House prices up

House prices up 0.4% in Q3, CBC says

ON FEBRUARY 13, 2018 ECONOMYFEATURED

By Stelios Orphanides  Cyprus Business Mail

House prices continued their quarterly recovery for the fifth consecutive quarter in July to September and rose by 0.4 per cent compared with April to June, the Central Bank of Cyprus said.

Compared with the third quarter of 2016, house prices rose in July to September by 1.4 per cent, the central bank said in a statement on its website on Tuesday. The increase was mainly on a 3.7 per cent annual increase of flat prices against a 0.7 per cent rise in house prices.

“Annual increases were recorded in the majority of the main and secondary indicators, and the highest were recorded in the Nicosia and Limassol districts,” the central bank said.

House and flat prices rose in the third quarter by a quarterly 0.3 per cent and 0.5 per cent respectively, the bank supervisor said. House prices recovered for a third consecutive quarter while those for apartments rose for the fifth quarter in a row.

The residential property price index recovered to 74.3, the highest since the second quarter of 2015. Home prices peaked in the third quarter of 2008 and fell to 73.2 in the second quarter of 2016, the lowest point since its introduction 12 years ago.

“The real estate sector’s prospects are favourable,” the central bank said. “Building permits and demand for housing loans are recording an increase while construction activity continues to recover. However, non-performing loans remain a challenge and an important obstacle towards full recovery while the impact of the imposition of value added tax (VAT) on plots is still undetermined”.

“Still, expected growth in the economy in general is believed to support the sector,” it added.

Compared with April to June, house prices rose in the second quarter in all districts except Paphos where they dropped by 0.8 per cent, the bank supervisor said. Home prices rose by 0.4 per cent in Nicosia, 0.6 per cent in Limassol, 1 per cent in Larnaca and 1.1 per cent in Famagusta.

Compared with the third quarter of 2016, home prices rose in July to September by 2.6 per cent in Limassol, 1.3 per cent in Nicosia and 1.6 per cent in Famagusta, the central bank said. They fell in Larnaca and Paphos by 0.7 per cent and 0.8 per cent, respectively.

Sold Out

After the successful launch of Our Konia Sea-View Villas we are proud to say we have sold out, to our happy customers we wish you a lifetime of happiness in your new homes.

MLS271-KONIA-SEA-VIEW-VILLA-PAPHOS-CYPRUS-3BED-4BED (20)

New home building permits

New home building permits up 93 per centbuilding permits

The number of new homes in Cyprus for which building permits have been issued rose by 93.0 per cent in November 2017 compared to November 2016 according to the Cyprus Statistical Service.

THE NUMBER of building permits authorized in Cyprus during November 2017 stood at 474 compared with the 550 authorized during the same month in 2016; a fall of 13.8% according to official figures released by the Cyprus Statistical Service. However, the total value of these permits rose by 172.0% to reach €308.7 million compared to November 2016, while their total area rose by 124.9% to reach 225.7 thousand square meters.
During November 2017, building permits were issued for: Residential buildings – 329 permits Community residencies – 2 permits Non-residential buildings – 91 permits Civil engineering projects – 12 permits Division of plots of land – 33 permits Road construction – 7 permits During the first eleven months of 2017, 5,291 permits were issued compared to 4,900 in the first eleven months of 2016; an increase of 8.0%. The total value of these permits has increased by 52.6% and the total area by 45.1%. Building permits for new homes The 329 residential building permits approved in November 2017 provided for the construction of 658 new homes (dwellings). These comprised 184 single houses (compared with 258 in November 2016) and 474 multiple housing units such as apartments, semis, townhouses and other residential complexes (compared with 83 in November 2016); an overall increase of 93.0% compared with November 2016 when permits were issued for the construction of 341 new homes.

Building Permits Issued for the Construction of New Homes (Number of Dwellings)

Month 2016 (Dwelling Units) 2017 (Dwelling Units) Movement % Change
 January 243 381 138 56.80%
February 312 383 71 22.80%
March 306 412 106 34.60%
 April 201 289 88 43.80%
 May 278 424 146 52.50%
June 287 381 94 32.80%
July 382 537 155 40.60%
August 229 244 15 6.60%
September 289 362 73 25.30%
October 384 543 159 41.40%
November 341 658 317 93.00%
 
 Totals 3,252 4,614 1,362 41.90%
BUILDING PERMITS
Comparison of the most recent period of 2017 with the corresponding period of 2016  
DISTRICT NOVEMBER 2017 JANUARY – NOVEMBER 2017 JANUARY – NOVEMBER 2016
Number Area
(m2)
Units Number Area
(m2)
Units Number Area
(m2)
Units
                   
