announced last week. In November 2005, there were 1,122 fewer unemployed people than there were in the previous year and this has been largely attributed to the escalating leisure industry in the country.

Tourism in Cyprus has continued to gain popularity this year and in October the Passenger Survey recorded a 3.9 per cent increase in revenue against the figures from 2004. This outperformed the average growth rate by 1.5 per cent, reflecting the rising global status of the island.

Cyprus tops list of property hotspots

20th December 2005
As property investors look ahead to the start of a new year and begin to form their investment plans for 2006, Cyprus has been tipped to become one of the world's most attractive property markets.

It was reported last week that the Cypriot economy is in the midst of substantial growth with property investment a key contributory factor in its success. Stuart Law, managing director of Assetz, has corroborated these suggestions by predicting an extremely healthy future for the market based on a number of key economic conditions.

"Southern Cyprus is set to become the overseas investment hotspot of 2006, with deposit levels falling to just 15 per cent in many areas for higher income clients and with Swiss Franc mortgages now available with rates of just 3.25 per cent, making borrowing even more affordable," said Mr Law.

The Passenger Survey recently recorded a 3.9 per cent increase in revenue from tourism in Cyprus against the figures from 2004 and Mr Law has suggested this is set to continue in advance of two significant developments planned for the island in the next few years. It is believed that both will significantly improve the prospects of buy-to-let investment on the island.

"The complete redevelopment of Paphos airport, due for completion in 2008, will bring increased levels of tourism to the country and additional investment opportunities, prompting an increase in house prices," he said.

"Entry to the Euro is beckoning in 2007/8 which will pre-empt further price growth. Rental yields remain at a confident eight - nine per cent with a year round rental market in some parts of the island," added Mr Law.

House prices rise sharply in Cyprus

6th January 2006
The Cypriot economy has shown further signs of rapid growth and the housing market continues to lead the way.

Cypriot property prices remain stable

21st June 2005
New reports indicate that property prices in the Cypriot property market remain stable into the second half of the year, as demand for properties continues high from foreign investors.

Figures show an increase in prices of 2.5 per cent since the year, fuelled by a jump in demand from overseas buyers. Cyprus, in particular the south, has emerged as something of a holiday home hotspot for UK buyers, offering relatively cheap properties in attractive holiday locations, not too far from home. In a recent ranking of the top 20 most desirable second home and property investment destinations Cyprus ranked ninth overall, ahead of a number of traditional favourites in Spain and France.

According to the BuySell Home Price Index, which assesses the movement of prices at which residential properties are sold in Cyprus based on monthly sales, the average house price in Cyprus currently stands at CYP 85,317, or £98,922 in UK pounds. This is substantially lower than the average house price in the UK, which currently stands at over £150,000.

Cyprus has risen significantly in popularity in recent years. House prices have trebled since 2000 and rose by 18 per cent last year alone, strong indication of rising demand, particular for buy-to-let ventures.

Perhaps most importantly, prices in Cyprus remain notably lower than in France and Spain, offering buyers more for their money. Commenting on the appeal of Cyprus to UK investors Managing Director of Assetz International, Stuart Law, states: "Prices are still considerably lower than in France or Spain - a three-bedroom detached villa with a private pool would currently set you back around £250,000 in a quality location, which would probably only stretch to a large two-bedroom apartment in the South of France."

As of 2007 property prices in Cyprus are expected to rise even further once Cyprus joins the Euro, and value increases of as much as 50 per cent have been predicted. Buyers would be advised to focus on Southern Cyprus, following reports of Greek Cypriots returning to land they lost in the north after Cyprus' accession to the European Union last year. To this end Paphos has been highlighted as a particularly attractive location for holiday home bargains, with other up and coming areas including Polis and Larnaca, at the slightly cheaper end of the market.

"Since restrictions on movement and trade in the north were lifted when Cyprus joined the EU last year, many Greek Cypriots have returned to land they lost and are claiming restitution or negotiation with one particular high-profile court case in the papers just last week," explains Mr Law. "For this reason I would not advocate buying in the North until these issues have been resolved."

(ASSETZ PROPERTY NEWS SERVICE)

Cyprus Property Investment

Yes, demand is strong and supply is severely limited in South Eastern Cyprus.
Add to this low tax rates and the recent accession to the EU which will bring large amounts of investment money to develop the golfing and sailing infrastructure - particularly in the south east.
Lastly, Cyprus is culturally British with English widely spoken with English law forming the basis of Cypriot law - all of which adds to its appeal to the target (and expanding) retirement market.

As experience in Spain has shown, it is the retirement market (not holiday market) that buys property and rents apartments. As Brits can now secure 80% loan to value mortgages, this should ensure Cyprus delivers the highest returns on investment of any 'Sun' type market for the next 5 or more years.

Want to find out more about property investment in Cyprus? Here's where we recommend you start off...

• Get the facts: have a look at our Cyprus Market and Forecast Report, a easy-to-use property investment guide and market forecast that you simply must read before venturing into the Cypriot property market. It's FREE to access and download if you're a member of Property Secrets.
• Get current: browse through our latest articles on property investment in Cyprus. This will take you back to the main Cyprus page, which contains all the links you require.
• Now, want to invest in Cyprus and generate wealth... slowly? Put into practice what you've learnt! Here is a taste of the investment opportunities that we have put together for our clients in recent months. Here you can also download detailed investment packs - a good guide for the information you should look for when evaluating any property investment.

Housing costs more expensive,
telecoms cheaper in 2005

Launch of Cyprus Property Investment Fund

With an increasing number of investors looking for low cost entry deals in the overseas market, this fund provides an ideal opportunity to get involved from as little as CYP£ 11,512 (£13,745) with potential returns of between 60% to 80%.

(PRWEB) June 6, 2005 -- Investors Provident, a global property investment company, is pleased to announce the launch of its first consortium investment opportunity overseas. Being specialists in markets like Dubai, Cyprus, Spain, Bulgaria and others, and having successfully launched a number of investment opportunities across the globe, the Investors Provident Fund is the next level up for this young company.

"We have had so many investors ask the question: Are there no low-cost entry deals abroad where we don't necessarily need to put down thousands and thousands of pounds?" says one of the senior partners in the business. With an increasing number of investors looking for low cost entry deals in the overseas market, Investors Provident decided to setup a consortium fund to allow all investor types to take part in the buoyant property market abroad.

The first opportunity available to invest in with Investors Provident is in Larnaca, Southern Cyprus. St. Andrews Court, as the development is known, presents an excellent opportunity to get involved from as little as CYP£ 11,512 (£13,745). This is quite an exclusive opportunity not only because of its low initial deposit, but also its location which is very close to the proposed 4th 18 hole golf course in Cyprus.

Located in Tersefanou, a small village just outside Larnaca, this spectacular golf course is designed and backed by the European Golf Federation. At present, there are only three golf courses in the whole of Cyprus, and all are located in the surrounding area of Pafos. By offering a resort catering for high quality hospitality services to foreign and Cypriot citizens, this new course is aimed at increasing the Cyprus tourism market and to make a positive contribution to the Cypriot economy.

