# Overpriced Cyprus Housing



## Jean Baptiste (Mar 28, 2015)

Hello to all. We are in the process of organising our move out to wonderful Cyprus. We are yet to find a place to rent but are doing the groundwork on that!. However my question is in 2017 we would actually hope to purchase a family home.

Fortunatley we are able to do this from the sale of our property in the UK. However I still am struggling to find anything that we like and can afford!!. I am talking about a villa here not a flat as there are many many reasonable flats to be found in terms of price. However with houses/villas I am still shocked at the prices quite honestly some agents are asking. We are not asking the world here, but it seems that some agents and people on rightmove are living in la la land. They are asking more per square meter than many places in the UK. I recently read an article on the cyprus property news January 2016 that prices could be 40 percent less than the asking price Cyprus real estate market 2016 - Cyprus Property News. Now I am not suggesting that to be true but it just confuses me..

By the way in the comments on that article there are interesting comments on build quality.

Is it because they are hoping for the market to pick up again that they are holding out on prices?. Is it because they are in negative sort of equity if they sold?. Are the prices they are asking old prices?. I am just really confused at the whole thing. Cyprus is on the bottom of the property shelf next to Ukraine I just do not get it???????.

So if any of you can talk some sense into me as either its me having to high expectations or there is truth in it??.


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## debs21 (Mar 13, 2013)

Jean Baptiste said:


> Hello to all. We are in the process of organising our move out to wonderful Cyprus. We are yet to find a place to rent but are doing the groundwork on that!. However my question is in 2017 we would actually hope to purchase a family home.
> 
> Fortunatley we are able to do this from the sale of our property in the UK. However I still am struggling to find anything that we like and can afford!!. I am talking about a villa here not a flat as there are many many reasonable flats to be found in terms of price. However with houses/villas I am still shocked at the prices quite honestly some agents are asking. We are not asking the world here, but it seems that some agents and people on rightmove are living in la la land. They are asking more per square meter than many places in the UK. I recently read an article on the cyprus property news January 2016 that prices could be 40 percent less than the asking price Cyprus real estate market 2016 - Cyprus Property News. Now I am not suggesting that to be true but it just confuses me..
> 
> ...


Hi, My advice would be rent first, say for 6 months to a year. Use that time to settle into Cyprus way of life, have a look at what is around and speak to others. Do not commit to buying until you know 100% this is the place for you and you have chosen the right area for you and yours. :blabla:


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## Veronica (Apr 5, 2008)

Jean Baptiste said:


> However with houses/villas I am still shocked at the prices quite honestly some agents are asking. .


It is not the agents who are asking these prices but the owners who say what they want for their homes.
Often the agents will manage to convince them that if they seriously want to sell they need to set their prices much lower than they hoped for but many owners will not be persuaded.
Unfortunately many owners are taking big losses on their properties because the greedy developer were charging far too much for them in the good times.

I do know of one or two agents though who will add a big chunk to what the owners are asking for themselves on top of their agreed commission. This is a practice which in my opinion needs to be stamped out as it does the Cyprus property market no favours at all.

Of course there is also a big discrepancy in the price of properties in the UK depending on the area so people who have sold homes in London and the home counties find the prices here low while someone coming from other areas will find the price here to be high.

Veronica


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## Jean Baptiste (Mar 28, 2015)

Thanks Veronica for your insight on matters. I do agree with your comments fully. I was totally unaware of unscrupulous agents adding chunks onto property prices!!!. Its such a shame. I feel really sorry for the people that are caught in the trap of the greedy property developers. And I personally would find it really uncomfortable buying a home from somebody who has lost a small fortune on it!!!.. Its really a shame. But having said that I am also not prepared to do the same mistake and buy something that is overpriced. What frightens me more than anything is the unknown picture of reality that only the true expats know about. And not what some marketing developer is trying to sell cash rich Russians or Chinese who need an EU passport. Prices need to get real with the times..

What are your thoughts on self build????. Or is that something that I should not even contemplate???. Due to the different sort of mindset and efficiency levels??.


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## Veronica (Apr 5, 2008)

Jean Baptiste said:


> Thanks Veronica for your insight on matters. I do agree with your comments fully. I was totally unaware of unscrupulous agents adding chunks onto property prices!!!. Its such a shame. I feel really sorry for the people that are caught in the trap of the greedy property developers. And I personally would find it really uncomfortable buying a home from somebody who has lost a small fortune on it!!!.. Its really a shame. But having said that I am also not prepared to do the same mistake and buy something that is overpriced. What frightens me more than anything is the unknown picture of reality that only the true expats know about. And not what some marketing developer is trying to sell cash rich Russians or Chinese who need an EU passport. Prices need to get real with the times..
> 
> What are your thoughts on self build????. Or is that something that I should not even contemplate???. Due to the different sort of mindset and efficiency levels??.