LEFKOSIA 188 66,433 121 1,892 405,660 1,270 1,912 271,188 860
   Urban 109 45,654 76 1,132 265,032 912 1,113 173,724 530
   Rural 79 20,779 45 760 140,628 358 799 97,464 330
AMMOCHOSTOS 16 16,251 3 231 89,797 266 250 53,227 199
   Rural 16 16,251 3 231 89,797 266 250 53,227 199
LARNAKA 62 12,767 63 814 180,272 601 715 152,266 566
   Urban 32 9,515 54 429 110,262 393 338 91,712 368
   Rural 30 3,252 9 385 70,010 208 377 60,554 198
LEMESOS 161 113,005 383 1,601 505,185 1,766 1,317 316,642 1,170
   Urban 87 96,145 326 845 304,569 1,210 687 216,286 765
   Rural 74 16,860 57 756 200,616 556 630 100,356 405
PAFOS 47 17,246 88 753 173,872 711 706 140,448 457
   Urban 26 14,808 73 346 85,902 421 336 91,187 285
   Rural 21 2,438 15 407 87,970 290 370 49,261 172
TOTAL 474 225,702 658 5,291 1,354,786 4,614 4,900 933,771 3,252
   Urban 254 166,122 529 2,752 765,765 2,936 2,474 572,909 1,948
   Rural 220 59,580 129 2,539 589,021 1,678 2,426 360,862 1,304

 

During the first eleven months of 2017, the number of new homes for which permits have been issued rose by 41.9% to reach 4,614. Of those 4,614 new homes, 1,766 are being built in Limassol, 1,270 in Nicosia, 711 in Paphos, 601 in Larnaca and 266 in Famagusta. According to the Cyprus Statistical Service, building permits constitute a leading indicator of future activity in the construction sector.

 

 

Land and Building

Maispa Developers recognize and agree with the Pan Cyprian Association of Land and Building Developers to be careful and responsibly manage the naturalization plan through investment whichMaispa Developers recognize and agree with the Pan Cyprian Association of Land and Building Developers to be careful and responsibly manage the naturalization plan through investment which has proved to be a Significant contribution in the recovery of the Cypriot economy The Pan Cyprian Association of Land and Building Developers (member of OEB) considers that the contribution of the naturalization plan through investment to the recovery of the Cypriot economy has been catalytic. Therefore, it supports the very careful management and visibility of the project, away from exaggerations and actions that may expose Cyprus and adversely affect our country's promotion as an attractive but primarily credible investment destination. The Association welcomes the stricter regulations for project management approved by the Cabinet and the efforts of the Government and other stakeholders, such as CIPA, to limit aggressive advertising and / or investor misinformation. The plan must be protected because it is an important incentive to attract foreign investment and has contributed to the dynamic reactivation of the construction sector and to the creation of skilled jobs. The construction industry and, more broadly, the country's land development sector contribute substantially to Cypriot GDP, about 17% per annum. has proved to be a Significant contribution in the recovery of the Cypriot economy

The Pan Cyprian Association of Land and Building Developers (member of OEB) considers that the contribution of the naturalization plan through investment to the recovery of the Cypriot economy has been catalytic. Therefore, it supports the very careful management and visibility of the project, away from exaggerations and actions that may expose Cyprus and adversely affect our country’s promotion as an attractive but primarily credible investment destination.

The Association welcomes the stricter regulations for project management approved by the Cabinet and the efforts of the Government and other stakeholders, such as CIPA, to limit aggressive advertising and/or investor misinformation.

The plan must be protected because it is an important incentive to attract foreign investment and has contributed to the dynamic reactivation of the construction sector and to the creation of skilled jobs. The construction industry and, more broadly, the country’s land development sector contribute substantially to Cypriot GDP, about 17% per annum.

Capital of Culture 2017

After the successful Capital of Culture 2017 year. Maispa Developers was presented with an honorary plaque for our support and sponsorship.NEW-LOGO-FINAL-1140x1177

Paphos has now officially handed the title of the European Capital of Culture to the next European Capitals of Culture, Valletta & Leeuwarden (Netherlands)

We wish them well and hope that they can achieve the level of excellence we achieved in Paphos.