The resort will feature a hotel, club house with multiple restaurants and bars, a state of the art business centre, equestrian facilities, a retail village complex, entertainment area and spa, a number of villas, more than 1,000 apartments and a 6,000m golf course - all lying in a scenic valley with beautiful natural rock formations and grand trees adding maturity to a relatively new course. With the apartments and villas being built over four phases, some of them are situated on the hills around the course and will have magnificent views overlooking the Mediterranean Sea. The resort is designed to be a comprehensive and integrated golf and leisure resort that combines the advantages and privileges of living in Cyprus.

There are currently three major golf courses in Cyprus and with the golf craze sweeping the island, plans are underway for the development of four or five more within the next five years. The present three are situated very much in the same region of Pafos, with the three new 18-hole golf courses ones planned in the districts of Limassol (Pentakomo), Larnaca (Oroklini) and Famagusta (Agia Napa) by the consortia of local authorities and hoteliers.

St. Andrews Court is a development comprising of 8 blocks of 8-10 apartments each. These range from 1 bed with their own gardens to 3 bed penthouses with large verandas. It is located only 1400m from the golf course and 5km to the beach making it an ideal couple and family holiday hotspot. Investors Provident are initially offering one block of 8 apartments for consortium purchase, with further blocks being made available in the near future.

With the investment entry level as low as CYP£ 11,512 (£13,745) and the potential returns of between 60% to 80% within 15-18 months, this gives investors an extreme leveraging opportunity to control assets worth CYP£ 722,000 (£862,068). An exit strategy is being put in place for September 2006 for those wanting to realize their profits to move on to other opportunities.

For those who do not wish to take the consortium route and want to purchase a plot (or plots) individually, there are other apartments available within the same complex as well. St. Andrews Court truly presents an excellent investment opportunity for investors who wish to partake in the buoyant Cypriot property market, but do not wish to go into it alone by investing their life savings. Not only that, but it is becoming increasingly difficult to find opportunities today with such low initial deposit and excellent returns.

For further information, please contact:
Investors Provident Ltd.

Huge interest in golf course applications
By Elias Hazou
(archive article - Wednesday, December 7, 2005) .

BUSINESSMEN’S interest in the golf courses to be built on the island has surpassed even the government’s wildest expectations, press reports said yesterday.

According to Politis, so far more than 30 applications have been received by investors keen to take advantage of the incentives being offered, in what an ambitious long-term project is aimed at boosting the island’s economy.

Earlier in the year, the government announced plans for the construction of 10 golf courses (Cyprus already has four). Yet it is precisely these incentives, described by many as over-generous, that have attracted public scrutiny.

At the time, it was suggested the incentives were geared to benefit developers more than anyone else. Some went as far as to claim that the government was giving developers a licence to print money, as agricultural land they had bought on the cheap from poor farmers would increase in value by 10 to 20 times with the creation of golf courses.

There is also the issue of water shortages, which Cyprus has always suffered from; some believe the revenue generated for the economy from the creation of the golf courses might not justify the huge demands for water that could negatively impact the rational use of scarce water resources. And it has not been clarified whether the water would be subsidized, which would allow developers to make even bigger profits.

Another provision whose soundness has been questioned is that the state is entitled to take over a golf course should the developer fail to take proper care of it. But this bail-out clause would in all likelihood have the opposite to the desired effect: once a developer sold all the villas he can, he would have no incentive to look after a course properly.

Apparently even the Town Planning Bureau has been stunned by the extent of the interest shown from developers. Already, over 30 applications have been received, although according to a departmental officer, a cursory examination of the proposals showed that most of them would be disqualified.

Still, commentators hinted yesterday that the project’s appeal was yet another sign that developers are being offered a golden goose.

At any rate, the proposals will go through a rigorous filtering process: the initial proposals are to be evaluated by the Town Planning Bureau and the Water Board, which will then draw up a short list of candidates. The list will next be handed to a special committee that will conduct an in-depth assessment.

The remaining competitors will then be asked to submit a master plan for the project (they have 18 months to do that). The master plans need to include environmental and traffic studies. Assuming all goes smoothly, it could take up to three years before actual implementation – so the new golf courses are not expected anytime before 2010.

Meanwhile the Financial Times has reported that billionaire George Soros is closing a deal to buy out major tourist complexes in Greece and Cyprus, such as golf and polo courses, marinas and seaside villas. The total value of the alleged purchases is in the area of 70 million euros.

According to the same sources, the buyout will be made by an international private equity fund acting on behalf of a Soros partner.

Golf course application for Athalassa park
By Leo Leonidou
(archive article - Friday, December 16, 2005)

A DUTCH company has expressed an interest in creating a golf course in the capital’s Athalassa Park.

Representatives of the company this week met with lawyers in Cyprus and have apparently submitted an application to the Town Planning Authority of the Interior Ministry.

President of the Cyprus Tourist Organisation (CTO), Photos Photiou, said that the CTO will be “one of the members of the committee which will look into not just their application, but into all applications.”

Further details on the course were not yet available, he said.

According to yesterday’s Phileleftheros newspaper, the course will be located in the part of the park close to the university, new hospital and international conference centre.

Green Party leader, George Perdikes yesterday told the Cyprus Mail that the party was against the creation of further golf courses in Cyprus as they are anti-environmental.

“They use up massive amounts of water and change plantation and the natural environment.”
He added that the park belongs to the people, “so why should a golf course be built on it which will mean that people will lose access to a large area of the park?”

A week ago, press reports said that businessmen’s interest in the golf courses to be built on the island has surpassed even the government’s wildest expectations.

According to Politis, more than 30 applications have so far been received by investors keen to take advantage of the incentives being offered, in what is an ambitious long-term project aimed at boosting the island’s economy.

Earlier this year, the government announced plans for the construction of ten new golf courses, which will add to the four already in existence. Yet it is precisely these incentives, described by many as over-generous, that have attracted public scrutiny.

At the time, it was suggested the incentives were geared to benefit developers more than anyone else. Some went as far as to claim that the government was giving developers a licence to print money, as agricultural land they had bought on the cheap from poor farmers would increase in value 10 to 20 fold with the creation of golf courses.

Interested parties will be asked to submit a master plan for the project (they have 18 months to do that). The master plans need to include environmental and traffic studies.

Assuming all goes smoothly, it could take up to three years before actual implementation – so the new golf courses are not expected any time before 2010.

Larnaca airport expansion , cyprus

Larnaca Airport , situated in the Republic of Cyprus , is undergoing a process of expansion to take account of a significant growth in traffic in recent years. Between 1985 and 2000, the growth rate in passenger movements has been higher than the European Union average. In 1985, 1990, 1995 and 2000 passenger movements were 0.82, 1.39, 1.80 and 2.38 million respectively. Larnaca is the largest airport in Cyprus , and a key destination for holidaymakers going to the popular resort of Ayia Napa, just 46km from the airport's location. The airport has 30 international airlines and 30 charter airlines using it at present, with an average of 800 scheduled flights per month.