Self build is an option if you find the right builder and have infinite patience. Even the very best small developers here can be frustrating at times and unless you are here to keep an eye on the work things can go wrong as the Cypriot mind tends to go in totally different directions to British minds.
We have worked with one of the best who does an excellent job and is a really nice guy but even he is only as good as his workers. 

I would recommend looking at resales with title deeds.


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## GSmith (Nov 9, 2015)

Come and live here first, rent out your UK property then decide whether you are going to stay. You'll find the price to rent some of these expensive villas is very cheap compared to the asking price, which should give you an idea of the true value of the property. When I moved here I stayed in a hotelk for a week until I found a holiday let for a month, then looked around for a long term rental, rented for 2 years and then bought. It may seem expensive short term doing it that way but in the long run, getting lumbered with something you don't want is much worse.


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## Baywatch (Mar 30, 2014)

Jean Baptiste said:


> Thanks Veronica for your insight on matters. I do agree with your comments fully. I was totally unaware of unscrupulous agents adding chunks onto property prices!!!. Its such a shame. I feel really sorry for the people that are caught in the trap of the greedy property developers. And I personally would find it really uncomfortable buying a home from somebody who has lost a small fortune on it!!!.. Its really a shame. But having said that I am also not prepared to do the same mistake and buy something that is overpriced. What frightens me more than anything is the unknown picture of reality that only the true expats know about. And not what some marketing developer is trying to sell cash rich Russians or Chinese who need an EU passport. Prices need to get real with the times..
> 
> What are your thoughts on self build????. Or is that something that I should not even contemplate???. Due to the different sort of mindset and efficiency levels??.


Our neighbor has self built. It took 88 weeks of hell from ground concrete was pored until they could move in.


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## JonandGaynor (Jun 8, 2009)

Baywatch said:


> Our neighbor has self built. It took 88 weeks of hell from ground concrete was pored until they could move in.


We self built and pleased we did, although in saying that I engaged a small scale developer (Cypriot) to build our house and as he only builds a few houses at a time he could concentrate on the build. We worked with his architect to design our bespoke house and from excavators arriving to level our land to moving in took 56 weeks. No worries and at each stage he would send us photos of progress, we came to Cyprus every 2-3 months and he would take us to his suppliers so we could decide on our own fixtures and fittings. The finished project is superb and the build excellent.


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## Jean Baptiste (Mar 28, 2015)

Thanks G for your advice. Yes it seems quite logical doesnt it and something that you made so clear. Normally a true indication of property prices are reflected in the rent!!. That is very interesting..I will keep that in mind...

When one considers earning per capita and cost of life its significantly cheaper than the UK. Therefore sense and sensibility should suggest that housing sales should be likewise. And it is when it comes to rentals. But it seems that on sales its a different story. I suppose the poor people who have been caught up in the boom and bust need to try and get as back as much as they can. And I do not BLAME THEM!!!. The Cypriot government surely did not assist and stop the ball from getting out of control with greedy developers etc. 

We heard of a villa that cost 430k euros being let out for 800 euros is what a person we know is paying. So that sort of puts that home under the ratio of rental/purchase in the UK at around 200ish euros.... which I would say is the real cost of it in todays market!. Which is half the cost of what they paid of course and are still asking...sad very sad that they have lost this money..


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## Baywatch (Mar 30, 2014)

Jean Baptiste said:


> Thanks G for your advice. Yes it seems quite logical doesnt it and something that you made so clear. Normally a true indication of property prices are reflected in the rent!!. That is very interesting..I will keep that in mind...
> 
> When one considers earning per capita and cost of life its significantly cheaper than the UK. Therefore sense and sensibility should suggest that housing sales should be likewise. And it is when it comes to rentals. But it seems that on sales its a different story. I suppose the poor people who have been caught up in the boom and bust need to try and get as back as much as they can. And I do not BLAME THEM!!!. The Cypriot government surely did not assist and stop the ball from getting out of control with greedy developers etc.
> 
> We heard of a villa that cost 430k euros being let out for 800 euros is what a person we know is paying. So that sort of puts that home under the ratio of rental/purchase in the UK at around 200ish euros.... which I would say is the real cost of it in todays market!. Which is half the cost of what they paid of course and are still asking...sad very sad that they have lost this money..


I don't think you can compare UK and Cyprus. Cyprus is a sunseeker island ad that is reflected in the property prices. A very long tourist season where the 430 k villa can be rented out for 800 per week also show in the sales prices.


