It is well known that Cyprus property prices are going down and are now at anything between 20% (prime) to 40% less than the pre recession stated (end 2008). Also the problems with titles, bank releases and the more recent proposed measures by the tax authorities, are there, placing further restrictions. It is notable however, that notwithstanding this, there are some, be it few, sellers and buyers who are prepared to take the risks involved in a sale for a discount - A recent sale at Pafos for €400.000 asking price, ended with a deal of €235.000. No title deeds, license problems etc etc. This and other particular buyers find such discounts attractive enough to proceed. This sale done through our firm with due warning to the buyer, with the latter being very happy with this acquisition, since it refers to a 3 bedroom (180 sq.mts.) villa with a pool and in a plot of 600 sq.mts. = sales price €1.305/sq.m. - definitely below cost.
Having said that, we are now having enquiries from Chinese investment funds either for profit with a subsequent sale and or own development, using their own architects to reflect the Chinese likes and locations. Serious Cos with billions (not that they will spend their billions here) but even if 1% of their funds are invested in Cyprus it is welcomed at least. The visa acquisition is primarily their attraction as is also their worry for China's future over the next 3-4 years. Getting money out of far eastern countries (not related to the above but for individuals) is a major problem for individual buyers (see Laos, Vietnam etc). Cash in bags is a solution for them (several proposals), but, then how is this cleaned in Cyprus - No way, through proper channels.
Yet similarly we note that notwithstanding the side-negative effects for Cyprus from the Ukrainian situation and Russian new measures regarding offshore Cos is another consideration. Bank of Cyprus shares based on reports, jumped from the initial.10 cent to.25 cents/share based on recent reports abroad mainly from hedge funds and others.
The side effects also on the Bank of Cyprus major shareholders (Russians and others) is a consideration which could affect the Bank. Everything is so flue at this point of time (Cyprus in particular but E.U. in general) are considerations to be taken in hand. Russian money have mostly left the island and ended in Denmark, Luxemburg and even Germany. So how will these economies suffer if deposits of billions are withdrawn and how will these banks end up with? The Cyprus weather and the hospitality of the people as well as the very low crime rate (be it on the increase) with relation to other E.U. countries are major positive considerations. Foreign schools are abandant, new schools for foreign residents are being planned mainly in Limassol, whereas a young Russian tennis player set up a tennis school ended up with an unpredicted demand over a couple of months after the set up. So dear readers we must have some sort of an attraction from each of our competitors, notwithstanding our problems. A nursery school is shortly to be set up (1.000 sq.mts. mind you) by a foreign investor, as is another for a fish farm. A Libyan client of ours told us "why should I seek a visa-second home in European countries since my wife and daughters have headscarves and they are ขายบ้าน mocked by local people? Our family stayed here (in Cyprus) for 6 months and we have had not a single negative comment - Far from it, people here have a different attitude and look upon us as people to "woo" in your own way of living. Not a single comment on our race and religion. Try this in France he ended".
All these and others provide some sort of "hope" for our economy and if we do not carry on with our small politics and stupid measures that the Government and various authorities propose from time to time scaring newcomers mainly on financial matters, we should be on our way for a recovery earlier than expected (now 2015/2016).
Coming back to risk takers we must take our hat off to the Cybarco group for doing the Oval office/apartment building in Limassol at this point of time. Well done Cybarco group since we need such efforts to boost our confidence. At least some serious local business Cos look upon the economy with a positive outlook be it a risky job.
We noted also other developers announcing now projects some of which we know do not have the financial ability to do them. It reminds us of the numerous 20 floor buildings block announced just after the change of planning regulations but not a single one has happened after 2 years.
In ending and without having anything against the Spanish people, we remind you of our visit at Barcelona (700.000 residents and 2 mil. tourists p.a.) yet very few (even if they know the English language) could not entertain our English speaking approach - Try this here - English being an international spoken/written business and everyday language one (foreigner) looks upon Cyprus as much as possible at home. Let's keep our fingers crossed hoping that our pluses are more than our minuses - the E.U. unbelievable behavior regarding Ukraine/Crimea in addition - "With us or against us said" by the ex U.S. president George Bush is simple enough for the strong countries but then how about the small ones??
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