RUNWAY EXPANSION

In 1999, work was completed on an extension to the runway, thereby increasing the number of landing slots for a greater variety of aircraft. Prompted by growth in passenger numbers in recent years, however, plans are being completed for the development and expansion of the terminal building.

TERMINAL DEVELOPMENT

Terminal development will encompass the improvement of existing facilities, and should alleviate some of the problems associated with the process of airport expansion. Cyprus Airways awarded SITA a 5 year contract for a Common Use Terminal Equipment (CUTE) system to enable shared check-in and boarding across 65 workstations (48 check-in stations, 9 gates, 4 transfers and 4 arrivals). SITA will provide a complete IT solution, including the software platform, maintenance, the installation of the equipment and initial training. CUTE provides standardized workstation for airports, enabling the airline or its handling agent to access its application in real time at positions throughout the airport. Additional benefits include the Automated Ticket and Boarding (ATB) technology to speed up check-in and gate reconciliation processes, enabling airlines to switch handling agents and/or terminals. This system is expected to speed up processes and increase airport capacity at check-in and departure for travelers while the new airport terminal is under construction.

TERMINAL CONSTRUCTION

The time-scale of the project to construct a new terminal has yet to be announced. On the 26 th March 2001 , the Ministry of Communication and Work announced that the Cypriot government would begin the procedure of shortlisting within the next six weeks. The government is optimistic that the tenders will be awarded at the end of 2001, or the first month of 2002. Any construction operations are likely to start in the winter months, when levels of traffic coming into and out of the airport are at their lowest ebb. Terminal construction at Larnaca should be completed by 2005, although an additional extension to the terminal is expected by 2015. The Department of Civil Aviation envisages the construction of the new airport facilities at Larnaca will make the airport capable of handling 7.5 million passengers. It is hoped this will allow the airport to take full advantage of its geographical position, which makes it ideal for airline connections from Europe and the USA , to and from the Near East , the Middle East and the Far East .

Taken from www.airport-technology.com.

Development of future Larnaca Golf Course could benefit investors!

December 24th, 2003 -- The golf craze sweeping Cyprus continues, with plans underway for the development of three more, 18-hole golf courses in the districts of Limassol (Pentakomo), Larnaca (Oroklini) and Famagusta (Ayia Napa) by consortia of local authorities and hoteliers, according to Photis Photiou (photo), Chairman of the Cyprus Tourism Organization.

In the cases of Oroklini and Ayia Napa, the government has decided to offer public land to the consortia on a long-term lease. The relevant environmental impact studies have already been completed. Two other local investors have also expressed interest to develop golf courses on private land, said Photiou.

DEVELOPMENT OF NEW COURSES
The Council of Ministers has approved a strategy for the development of golf courses based on the recommendations of a study, Photiou told delegates at the conference.

The development of golf courses will undoubtedly contribute towards the enrichment and diversification of the tourist product, the alleviation of the seasonality problem, the attraction of a quality special interest market segment and the upgrading of the image of Cyprus as a quality tourist destination in the international market place.

In addition to the Strategy for Golf Course Development, the Tourism Strategy Plan to 2010 evaluates golf courses as supplementary tourist projects which add value to the tourist product and contribute towards the increase of per capita tourism expenditure and improvement in hotel occupancy rates , which in turn will improve their financial viability. 

FUTURE PROSPECTS
In light of the attractive investment climate that Cyprus has to offer, as well as the potential benefits resulting from the island's accession to the EU, potential investors are undoubtedly presented with a window of opportunity not to be missed, said Photiou.

Considering that golf development on the island is at its embryonic stage, future potential investors could reap the benefits that will result when Cyprus completes its golf infrastructure and thus becomes a golfing destination.

There is a defined future for golf in Cyprus , said Photiou. A definite plus is the all year sunshine of the island, which means that golfers who find they cannot play in their own countries in winter, when their own courses are closed by ice and snow, can come to Cyprus . Their season ends around October, just when the golfing high season in Cyprus is getting under way.

The CTO participates in all major travel markets and golf fairs ( Germany , Switzerland , Sweden , Norway , and Britain ) and organizes familiarization visits to the island for golf journalists and tour operators.

Port development

In 2003, the policy of the Cyprus Ports Authority (CPA) was again aiming at providing port services which would enable to meet the requirements of world trade liberalization and to accommodate the regional traffic, which will increase as a result of Cyprus ' accession to the EU.

Efforts have also been pursued to increase cruise traffic in the port of Larnaca : aim is to turn it into a specialized passenger/cruise port. The project will be assigned to the private sector through international tenders. In 2003, three proposals for the development of the port were submitted by international firms, which are currently being examined.

Taken from the European Sea Ports Organisation 2003 annual report.

Thousands of Property-Buyers Alerted to Cyprus Test Case
By Rachel Williams, PA (Scotsman)

A British couple are embroiled in a court battle to save their dream holiday home in northern Cyprus after they were sued by the original landowner and ordered to demolish the villa.

David and Linda Orams are appealing against the ruling, which says they must also pay Greek Cypriot refugee Meletis Apostolides damages of about £7,000.


But if they lose the test case and refuse to flatten the home he may try get the November judgment enforced in England, which could result in a claim on their property in Hove, East Sussex.

The couple, whose villa with swimming pool in Lapithos is worth a reported £160,000, believe their case could affect thousands of Britons who have bought properties in the Turkish-controlled north.

Mr and Mrs Orams apparently bought the building as a shell and moved in some 18 months ago, spending half the year in Cyprus.

The country's accession to the EU last year allows its court judgments to be carried out in another member state.

Mrs Orams, 58, insisted in court in Nicosia yesterday that she and her 60-year-old husband had acquired the land legally, the Cyprus Mail reported.

They bought it from a Turkish Cypriot in accordance with the rules and regulations in the north, she told the court.

She explained that she recognised the Turkish Republic of Northern Cyprus and pleaded ignorance to the fact that Mr Apostolides had been forced out and had to abandon his land during the 1974 Turkish invasion, the newspaper said.

Mr Apostolides's lawyer, Constantis Candounas, argued that the Turkish-run state was not recognised by anyone apart from Turkey, and property seized from Greek Cypriot refugees by force could not be legally sold.

Gunes Mentes, for Mrs Orams, presented the title deeds to the property, which she said had been issued by the land office in the north.

The former museum assistant said: "Turkey recognises it, I recognise the Turkish republic of northern Cyprus, and Hassan

the Turkish Cypriot man they bought the property from] had the necessary titles."

Mrs Orams said they bought the property in good faith and everything was done "according to the rules".

Mr Candounas said Mr Apostolides's home had been purchased by him and did not belong to a Turkish Cypriot.

But Mrs Orams countered: "Apostolides claims we acquired the land illegally; I deny this.

"We followed all rules and regulations and laws of TRNC.

"We love Cyprus and we want to live here."

Cyprus has been divided since the Turkish invasion of 1974 by the "Green Line" which separates the "Turkish Republic of Northern Cyprus" from the rest of the island.

The TRNC is not recognised by the British Government.

The Foreign Office warns that this and the possibility of a future political settlement in Cyprus could have "significant practical or financial implications" for those considering buying property in the north.