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## Cleo Shahateet (Feb 23, 2009)

We have a few clients that can not or will not lower their price against our advice. We do our best to get clients to list at a fair price so that their home will sell but there is only so much we can do. Just do your research and like everyone else said rent first to make sure you really know the areas and if you want to build yourself or buy a resale with deeds. Keep an eye on the market too so when you see a bargain you will know it. Well priced houses and apartments sell very fast.


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## Transcend (Dec 25, 2015)

Is property for rent also overpriced? I've been looking at listings for both sales and rentals. I agree that most properties for sale seem grossly overpriced, but those for rent seem reasonably priced. Under these circumstances, renting becomes even more attractive.


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## Cleo Shahateet (Feb 23, 2009)

Transcend said:


> Is property for rent also overpriced? I've been looking at listings for both sales and rentals. I agree that most properties for sale seem grossly overpriced, but those for rent seem reasonably priced. Under these circumstances, renting becomes even more attractive.



Some are of course, others aren't. It depends on the owner and what he needs to cover his expenses or if he is trying to make a profit. If the owner bought at the top of the market he might need more to cover a mortgage. If it has been owned for years and paid off it might be different as the owner might be more willing to negotiate (which you can do on rentals also). Just shop around so you know what is out there and if you are getting a fair price.


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## Baywatch (Mar 30, 2014)

Transcend said:


> Is property for rent also overpriced? I've been looking at listings for both sales and rentals. I agree that most properties for sale seem grossly overpriced, but those for rent seem reasonably priced. Under these circumstances, renting becomes even more attractive.


Rents can be negotiated for sure. I know friends that has got 20-25% of on long tzerm contracts.


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## Jean Baptiste (Mar 28, 2015)

I had a private pm from a member who really helped me understand a few things. I believe he is spot on and very well informed on the matter..I was certainly unaware of them regarding to the still overpriced housing situation.. I quote...

"Some of the reasons for these discrepancies are: very small market, some purchases driven by emotion, market forces don't always apply (Chinese/Russian buyers are buying for a different reason than to own a house, some sellers hang-out for these buyers but they are few and far between and finally, and probably THE most inportant factor, the banks are hamstrung with regards to repossessions which means that the market cannot find it's true 'bottom' because the pressure to sell does not exist because no-one can yet have their property repossesssed without huge delays and costs to the lender."

I am hoping to rent as I believe the prices are very reasonable and hang onto a moment when I see a fair deal. For now I cannot see them.


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## Veronica (Apr 5, 2008)

Chinese and Russian buyers only affect the prices of properties direct from developers as they have to buy from developers to get their PR. 
Greedy developers are selling very small houses which are so close to each other you can touch the walls of your neighbour. Unfortunately Chinese agents are very Greedy and don't give a hoot about their countrymen. They are happy to take them to the developers who pay them 20% and more commission. 
There are also buyers from other countries such as Lebanon, South Africa and many other non EU countries who are buying in order to get PR and to be guaranteed this they have to buy from developers.
There are a few smaller developers who are more reasonable and don't rip people off but the bigger ones continue to be greedy.

This does not however affect the price of resales with totally different factors coming into play for them. 
Often it is a case of people buying at the top end of the market and being unwilling to take a loss when they sell. Wehave had people tell us that they need X amount in order to buy what they want back in the area used to live in in the UK. They are unwilling to downsize or look at a less expensive area so they hang on and wonder why no one wants to buy their house.


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## Transcend (Dec 25, 2015)

Baywatch said:


> Rents can be negotiated for sure. I know friends that has got 20-25% of on long tzerm contracts.


That's interesting. May I ask what in Cyprus is regarded as a long-term contract? Is it 12 months?


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## Baywatch (Mar 30, 2014)

Transcend said:


> That's interesting. May I ask what in Cyprus is regarded as a long-term contract? Is it 12 months?


12 month yes. It seems a little flexible.


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## Baywatch (Mar 30, 2014)

Veronica said:


> Chinese and Russian buyers only affect the prices of properties direct from developers as they have to buy from developers to get their PR.
> Greedy developers are selling very small houses which are so close to each other you can touch the walls of your neighbour. Unfortunately Chinese agents are very Greedy and don't give a hoot about their countrymen. They are happy to take them to the developers who pay them 20% and more commission.
> There are also buyers from other countries such as Lebanon, South Africa and many other non EU countries who are buying in order to get PR and to be guaranteed this they have to buy from developers.
> There are a few smaller developers who are more reasonable and don't rip people off but the bigger ones continue to be greedy.
> ...


Sorry but what is a PR?


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## Veronica (Apr 5, 2008)

Baywatch said:


> Sorry but what is a PR?


