Cyprus property tax revenues slump 27 pct Jan-Oct

NICOSIA, Nov 20 (Reuters) - Cyprus's tax receipts from real estate transactions fell 27 percent in the first ten months of the year though overall revenues were marginally higher than last year, data released on Thursday showed.

Reflecting a downturn in the property market, capital gains tax fell revenue fell to 278.86 million euros from January to October, from 382.78 million in the first ten months of 2007.

The levy is primarily charged on disposal of real estate, a sector which has been hit by slumping demand from west European markets for holiday homes on the island.

High real estate revenues helped propel state finances to a 3.3 percent surplus in 2007. Authorities expect a surplus of around 1.0 percent in 2008.

Cyprus real estate ‘resilient’, says RICS

The Cyprus real estate market, based on its sturdy economy, has so far resisted the negative consequences of the global credit crunch. According to a recent survey by the Royal Institution of Chartered Surveyors (RICS) on the second quarter of 2008, Cyprus is one of the few countries that displayed strengthening tendencies during this period.
The latest RICS Global Commercial Property market survey confirmed that Cyprus was one of the few economies which showed strengthening trends into the second quarter of this year. Tenant demand expanded at the fastest pace of any country within western Europe as a still robust economy underpinned demand for business space. Furthermore, rental expectations remained positive into Q3.

Cyprus Property bucks the Credit Crunch Trend

There can be no doubt, the credit crunch represents a global economic phenomenon; as reflected in the downturn in the property markets of many European and North American countries. It may seem strange then that Cyprus remains relatively unaffected - with property prices running against the grain of recession.

Cyprus is one of Europe’s most popular holiday locations. Indeed, many visitors love Cyprus so much that they return home only to up-root and relocate there permanently.

It is easy to see why when you consider that it is one of the sunniest locations in Europe. That is not to say that the warm climate is the only appeal, far from it, Cyprus also boasts one of Europe’s lowest crime rates - making it a very attractive, safe place to holiday with the entire family. It is also a very well developed country, with a sound legal system, investment from many multinational companies and regular direct flights from most major European cities.

Cyprus property market: crisis expands

The crisis is exceptionally intense on housing properties, where prices have declined up to 25%. Although in the previous survey crisis focused on tourist areas only, the new survey shows that it affects all housing properties in the market.

Sixteen of the total twenty developers support that prices fall. Only one sees that prices will go up and three expect that they will stabilize. Two developers stressed that conditions in Limassol differ due to the interest on behalf of the Russian businessmen.

All twenty developers and estate agents are actively involved in all cities of free Cyprus. The list includes businesses of all sizes, including the big.

Most of the respondents said that shop and office prices fall too, while others see a decline in plots and farms. At the previous StockWatch survey, none of the respondents expected a drop in this type of properties. Almost all anticipated that plot prices would stabilize.