It "strongly advises" anyone looking to buy in Cyprus to seek independent qualified legal advice.

The case was adjourned until January 21, when the two sides will present their closing arguments.

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PALLONE INTRODUCES BIPARTISAN LEGISLATION ALLOWING CYPRIOT-AMERICANS TO SEEK REMEDIES FOR PROPERTY THEY OWN IN TURKISH OCCUPIED CYPRUS

Washington, D.C. --- U.S. Rep. Frank Pallone, Jr. (D-NJ) introduced bipartisan legislation yesterday that would allow U.S. citizens who own property in the Turkish occupied portion of the Republic of Cyprus to seek financial remedies with either the current inhabitants of their land or the Turkish government.

For the 30 years since Turkey invaded the Republic of Cyprus, U.S. citizens who own real property in the portion of the Republic of Cyprus that is occupied by Turkey have been excluded from the use and enjoyment of that real property. Pallone said it's unconscionable that Turkey, a U.S. ally, who has been, and continues to be, the beneficiary of significant aid and support from this nation, excludes U.S. citizens from property to which they hold lawful titles under the laws of the Republic of Cyprus.

The New Jersey congressman, a member of the Congressional Caucus on Hellenic Issues, said passage of this legislation is critical at a time when reports show sharp increases in the number of unlawful investments of occupied properties and a construction boom on land that continues to be owned by approximately 170,000 Greek Cypriots who were forced to flee their homes and businesses in 1974.

The increases appear to stem from false impressions created by the Annan Plan, rightfully rejected by the Greek Cypriots, that left many thinking unlawful property investments in the occupied area would be safeguarded once a solution to the Cyprus problem was reached. These impressions have led to a huge increase in the number of property applications submitted by foreign nationals to purchase properties in the occupied north, properties that still belong to Greek Cypriots. Over the past four years, property applications have increased by 78 percent from 228 in 2000 to 1,701 during the first nine months of 2004.

"I'm extremely disturbed by the increasing number of illegal property transactions taking place in the Turkish occupied section of Cyprus," Pallone said. "Congress can no longer ignore the fact that Cypriot-Americans have no financial restitution on properties they still own in Cyprus. It's time for Congress to act so these U.S. citizens have the opportunity to seek remedies for being illegally excluded from their real property by Turkey, and so that internationally recognized principles of law on property ownership are reaffirmed."

The American Owned Property In Occupied Cyprus Claims Act, (H.R. 5071) will enable U.S. citizens to seek remedies in the following three different ways:

1) The bill authorizes the President to initiate a claims program under which the claims of U.S. nationals who Turkey has excluded from their property in occupied Cyprus can be judged by the Foreign Claims Settlement Commission (FCSC) and compensated through government-to-government negotiations between the United States and Turkey.

2) The bill empowers the United States district courts to hear causes of action asserted by U.S. nationals who have been excluded from their property in occupied Cyprus against private persons or entities that occupy or use the property of U.S. nationals in occupied Cyprus.

3) The bill empowers the United States district courts to hear causes of action asserted by U.S. nationals who have been excluded from property their in occupied Cyprus against Turkey without having to assert those causes of action under the Foreign Sovereign Immunities Act of 1976 as amended.

Pallone first introduced this legislation last September during the 108th Congress. He worked with Nick Larigakis, Executive Director of the American Hellenic Institute (AHI), and Nick Karambelas, volunteer counsel of AHI, for several months to draft the legislation, and he thanks them for their invaluable contribution.

The New Jersey Congressman is pleased to be joined by U.S. Reps. Michael Bilirakis (R-FL) and Carolyn Maloney (D-NY), the co-chairs of the Congressional Caucus on Hellenic Issues, and U.S. Reps. Ken Calvert (R-CA), Chris Van Hollen (D-MD), Frank LoBiondo (R-NJ), Robert Andrews (D-NJ), Mike Rogers (R-AL), Maurice Hinchey (D-NY), Robert Menendez (D-NJ), James McGovern (D-MA) and Michael McNulty (D-NY) as original sponsors of this legislation.

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Bad news for British expats in the north
By Simon Bahceli (Cyprus Mail)

WHEN A well-known British fugitive says he will hold a seminar in one of Kyrenia's most prestigious hotels in order to help throw light on the ramifications for British 'owners' of Greek Cypriots properties in the north in the light of court proceedings brought by a Greek Cypriot against one of their compatriots, one naturally expects a great deal of public and media interest.

That is what Gary Robb, on the run from British justice since he jumped bail pending drugs charges in the UK several years back, must have been thinking when he organised the seminar as a means of promoting his project to build "the biggest housing development ever undertaken in the TRNC".

His brochure boasts that he will "create a new village within the Amaranta valley in Arapkoy [Klepini]. A village with shops, a post office, restaurants, and most importantly, a pub".

But whether the seminar sent out the message Robb wanted his potential buyers to hear seemed doubtful.

Of the several hundred mostly-British attendees at Friday night's seminar in Kyrenia's plush Colony Hotel, very few will have been reassured by what Turkish Cypriot lawyer Mert Guclu told them - the bottom line being that while foreigners living in homes or on lands abandoned by Greek Cypriots in the wake of the 1974 Turkish invasion may eventually win the right to remain in the properties, it will not be without recourse to lengthy and expensive legal proceedings.

The atmosphere at the seminar was one of apprehension with the Kyrenia Brits keenly aware of the looming legal and political problems souring their plans for idyllic retirement. What few of them are aware of is what exactly will happen to them and their properties.

"It's very hard to get independent legal advice," someone behind me muttered.

And this is perhaps the crux of the matter - that these people have been given so many pieces of conflicting information about where they stand legally, no one knows who to believe anymore.

After being introduced by one of Amaranta Estate's main movers, a young Turkish Cypriot barrister in law, Mert Guclu, began his explanation of how Linda Orams, a British woman recently ordered by a Greek Cypriot court to demolish the home she built on Meletis Apostolides' land in Lapithos and pay compensation and rent, could win the right to keep the property.

Such a case is unprecedented in Cyprus in that the plaintiff will seek, through courts in the UK, to seize Oram's assets in England if she refuses to carry out the court's order in Cyprus.

Mert told those gathered, "in layman's terms", that he believed there were a number of cards in Oram's hand that would eventually lead to her keeping the Lapithos property. In short, these were the belief that Britain would be loath to prosecute a British citizen on behalf of the Cypriot government, that British public policy would supercede the EU law that allowed the transfer of cases from one member state to another, and that Orams could insist she lived more than nine months per year in Cyprus, meaning she would not be eligible for trial in the UK.

"Go and tell everyone you are intending to live in Cyprus for the rest of your lives," Mert told his audience, who looked even more aghast when he said, "Prepare to be buried here!"

Guclu believes also that the UK, being sympathetic to the Turkish Cypriot cause, would refuse to enforce Cypriot law and would insist that such things be left until after a settlement of the Cyprus problem.

He also argued that the summons issued by a Cypriot court could not be delivered "officially" in the north, and therefore could be ignored.