Capital of Culture Capital of Culture

 

Cypriot cuisine

Cypriot cuisineCypriot cuisine  is closely related to Greek and Turkish cuisine; it has also been influenced by Byzantine, French, Italian, Catalan, Ottoman and Middle Eastern cuisines.
Frequently used ingredients are fresh vegetables such as zucchini, green peppers, okra, green beans, artichokes, carrots, tomatoes, cucumbers, lettuce and grape leaves, and pulses such as beans (for fasolia), broad beans, peas, black-eyed beans, chick-peas and lentils. Pears, apples, grapes, oranges, Mandarin oranges, nectarines, mespila, blackberries, cherries, strawberries, figs, watermelon, melon, avocado, citrus, lemon, pistachio, almond, chestnut, walnut, hazelnut are some of the commonest of the fruits and nuts.
For Greek Cypriots, there are many fasting days defined by the Orthodox Church, and though not everyone adheres, many do. Pulses are eaten instead, sometimes cooked in tomato sauce (yiahni in Greek) but more usually simply prepared and dressed in olive oil and lemon. On some days, even olive oil is not allowed. These meals often consist of raw onion, raw garlic.
Seafood
The most traditional fish is salt cod, which up until very recently was baked in the outdoor beehive ovens with potatoes and tomatoes in season. Gilt-head bream is popular because it is relatively inexpensive and like sea bass extensively farmed
Many fish restaurants also include in the fish meze a variety of different food which includes fish, for example, fish souffle and fish croquettes.
Vegetables
Salad vegetables are eaten at every meal, sometimes whole. More often, they are prepared chopped, sliced, and dressed with lemon and olive oil. In the summer, the usual salad is of celery leaves and stalks, parsley, coriander leaves, tomatoes, and cucumber
Bamies (okra or ladies’ fingers) are baked in the oven with tomato and oil, and kounoupidhi (cauliflower) is also given this treatment.
Vazania/patlican (aubergines) can be prepared in a variety of ways, including stuffed and in moussaka. They are commonly fried and stewed slowly in oil, where the cooking time brings out the flavour and also allows them to shed the oil they have absorbed
Meat
Preserved pork is very popular, and before refrigeration, it was the main source of red meat available to Cypriots.
Lountza is made from the pork tenderloin. After the initial brining and marinading in wine, it is smoked. Although it can be aged, many prefer younger, milder lountza
Lamb and goat meat are also preserved as samarella, made very salty to prevent the fatty lamb meat from going rancid. Very popular amongst both communities is preserved beef. The whole silversides and briskets are salted and spiced quite powerfully to make pastourma/bastirma.
Many Cypriots consider snails a delicacy. The most popular way to prepare snails is to barbecue them. Another popular variation is to cook them with onions, garlic and tomatoes.
Meze

Cypriot meze
Mezedes is a large selection of dishes with small helpings of varied foods, brought to the table as a progression of tastes and textures. The meal begins with black and green olives, tahini, skordalia (potato and garlic dip), humus, taramosalata (fish roe dip), and tzatziki all served with chunks of fresh bread and a bowl of mixed salad. The meal continues with fish, grilled halloumi cheese, lountza (smoked pork tenderloin), keftedes (minced meatballs), sheftalia (pork rissoles), and loukaniko (pork sausages).
Desserts
Loukoumades (fried doughballs in syrup), loukoum, ravani, tulumba and baklava are well-known local desserts. There are also pasti?, cookies made of ground almonds, that are offered to guests at weddings.
Cypriots also make many traditional sweets that are usually made of turunch/ bergamot, figs, tiny aubergines, fresh fleshy walnuts, watermelon or pumpkins processed akin to jam but without the over-cooking.
Cheeses
Halloumi is a semi-hard white-brined cheese with elastic texture, made in a rectangular shape from a mixture of goat and sheep milk; it may be sliced and eaten fresh, grilled, or fried. Aged halloumi may be grated over pasta dishes. It is the national cheese of Cyprus.
Anari, is a crumbly fresh whey cheese, similar to ricotta, made from goat or sheep milk. Two varieties exist, dry and fresh anari. Dry anari is salted and is much harder than the fresh variety, and is served grated with pasta dishes and Giouvetsi, while fresh anari is eaten in slices with honey or carob syrup.
Drinks
Non-alcoholic
Ayran is a traditional drink made of milk. Its recipe varies from region to region.
Alcoholic
Among Cypriots, traditional brandy and zivania are of the most popular drinks on the island. Zivania, a grape distillate similar to Cretan raki, is another popular spirit.
Evidence of wine production on Cyprus goes back for millennia. Commandaria, the oldest wine in continuous production, is a popular dessert wine.