Permanent residence. The Chinese want this so that they have access to other European countries for sending their children to college etc.


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## Baywatch (Mar 30, 2014)

Veronica said:


> Permanent residence. The Chinese want this so that they have access to other European countries for sending their children to college etc.


I suspected that. A lot of rumors going around that is not true. It is not so easy. Many believe that if someone invest minimum 300000 € in property then the PR will be granted. That is not true.

Category F 6(2) - Expedited procedure
An expedited procedure which complements Category F enables the granting of an Immigration Permit to non-EU nationals who invest in Cyprus. These permits are granted on the basis of the following requirements. Applicants must have:
•	Purchased in Cyprus one or two new real estate properties with total purchase cost of at least €300,000 (excluding VAT). At least €200,000 of the purchase cost must be settled
•	A secure and steady annual income transferred on a regular basis from abroad to a bank operating in the country. The income should derive from sources other than employment in Cyprus
•	Funds transferred from abroad and deposited in a Bank operating in Cyprus in a 3-year Fixed Deposit Account
Applications are reviewed by the Civil Registry and Migration Department and the Minister of Interior grants final approval. Examination and processing of applications takes around 2-3 months. The Immigration Permit continues to be valid provided that the holder visits Cyprus at least once every two years.
The application package for the issue of an Immigration Permit under Procedure 6(2), includes (and is not limited to) a number of documents such as title deed or purchase agreement for residential property and receipts of payments, evidence of a secure annual income and bank certificates for deposits etc..


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## expatme (Dec 4, 2013)

A Resideb=ncy is granted to Russian and Chineses by them Purchasing |Immovable Property up to and inclusive of VAT to a minimum value of €300,000-00 and an investment inot a Cyprus bank account of a minimum of €300,000-00.

This was my recolection from Leptos estates.


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## Veronica (Apr 5, 2008)

expatme said:


> A Resideb=ncy is granted to Russian and Chineses by them Purchasing |Immovable Property up to and inclusive of VAT to a minimum value of €300,000-00 and an investment inot a Cyprus bank account of a minimum of €300,000-00.
> 
> This was my recolection from Leptos estates.



Its an investment of 30.000 not 300.000. which must be left in the bank for 5 years. 
Plus an extra 5.000 per additional family member.
Plus it' is AT LEAST 300.000 property purchase not UP TO 300.000.


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## Baywatch (Mar 30, 2014)

Veronica said:


> Its an investment of 30.000 not 300.000. which must be left in the bank for 5 years.
> Plus an extra 5.000 per additional family member.
> Plus it' is AT LEAST 300.000 property purchase not UP TO 300.000.


And it is 300000 € EXCLUSIVE VAT

But the 30000 € should be left 3 years according to the official text I copied above.


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## Veronica (Apr 5, 2008)

Baywatch said:


> And it is 300000 € EXCLUSIVE VAT
> 
> But the 30000 € should be left 3 years according to the official text I copied above.


I hadn't read your text Anders, sorry. I was replying to expatmes post which was inaccurate. 
It used to be 5 years, maybe it has changed. The Cyprus government are forever changing the rules

This scheme actually applies to any non EU citizens not only Chinese and Russians.
The Lebanese are now also buying (in smaller numbers) to have a safe haven to flee to if things get bad in their country as it is only a 30 mins flight from Beirut to Cyprus.


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## expatme (Dec 4, 2013)

Veronica said:


> Its an investment of 30.000 not 300.000. which must be left in the bank for 5 years.
> Plus an extra 5.000 per additional family member.
> Plus it' is AT LEAST 300.000 property purchase not UP TO 300.000.


I did put up to a MINIMUM of €300,000.00

:second:


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## Baywatch (Mar 30, 2014)

Veronica said:


> I hadn't read your text Anders, sorry. I was replying to expatmes post which was inaccurate.
> It used to be 5 years, maybe it has changed. The Cyprus government are forever changing the rules
> 
> This scheme actually applies to any non EU citizens not only Chinese and Russians.
> The Lebanese are now also buying (in smaller numbers) to have a safe haven to flee to if things get bad in their country as it is only a 30 mins flight from Beirut to Cyprus.


This is not unique for Cyprus. Many EU members has the same. The Baltic states only require 100000 €.


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## Veronica (Apr 5, 2008)

Baywatch said:


> This is not unique for Cyprus. Many EU members has the same. The Baltic states only require 100000 €.


Yes I know that the same applies to many EU countries and those who cannot afford to buy in Cyprus will buy where it is cheaper. Talking to our Chinese clients though it seems that most Chinese would prefer Cyprus rather than any of the Baltic countries or even Spain.


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