Ultimately, however, Guclu believed the argument that Brits had come to live on the island "in good faith, and not to exclude the rights of Greek Cypriot owners" was enough to convince political leaders and the courts that they had done nothing wrong.

At times, however, the seminar threatened to dissolve into a shouting match, as increasingly angry punters sought answers to their queries.

Donald Crawford, a British lawyer living in the north, stood up to add support to Guclu's arguments. But he was clearly in a different camp from Guclu, who made it clear he was not interested in politics but sought only legal ways out of the quagmire.

Interesting, Crawford was actively censored by the Amaranta man, but not before he declared, "I'd like to see this case in the UK. I'd like to see Constantinis Candounas [Apostolides' Greek Cypriot lawyer] facing a real judge and not a rubber stamp lampoon."

Candounas, who was seated next to me, lost his grin for the first, and perhaps only, time that evening.

Guclu then went on to explain the ramifications of the Annan plan for foreign property owners in the north. After hearing that foreigners could, in many cases, be forced to pay compensation to Greek Cypriot owners, but that "it's OK because you will then be able to sue the Turkish Cypriot state for compensation", one elderly woman was prompted to say, "If I'm going to have to spend my retirement going to court to prove my rights to my property, England is becoming a very attractive proposition."

That the Annan plan is still far from acceptance south of the Green Line did not seem to make the spectre of its implementation any more palatable to the British expats. Guclu, however, who was clearly a fan of the plan, pleaded with them to join him in a letter writing campaign in support of it. Perhaps he is not aware that the Brits of north Cyprus are among the plan's greatest enemies.

As the evening pressed on, the expat irritation intensified, and on several occasions some expressed open hostility towards the young lawyer delivering the bad news. They had, after all, come here to be reassured that the 'TRNC' would defend them to the last. Many now believed they had been duped by the north's authorities, estate agents and lawyers into buying properties they looked set to either lose or spend the rest of their days fighting in the law courts for.

"From what you are saying tonight I'd be surprised if anyone bought a chicken house in the TRNC," an elderly British woman said to bitter applause.

No one left the Colony Hotel in a good mood that night. The young lawyer had been harassed, Robbs and his company had scored an own goal, the Brits were more confused than ever. Only Candunas was grinning from ear to ear.

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Larnaca refinery to be scrapped in favour of storing fuel
(By Alex Mita - Cyprus Mail )

THE FATE of the petroleum refinery in Larnaca was sealed yesterday after the Cabinet shelved plans to have it upgraded to meet with EU standards.

Instead, Commerce and Industry Minister George Lillikas said the government would turn the refinery grounds into a fuel import terminal until a new energy centre at Vassiliko was completed by 2008.

Speaking at a news conference yesterday, Lillikas said the decision to shut down the refinery was the cheapest option.

"After reviewing the results of a study carried out by the Ministry of Commerce and Industry regarding alternative solutions to meet the economic needs on petroleum products by 2010, the Cabinet has decided to cancel the upgrading of the refinery and order the cessation of crude oil refining," he said.

"The refinery will now be modified into an import and storage terminal for fuel until the year 2010, when it will be torn down."

Lillikas said the two other options were either too costly or impractical.

"We had three options," he said.

"The first was to complete plans by the previous government and upgrade the refinery to produce sulphur free fuels, keeping it operational until 2010, only to then have it torn down and sold for scrap.

"The other option was to create a fuel import terminal, and the third option was to agree to an Electricity Authority (EAC) suggestion to create an energy centre near the new power plant at Vassiliko."

But Lillikas said the study showed that the EAC proposal could not fully meet the economy's petroleum needs if the upgrading of the refinery was cancelled.

"For the time being, the EAC can only provide two tanks with a storage capacity of 60,000 metric tons, meaning that the refinery in Larnaca would have to continue operating with or without the upgrade," Lillikas said.

"The EAC proposal, did, however, include the construction of a complete fuel import terminal to cover the needs of the whole island. Their suggestion will be studied within the framework of the construction of the new energy centre at Vassiliko by 2008."

Lillikas said the cost of the turning the refinery into an import terminal was up to $83 million less than it would be to have it upgraded. He added that the operational costs would also be reduced because a smaller number of staff would be employed, while freight costs would be reduced due to the transport of the fuel in larger vessels.

A deal with Larnaca Municipality means the import terminal will have to be removed by 2010, but the cost of environmental restoration of the area was not revealed.

"We have not yet made a study for the restoration of the area," he said.

"But experts will carry out the study before the installations are removed in 2010."

The refinery has also been a thorn in the side of the municipality, angry at its effects on tourism and the environment, and questions had been raised as to whether the municipality would issue planning permission for more storage tanks in the area to meet EU directives calling for a 90-day supply of fuel. The storage capacity in Larnaca is for 65 days.

"We are allowed to have a 65-day fuel supply until 2008," Lillikas said.

"So we are not planning to build more tanks or installations at present. We will also use EAC storage tanks and the energy centre at Vassiliko."

Lillikas slammed comments by his predecessor Nicos Rolandis that the same experts who had carried out the study recommending the refinery upgrade now said it was cheaper not to go ahead.

"I am saddened by Mr Rolandis' comments. It appears that he is trying to put the blame on the current administration. Experts do not make policy, they follow decisions made by their political supervisors and the government. They were never asked to make a comparative study for the cost of upgrading or modifying the refinery into a terminal."

Some 85 people are expected to lose their jobs from when the refinery is shut down. In protest, a group of employees yesterday held a one-hour strike outside the Presidential Palace while the Cabinet was discussing the issue.

Lillikas said there was no chance of the employees being placed in other government positions.

"There are laws and procedures for government employees and unfortunately we cannot offer these people jobs in the government. We can, however, employ them again for the scrapping of the refinery for a short period of time."

Lillikas said the government would have to bear the burden of making people redundant because it was the only solution.

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There may be more pain than gain in Spanish property.
(Telegraph)

Jenny Knight explains why some Britons investing in holiday homes are facing problems when they want to sell

Second home buyers seeking a place in the sun have helped to send prices in Spanish hot spots soaring over the past five years.

Many have made a packet from newly-built flats in popular coastal areas where prices have been rising by between 10 per cent and 20 per cent a year.

But there are now signs that many of the latest batch of investors are about to get their fingers burned. Prices in some high-density areas are falling and second-home buyers are turning increasingly to the cheaper markets in eastern Europe.

Peter Robinson of Homes Overseas, says: "Our best guesstimate is that 65,000 Britons buy abroad each year. Two years ago, 55 per cent of those wanted to buy in Spain but, by the end of last year, this percentage dropped to 43 per cent, as people turned to Turkey, Croatia, Bulgaria, Slovenia and Cyprus."

Spain has more than one type of property market. Prices in inland areas remain fairly stable as they do not tend to attract British, German or Swedish buyers. In other areas, where the Spanish are competing with overseas buyers, prices can be on a par with London but, as yet, markets have been holding up well.

On the Costas, however, where up to 30,000 Brits buy each year - particularly on the Costa del Sol - things are looking grim. The worst hit are people who put down deposits before properties are built with the aim of selling at a profit when construction is complete, typically between 18 months and two years later.