 

Cyprus property taxes in 2018

Cyprus property taxes in 2018

A number of changes to Cyprus property taxes have been made in recent times, most notably the introduction of VAT on the sale of building land, which I have summarized together with other changes in this article.

Filed Under RECENT changes to property taxes in Cyprus include the imposition of VAT on the sale of undeveloped building land intended for the construction of building(s) and changes to the VAT payable on the acquisition/construction of a property to be used as the purchaser’s primary and permanent residence.

Here is a summary of the property-related taxes that apply as we enter 2018.

Property Taxes payable to Communities and Municipalities This ‘local’ property taxes payable to Communities and Municipalities is calculated on the Land Registry’s assessment of the 2013 value of the property. Property Transfer Fees

(a) No Property Transfer Fees are payable If VAT was paid on the purchase price of the property.

(b) Property Transfer Fees are reduced by 50% if VAT was not paid on the purchase price of the property. However if the Director of the Land Registry considers that the price stated on the contract of sale does not reflect the market value of the property at its date of purchase he may, at his discretion, charge the full Property Transfer Fees based on the Land Registry’s assessment of the market value of the property at its date of sale less the price stated on the contract of sale. (The Department of Lands and Surveys has an on-line Transfer Fees Calculator .)

Capital Gains Tax Capital Gains Tax is payable at 20% on gains resulting from the disposal of a property. The acquisition cost is adjusted for inflation by reference to the cost of living index. (If the property was acquired before 1980, the 1980 value shown on the property’s Title Deed is used as the acquisition cost.) Expenses related to the acquisition and disposal of a property may also be deducted, subject to certain conditions e.g. interest costs on related loans, transfer fees, legal expenses etc. Further allowances are granted for ‘allowable expenses’ such as accepted capital additions and improvements to the property – planning permission where necessary. Note that subject to conditions, immovable property acquired between 16th July 2015 and 31st December 2016 inclusive will be exempt from CGT at its disposal at a future date.

Value Added Tax VAT is charged at the rate of 19% on the first purchase of a property. VAT is also charged at the rate of 19% on the sale of undeveloped building land intended for the construction of building(s) in the course of carrying out a business activity. A reduced VAT rate of 5% is applied on the first 200 sqm. of the acquisition/construction of a property to be used as the purchaser’s primary and permanent residence for a period of ten years. VAT is imposed at the standard rate (19%) on the remaining square metres. VAT is not charged on resale properties or on land in protected zones and farming land.

Stamp Duty Stamp duty is calculated on the value of the purchase agreement and remains unchanged at the rate of: €0 to €5,000 – zero

€5,001 to €170,000 – 0.15%

Greater than €170,000 – 0.2%* *

Capped at a maximum of €20,000

Copyright © Cyprus Property News

Parliament approves VAT on building land

Parliament approves VAT on building land The new bill imposing VAT on building land has been approved by parliament and will come into force on 2nd January 2018 some ten years after the deadline set by the European Union. By: George Psyllides Published: Sunday 5th November 2017 • Filed Under PARLIAMENT on Friday approved a bill imposing 19 per cent VAT on the sale of building land, fulfilling an EU condition some 10 years after the original deadline. The bill passed with the votes of 26 MPs from DISY, DIKO, Solidarity, and the Green Party. Eighteen MPs from AKEL, EDEK, ELAM, and one MP each from DIKO and Solidarity, voted against. The law in question should have been passed by January 1, 2008, and delays prompted the EU Commission to warn Cyprus repeatedly with stiff fines. The new law will come into force on January 2, 2018. House finance committee chairman, DISY leader Averof Neophytou said VAT can be recouped and will only be imposed in cases where the land is sold by a company or businessman registered with the VAT service. Neophytou said the new arrangement could create some short- or medium-term liquidity problems. He reminded parliament that Cyprus has already received a second official warning from the European Commission over the delay in passing the bill. Some MPs voiced concern over the way the law would be applied by the tax commissioner who has the power to decide whether a transaction is commercial or not. Main opposition AKEL warned about the possibility of newly-weds having to pay the tax when buying a plot to build their home. AKEL MP Giorgos Loukaides said there was nothing in the bill ensuring it would not happen. “We have not in any way ensured that new couples will be exempted from paying tax on their first house,” Loukaides said. The land falls under the category of undeveloped building land will be determined by regulations passed by parliament. Protected zones and farming land will be exempted. VAT will be imposed on all sales of building plots taking place as part of economic activity. According to the tax commissioner, any other cases will be examined individually.

Copyright © Cyprus Property News