25/02/2004 09:08
Cyprus real estate agents and developers said on Wednesday that the forecasts for the drop in the value of properties in case of a Cyprus settlement on the basis of the Annan plan are premature and groundless. The revised Annan plan provides for the return of a number of refugees and the offer of compensations for the possessions with the issue of bonds. According to a Greek newspaper report, the sharp increase in the offer will lead to a drop in the value of property of up to 22%.
“The period of return is so extended – almost 6 years – that the increased demand will cover the increased offer”, Chairman of the Developers’ Association, Lakis Tofarides told StockWatch, stressing that the largest part of the existing demand for properties (£500mln) stems from overseas and this is expected to continue after solution. The demand might also be boosted by the G/C and the T/C emigrants that will return to the island. “Larnaca and Limassol will be the only exceptions, however, they will not be affected much”, Mr. Tofarides concluded.
Similarly, Chairman of the Real Estate Agents Association, Solomon Kourouklides rejected the forecasts for a drop in the property market, emphasizing that the increased security from the possible solution of the Cyprus issue will boost demand both in economy and the property market. At a StockWatch article, Mr. Kourouklides said that the estimates are ‘arbitrary and groundless’, since the third revised Annan plan has significant obscurities. According to Mr. Kourouklides, the issue of bonds of £8 - £10 billion and the interest payment are considerable parameters to estimate the impacts on the property market.
“The period of return is so extended – almost 6 years – that the increased demand will cover the increased offer”, Chairman of the Developers’ Association, Lakis Tofarides told StockWatch, stressing that the largest part of the existing demand for properties (£500mln) stems from overseas and this is expected to continue after solution. The demand might also be boosted by the G/C and the T/C emigrants that will return to the island. “Larnaca and Limassol will be the only exceptions, however, they will not be affected much”, Mr. Tofarides concluded.
Similarly, Chairman of the Real Estate Agents Association, Solomon Kourouklides rejected the forecasts for a drop in the property market, emphasizing that the increased security from the possible solution of the Cyprus issue will boost demand both in economy and the property market. At a StockWatch article, Mr. Kourouklides said that the estimates are ‘arbitrary and groundless’, since the third revised Annan plan has significant obscurities. According to Mr. Kourouklides, the issue of bonds of £8 - £10 billion and the interest payment are considerable parameters to estimate the impacts on the property market.
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