To make the most money, these "off-plan" investors aim to sell before completion, thus avoiding extra fees typically worth 10 per cent of the sale price. "Lots of investors have bought two, three, four, five and even more flats off-plan, aiming to sell before completing," says Barbara Wood of The Property Finders agency.

"But there's an oversupply of two-bed, two-bath apartments and prices are already coming down. Now many people are servicing mortgages they never expected to have to take out.

"The worst-hit are those who remortgaged their UK property to raise the money for the deposit. We know owners who turned down offers last summer that were 20 per cent higher than they're now having to consider. I think most people will get out with their faces clean, but only just.

"People who try to let these properties face the extra expense of furnishings, plus intense competition in the oversupplied Costa del Sol rental market. Where they might previously have expected €1,000 (£690) a week for two two-bed, two-bath flats, a lot remained unlet last year at that price, even in the peak July and August market."

Robinson says: "So many new developments have been built in Spain and sold to off-plan speculators that the profits are no longer there. The system only works so long as there are still people to buy the flats. A lot of speculators are now desperate to offload unwanted properties."

Homes Overseas calculates that about 1 million Britons have properties in Spain, about half of whom live there permanently. According to the most recent statistics, the average amount British buyers are now looking to spend is £160,380, which will buy very little in the most sought-after areas.

"City centres like Barcelona or Parma, Majorca, are top destinations," says Wood. "They're rich in culture and properties are still being renovated. A one-bed flat in Barcelona costs about €250,000 (£178,000). You could get a beautifully refurbished two bedroom flat in a palace for that money in Seville, which is becoming increasingly popular with Spanish second home buyers."

Sadly, many Brits take much less care when buying abroad than at home, it seems. They do less research, swallow blandishments from developers and fail to check rental returns and resale values.

Higher-priced properties in more exclusive neighbourhoods have a better record for maintaining value in slumps, but this market starts at too steep a price for many secondhome hunters from Britain.

John Sherry of Knight Frank's Malaga office says: "My feeling is that investors have had a little bit of wool pulled over their eyes. They buy products off plan at €130,000 to €200,000, and expect the price to have risen by 20 per cent or so before completion in 18 months' time. But the market in that price range is becoming saturated.

"We see a lot of advertisements with private telephone numbers as investors try to sell their flats, while developers are offering the same properties off-plan in the fifth phase of the development. There is now such a huge number of these products around that those in a hurry to sell will have to accept lower prices."

Potential buyers are advised to steer clear of high density areas. Places like Torrevieja, south of Alicante, are particularly tricky, with a large number of houses already available for rent or sale, he says.

"Too many people park their brains at Luton Airport. They arrive and fall in love with the weather, the palm trees, the turquoise water and don't use common sense. A flat with small north-facing windows looking out on the road rather than the sea is likely to be difficult to sell or rent."

"Prices in bits of the Costa del Sol and the Costa Blanca may come down," says Xavier Wiggins of NewSkys.co.uk, a property search site. Developers may start cutting prices in the face of tougher competition, with more people negotiating on price.

"This will leave those who bought at higher prices in difficulties if they want to sell," he says. "It's no longer a good idea to buy off-plan and sell before completion, although there are still bargains if you're cautious and do some homework. People who are still keen to buy off plan should commit only to developments where the builder offers a buy-back guarantee at an increased price.

However, Wiggins adds: "Although prices may suffer in the short-term, my feeling is that Spain is a far safer bet in the long term than the cheaper markets emerging in countries such as Bulgaria and Croatia."

Like Wood, Robinson reckons that most Brits now frantically seeking buyers should still come out even. "Our impression is that Spain is recovering its popularity after a fall last year," he says. "It has the infrastructure and the 'Little Britain' facilities that lots of people look for."

Prices in areas of other Western European countries popular with British homebuyers can also be more dependent on the international property market rather than from the indigenous population. Prices in areas favoured by foreigners can be more volatile because overseas buyers are more likely to take profits and sell than the full-time residents.

In South West France, for instance, buying activity in 2004 fell by 30 per cent. According to Knight Frank, second-home buyers make up about 40 per cent of the market in the Gascony region of France, while buyers from the UK and other northern European countries provide the majority of demand for the Tuscany region of Italy.

"Northern Europeans, predominantly British buyers, dominate the market," says Knight Frank. "Availability has risen over the year as there is a feeling that prices have peaked and that it's therefore a good time to sell. This has depressed prices."

However, Knight Frank insists that UK demand remains solid and, although German demand has fallen off, this has been balanced by increased demand from Italians buying second homes.

"What's new in France is that a lot of investors are now buying two properties rather than one," says Mike Boles, of Savills Private Finance. "But these tend to be for investment purposes rather than speculation, with buyers planning to hang on to the properties for the long-term. The French property market is mature and stable, although not as liquid as in the UK.

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Buying in the North. Watch Your Way

Anyone hunting for a bargain buy in Turkish occupied Cyprus should think about how the new EU accession bill affects them.

Following the Turkish invasion of 1974 and the forced eviction of more than 170,000 Greek Cypriots - now approximately, 220,000 counting children - from their ancestral homes, and the illegal occupation of 36,4% of the Republic of Cyprus's territory, the Turkish occupation regime placed the properties of dispossessed owners at the disposal of its own "authorities," the Turkish military, and ordinary Turkish Cypriots.

After the commencement of Turkey's organised colonisation of occupied Cyprus in late 1974 many such properties were handed over to Turkish mainland settlers. The distribution of properties was also used by the Turkish Cypriot leadership to "buy off" political influence both within and without the Turkish Cypriot community.

In the eyes of the law, approximately 82% of the privately owned land in the occupied areas was owned by Greek Cypriots, while the Turkish Cypriots owned approximately 16.7%. Therefore, it is very important to note that any purchase of property in that part of Cyprus is in jeopardy since it is legally owned by Greek Cypriot refugees who were forced to flee in 1974 in order to save their lives from the invading Turkish forces.

Cypriot authorities state that 'any investment of immovable property in the occupied area is insecure and any investor runs the risk to be brought before justice by the legal owners of that property. Entering into a contract for the purchase of such property in the area under Turkish military occupation that belong to Greek Cyprios, constitutes an illegal act which will expose the purchaser to grave legal and financial consequences.'

Based on such case law Greek Cypriots who own property in the occupied area, remain, at all times, the rightful legal owners of such property and their rights stand unaffected. So if you are thinking of buying a cut-price property in occupied Cyprus, think again. The majority of indigenous Turkish-Cypriots possess passports and other travelling documents of the legitimate and internationally recognised Republic of Cyprus, highlighting the fact that the vast majority of Turkish-Cypriots recognise the Republic of Cyprus as their legitimate Governement.

The two landmark judgments of the European Court of Human Rights in the Loizidou vs. Turkey case, of 18th December 1996, and the Cyprus vs. Turkey case, of 10 May 2001, clearly set out that Greek Cypriot owners still own their property, despite being refugees.

