A couple of months (8 months) in the past we wrote on this paper an encounter that we now have had with a Russian woman purchaser of ours, who has purchased a seashore property at Larnaca in opposition to our recommendation (because of the excessive worth) who has turned on us and stated that “you have no idea the worth for us Russians who reside 10 months of the yr within the chilly, what this villa means …..”. We thought, on the time, “she should be very rich to say this, however what we care to inform her in any other case”. After 8 months from this encounter we now have different experiences so that you can inform, which on the finish of the day, plainly she could also be fairly proper.
– A seashore plot in Limassol was offered 2 months in the past for £700.000 p.d. (20% constructing density) the best ever worth for seashore property in Cyprus (£25.000.000) when the going price was £500.000 p.d. The client acquired in contact with us and we advised him “he should be loopy” to purchase this at this worth. After 2 months he referred to as us again to say, “I’m not as loopy as you suppose, as a result of I’ve now had a suggestion for £1.000.000 p.d.””!!
– Land on the Dhekelia street with the going price of £300.000 p.d. (most) 3 months in the past, was offered final month for £450.000 p.d.!! (£3.600.000).
– Land at Paphos with out entry and with out water provide (purely speculative land) however located inside a growth zone stuffed with historic monuments, on the seashore was offered for £250.000 p.d. – An unbelievable worth.
– Land at Mazotos not on the seashore however near the possible golf course was offered for £250.000 p.d. (final yr £100.000 p.d. most).
– Land at Paralimni space on the seashore is now promoting (with quite a few patrons) for £500.000 p.d. (final yr £350.000 p.d.).
– Land at Alaminos 220 d was offered for £440.000 p.d. (£97.000.000) with a going price final yr £250.000 p.d.
– And so forth and many others
Why you suppose that costs have shot up at such an alarming and naturally at such a excessive price? We expect primarily as a result of the “Russians are shopping for” at an growing quantity when it comes to seashore land/property.
As Russians turn out to be wealthier attributable to oil and fuel worth will increase, so a brand new technology of Russian patrons seem, way more prosperous. The paranoia of the Russians shopping for “us out” is the speak of the city these days.
Seaside housing models when it comes to flats have reached a median £3.000-£6.000 per sq.m. and for homes on the seashore £7.000-£10.000/sq.m. Superb because it appears, a developer referred to as us from the Paralimni space to say that he has 5 villas to promote at £600.000/unit (not a well-liked Russian market). We offered all 5 in 10 days, 4 of which to locals and one to a British chap. This similar undertaking had 15 seashore flats with a median worth of £3.500/sq.m., which was offered inside 15 days to 1 purchaser (??) for £4.500.000!! What is kind of fascinating is the going price for luxurious homes in Limassol. The speed is now at £7.0 mil. for a home of round 800 sq.mts. and in plots of land of round 2.000-3.000 sq.mts. not on the seashore. In order that you don’t suppose that it’s an remoted state of affairs, we had a consumer with a vast finances (so declared) and we felt embarrassed to indicate him homes north of the seashore (round 1 km) which was price not more than £2.0 mil. We did and he purchased one instantly on the asking worth for £3.5 mil.!! The phrase has unfold round and anyone who has a home to promote, be it with a big plot of land and of the stated unit measurement, needs a worth of £7.0 mil.!!
This you may suppose it’s a seashore state of affairs and for particular person instances and why ought to we trouble. However then again, such gross sales have a facet impact on the non seashore land. So in Limassol once more we now have now off the seaside street costs at £400.000 p.d. and on the Protaras space £280.000 p.d. Land on the Tersefanou close to the possible golf course, which was on the market at £150.000 p.d. final yr, is now promoting at £250.000 p.d. (not on the golf course however close to it).
We, since we declare to be specialists in actual property, have misplaced rely of what’s taking place and we not try to predict. What we’re frightened about nonetheless is the brand new strict finance measures launched by the Central Financial institution requiring a 40% participation of the patrons when it comes to a % on the whole gross sales worth or the valuation ready by an unbiased valuer (no matter is the much less). We anticipate that this can have an effect on the speed of demand and costs, however then again the individuals who purchase at this prime finish and at these exorbitant costs, we doubt that they are going to be affected. Just lately an condo constructing at Limassol, not on the seashore, however close to it, be it of high quality in design (not but constructed) sells for £150.000 for one bed room flat and 30% have already been offered! We might have advised you a few consumer of ours who owns a 135 sq.mts. seashore home at Protaras who purchased it for £170.000 4 years in the past and had a neighborhood knocking at his door providing him £700.000 (not even a Russian). He requested for our recommendation and we advised him, do it, if yow will discover one thing on the seashore just like yours (he couldn’t). Think about if this purchaser he was a Russian. We really feel that at instances we reside within the U.Okay. at Maple Arch or at Kolonaki in Athens. Have you ever seen the movie “The Russians are Coming” however we’ll add, with a lot of cash!!