More recently (6 April 2005) the European Court of Human Rights in the case of Greek Cypriot refugee Myra Xenides-Aresti, reaffirmed Turkey's responsibilities for human rights violations in the occupied areas of the Republic of Cyprus. The Court once more reaffirms that the title deeds and the right of Greek Cypriot owners on their properties in occupied Cyprus have not been affected in any way.

Furthermore, they fully expose theillegality f the expropriation of Greek Cypriot properties in the occupied area and the risks to anyone who is tempted to enter into illegal transactions regarding such properties. Purchasers run the risk of being sued at any time by the Greek Cypriot owners, before the Courts of the Republic of Cyprus, as indicated by the case of Mr. Meletios Apostolides, a displaced person from the occupied village of Lapithos.

Mr. Apostolides filed a suit against a British couple, Mr. & Mrs. David and Linda Orams, for building a holiday home on land he was forced to abandon during the 1974 Turkish invasion. The Nicosia District Court on November 9th, 2004, ruled that the Orams should demolish the house, return the property to the rightful owner and pay damages.

As a result of a European Union Regulation by which National Court decisions in any one member state can be executed in the other member states, it is now possible, in case of non compliance with the Cyprus Court decision, for the Orams to be subject to arrest and their property assets in the UK subjected to confiscation.

Those considering buying property in the occupied territory of Cyprus, should bear in mind that the accession of the Republic of Cyprus to the E.U. will offer lawful owners of property in the occupied territory, who continue to be prevented from enjoying their property rights, to seek redress and safeguard those rights through the European legal system.

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A sunny future for Cypriot property
(ASSETZ PROPERTY NEWS SERVICE)

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Cyprus is hotter than ever

Property prices in Cyprus rose by 18% in 2004 and are poised to increase by a further 50% when the country joins the Euro in 2007, claim Assetz.co.uk. Joining the Euro, the property website say, will instigate a drop in mortgage rates from 7.5% to Eurozone rates of 3.5%, helping the surge in property prices.

"Prices are still considerably lower than in France or Spain - a three-bedroom detached villa with a private pool would currently set you back around £250,000 in a quality location, which would probably only stretch to a large two-bedroom apartment in the South of France. Capital growth is expected to continue at a high level for the foreseeable future due to interest from buyers all over Europe and an undersupply of property."

British nationals living in Cyprus account for 1.5% of the total population, with British retirees benefiting from being able to draw their pension without paying UK withholding tax, at a flat rate of 5%.

The most popular destination for tourists and homebuyers is Paphos, say Assetz, which offers stunning sea views, a good infrastructure and a year-round tourist industry. More 'up and coming' areas include Polis and Larnaca, both of which enjoy lower prices than Paphos with high capital growth expected as tourists look further afield, towards traditional Cypriot villages.

Although the process of buying property in Cyprus is fairly straightforward, Stuart Law advises purchasers of a potential pitfall: "There is a 'sixty day rule' for registering land purchases in Cyprus when buying off plan. It is essential for the buyer's lawyer to register the purchase within sixty days in order to preserve the purchaser's legal rights over the land on which the building will sit. If this is not done, the land remains the property of the developer until after the development is completed or beyond."

"I would also warn investors to limit their property investments for the time being to Southern Cyprus," adds Mr Law. "Since restrictions on movement and trade in the north were lifted when Cyprus joined the EU last year, many Greek Cypriots have returned to land they lost and are claiming restitution or negotiation with one particular high-profile court case in the papers just last week. For this reason I would not advocate buying in the North until these issues have been resolved."

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We do all we can to stop building boom in north

THE government said yesterday it would pull out all stops to thwart the exploitation of Greek Cypriot properties in the occupied north, though conceding that the continued division of the island was a considerable impediment.

On a political level, however, the administration was adamant that the ongoing construction boom in the north would have taken place regardless of a settlement. President Papadopoulos maintained yesterday that development of Greek Cypriot properties would probably not have been halted if the UN plan were accepted last year.
The President was being asked to comment on widespread media reports on a frenzy of construction in the occupied territories, in the wake of a case last week when a man was arrested in Paphos on suspicion of acting as an intermediary for the sale of such properties. The suspect was reportedly part of a ring involving Greek Cypriot and foreign businessmen who advertised land plots on the Internet.

"We shall use all the diplomatic and legal levers at our disposal to put an end to this," Papadopoulos said. He was understood to be referring to the possibility of issuing European arrest warrants against EU nationals who were acting as estate agents in the north dealing in property belonging to Greek Cypriots.

And Justice Minister Doros Theodorou described European arrest warrants as a "powerful weapon" in curbing the exploitation of properties. Citing the Orams case and, more recently, the action taken by a Greek Cypriot couple against estate agent Mark Unwin, Theodorou claimed that these efforts were already paying off.

"We have indications that EU nationals have been discouraged from buying Greek Cypriot property in the north, so businessmen from mainland Turkey are now being brought in to do the job," added Theodorou.

He went on to confirm that police were investigating "a number of cases" where Greek Cypriots may have been involved in exploitation of properties, but added that no concrete conclusions could yet be made.

But Interior Minister Andreas Christou was more cautious.

"Admittedly, we lack the means to definitively put an end to this practice. only a solution to the Cyprus problem could achieve that," he remarked.

"Still, we shall use all other means to try and slow down the phenomenon."

Press reports said authorities have in mind as many as 300 cases involving development of Greek Cypriot property in the north. But EUPRO (European Property Association of Northern Cyprus), representing European business interests, doubts whether the action taken by Greek Cypriots can stick in European courts.

They argue that parliament's decision last month to increase to two years the jail time for "illegal possession and use of immovable property" does not distinguish between mere buyers, estate agents, contractors and developers.

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British couple lose Cyprus property case
(Gulf Times Newspaper)

NICOSIA: A British couple living in the breakaway north of divided Cyprus lost an appeal yesterday against a court decision to demolish their retirement home as it was illegally built on Greek Cypriot property.

The decision has wider legal ramifications, with thousands of Britons and other EU nationals having bought land in Turkish-occupied northern Cyprus that originally belonged to Greek Cypriots.

Lawyers for Linda and David Orams had argued that the property was bought in good faith, but this was done without the owner's consent, a Greek Cypriot refugee now living in the Cyprus government-controlled south of the island.

The court upheld a November ruling that the home be demolished and damages be paid to owner Meletis Apostolides, citing rulings by the European Court of Human Rights that Greek Cypriot refugees are "the only true and lawful owners" of their land.

The Orams' Turkish Cypriot lawyer Gunesh Mentesh said the couple would not demolish the house, in an area popular with pensioners, but would appeal to a higher court within 10 days.

Apostolides's lawyer Constantinos Candounas said he would take up the fight through the British legal system if need be.

Cyprus has been divided since 1974 when Turkey invaded and occupied the northern third following a Greek Cypriot coup seeking to unite the island with Greece.

In 1974, some 200,000 Greek Cypriots fled their homes in the north, making property rights a key element in any move to reunify the island.

A divided Cyprus joined the European Union in May last year after the failure of a UN reunification plan.

There are an estimated 4,000 Britons living on a permanent basis in the breakaway Turkish Republic of Northern Cyprus - recognised only by Turkey - and they could now face a barrage of lawsuits by Greek Cypriot owners.

Moreover, the north has witnessed a huge property boom since the Turkish Cypriots received international praise for backing the peace plan which the Greek Cypriots rejected last year.

Lured by stunning scenery and rock-bottom prices, thousands of foreigners have in recent years purchased property in the enclave. - Agencies


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Beware! Illegal real estate in North Cyprus
(Real Estate Gates)

Many people are interested in buying real estate abroad. Cyprus is one of the most popular destinations among Europeans. The island has many advantages about it. Besides, it's now a part of the European Union. However, there's one thing to be worried about; and some of the buyers are not aware of it.

Cyprus is still divided into Northern and Southern territories. The Northern territory has been occupied by Turkish armed forces since 1974. The process of uniting of the two territories seems to never end, though the negotiations on it are going on all the time. Even today the situation does not look any better. Turkey has occupied the EU territory while heads for membership in the European Union.

Let's trace back to real estate! Due to the occupation of 1974, the inhabitants of the Northern part of the island, being originally Greek Cypriotes, had to leave their properties and move to areas controlled by the Republic of Cyprus. After that, the occupants illegally gave the properties to Turkish Cypriotes, as well as immigrants from Turkey itself. The illicit regime implemented on the occupied territories allows and promotes illegitimate buying and selling of real estate that a priory belonged to the 'forced' Greek emigrants, as well as any exploitation of land by the 'new owners'.

The European Court on Human Rights assured that Greek Cypriots have full rights for properties they used to own on the occupied land. They are legal owners of the real estate.

The UN Security Council confessed in their resolutions 541 (1983) and 550 (1984) that the government of Cyprus is the sole legal power on island's entire territory and rejected the Turkish 'pseudo-government', calling it a 'separatist formation'.

The island unification plan by Kofi Annan, UN General Secretary, accepts the right of all the outcast homeowners for property that used to belong to them on the presently occupied area. This gives them rights to take decisions either on reestablishment of ownerships, or receiving full compensations.

Therefore, real estate transactions on Turkish territory of the island can be considered illegal and lead to serious judicial and financial consequences for the buyer.

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You thought prices are high? Just add another 15% for VAT !

After EU accession, Cyprus is no longer just another tourist destination offering sandy beaches and fun. It's becoming the home, work place, business destination, retirement place for more than half a billion people coming from all over Europe.

Furthermore, the government is introducing a 15 % VAT on property purchases in accordance with the "acquis communautaire". All these lead to one and only conclusion - property prices are only going one way and that is up!

Until now, a foreigner was allowed to buy as much property as she/he wants, but was only allowed to transfer one house or one plot of land up to 4,000 sq.m to her / his own name.

But now most restrictions to foreigner buyers are lifted which will lead to an increase in demand by 50-100% and generate an increase in both sale and rental prices. Louis Constantinou, with his more than 30 years experience in the real estate industry, believes that property prices could rise by more than 50 %.

"Until now, there was a rush to buy before EU accession and VAT introduction. But freedom of movement after EU, will further increase demand for real estate. Once restrictions are lifted we will have a new wave of buyers coming here to live, work, invest or retire. That's millions of people coming to a small island with limited land resources!" added Louis.

Ioakim Daniel, another real estate expert, agrees with Louis' assessment. "Prices will only go up. Cyprus is becoming a top destination for retirement, investment, working and living. EU citizens prefer Cyprus to other countries because they find it safer and friendlier. There is a big interest on new properties. The relatively low taxation and low cost of living in Cyprus has also an added appeal for potential buyers, offering a full, but comparatively inexpensive lifestyle. " he added.

All these will for sure increase demand for properties in Cyprus. But what else could push up the prices even more? VAT is definitely another factor. Cyprus has a transitional period until 2008 before imposing VAT on land but buyers of houses, e.t.c will have to pay the VAT. What does this mean?

Prices will increase gradually, at least by 50 % by 2008. But then again we have the possible solution of the Cyprus problem. A solution that could result in certain price stabilization - especially in inland residential properties. But Cyprus, after all, is only a small island with limited land resources and with the current high demand, empty land is vanishing fast, especially in prime locations near or on the sea.

The future remains to be seen but what we know for sure is that now the prices of real estate in Cyprus are going up fast and will continue going up even faster for sometime to come. So if you are considering to buy a property my advice would be to first do your own research and then find a reliable consultant to assist you in minimizing any risks of a price stabilization.

Always, keep in mind that the best investment are properties on or near the beach. Demand for these properties is very high, yielding both high resale values and high rental return.

And don't forget to invite me to chill out together at your pool, because with my current salary I don't think I will be able to afford to buy anything, anymore, let alone something with a s/pool and near the beach. I am waiting for your invitation!

Properties of £1.1bln changed hands in 2004
(Stockwatch)

The activity of the island's property market reached its peak in 2004, the preliminary results of the Land Registry have showed. Despite the drop in transactions by 11.9% compared to 2003, the total value of transactions recorded a sharp increase of 22.5% to £1,131 million. Total sales in 2004 stood at 17,397 against 19,737 in 2003.

Latest data confirm the slowdown in the sector: the total value of transactions in 2003 showed an increase of 37% against 2002, while the total number of sales had increased 18%.

"The latest figures reflect the increase in the property prices by 20% to 30% per annum in the past few years. The purchase and sale documents submitted in 2003 also contributed significantly to the increase in the turnover", Chairman of the Real Estate Agents Association, Solomon Kourouklides said.

Municipalities

Property prices among the municipalities varied. Larnaca suffered the largest increases, with total property sales reaching +117.5%. The number of transactions, however, fell by 1.1%.

In Famagusta Municipality, the turnover and transactions increased by 39% and 11,9% respectively. In Nicosia and Paphos, the turnover recorded an increase of 7.6% and 7.5% respectively and transactions dropped 18.1% and 17.9% respectively. In Limassol, the turnover fell 2.3% and the number of transactions dropped 12.5% compared to 2003. The reduced turnover in the municipality is attributable to the "equalization" trend in the market, Mr. Kourouklides said.

Larnaca

The sharp increase in the total value of sales in the Larnaca property market is attributable to the shifting of interest of the land developers due to the area's lower prices compared to Paphos. "The difference in the property prices between Larnaca and Paphos has restricted the interest of foreigners, who had other properties in Paphos", Real Estate Agents, Akis Iacovou told StockWatch.

We expect stabilization in the property market in 2005. This year's prospects for Larnaca are gloomy, Mr. Kourouklides stated. Similarly, Mr. Iacovou said that the Larnaca market has frozen. "The turnovers in 2005 might not exceed those in 2002 (total £97 million). The Cypriots that wanted to buy properties, have already done that", he added.

Tofarides: Prices will not drop

Chairman of the Land Developers Association, Lakis Tofarides believes that the property market will not follow a downward trend. Stabilization will be encouraged by the amnestied capital. "We should not expect a drop in the property prices. The land and the cost of constructions will not fall", he concluded

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