The Yearly Re-Birth of Protaras (Cyprus)

Every year,at the beginning of June,eastern (free) Cyprus in the Famagusta region (more popularly known as Protaras) is re-born. This region must have as much holiday home population as the local villages. Yet 90% of the holiday housing in this area are locked up from 15/9 up to 1/6 every year. This region is the most popular one by the Nicosia town’s people in terms of buying a holiday home (approximately 65% of locals who buy a holiday home are Nicosia based,not only because Nicosia has no sea,but also because it accommodates the vast majority of high income earners,including civil servants etc). The beaches of this region are the best in Cyprus (and we would like to add one of the best in Europe),there is little wind and humidity is very low by comparison to other seaside spots,whereas the now most important item of water cuts,does not exist (at least so far). Whereas the local demand easily understands the seasonality of the region,the foreign buyers not appreciate this necessarily.

For those who want to make a permanent home in this area,will realize that after September,the whole area becomes dead,save,at times,over the weekends. So for those who feel that Protaras will be buzzing of life after the summer season,they get a surprise. For those also who buy to let,they will also be disappointed,due to the very short term of the season. For those of us who happen to visit the region in winter,will find that the quiet environment,the most excellent service in restaurants (unlike the summer) the never ending beach footpaths and the all the year round swimming,are an attraction of value. Hopes to extend this very short seasonality of the region exists however.

The Ayia Napa-Paralimni golf course appears to have solved its problems and it is now in the market seeking equity participation for implementation,whereas the Ayia Napa marina is next in line to be negotiated (announced last week). Still,both,these much needed projects are not expected to have an affect in the local seasonality before 3-5 years from today. Notwithstanding the region’s seasonality,prices are not much lower than in other seaside spots (on average). Beach villas sell at £3.500/sq.m. and beach apartments at £3.000/sq.m. (approximately 50% lower than that of Limassol and similar to that of Larnaca). What is noticeable however is the very large number of low cost apartments,which are mainly developed in the Kapparis area,which were bought mainly by the British market in order to let. These apartments sold at a commission of 15% (thus upgrading the price) mainly through international estate agents (be it illegal as far as Cyprus law is concerned) are standing empty,whereas disappointed investors are keen to sell,but not at the prices that these agents promised. Non beach villas sell now at £2.000-£2.500/sq.m. depending on sea proximity,whereas apartments have a theoretical value of £1.400/sq.m. (not easy to sell). This state of the local market (seasonality,rather high prices etc) have directed the foreign demand towards the area’s inland villages.

Villages such as Sotira,Dherynia,Frenaros and even Xylophagou,are becoming more popular and projects which are developed around these villages are increasing in popularity (the lower prices apart,these projects being within/around the villages,cannot be considered as having a seasonality in terms of “life” as such). What is also worth mentioning,is that a number of foreign buyers (mainly British) buy the old refugee houses,built approximately 30 years ago and set within the refugee housing estates. Two bedroom bungalows of approximately 100 sq.mts.,sell at £70.000,but they need improvement.

This,Dhasaki area,as it is known,has the attraction of being next to the Ayios Nicolaos British base and this is the main draw. British type pubs are appearing everywhere and this development is worth examining by those who are students of the local building industry.

So Protaras is on the move,for being re-born again this summer season in terms of more permanent residents and it is not strange that whereas the local Cypriot population rate is reducing,the total local population with respect to the permanent yearly residents is increasing.

Cyprus Beach Apartments, Make The Dream A Reality

Cyprus property is arguably amongst some of the beautiful in the Mediterranean area and continues to be much sought after by investors as well as those looking to buy a holiday home for themselves. Obviously the nearer to the coast the better but such locations will come at a premium in many areas. This is probably why a Cyprus beach apartment is one of the most desirable property options for many holiday home buyers. Despite rapidly rising prices and the introduction of value added tax there are still some Cyprus beach apartment bargains to be found should you know where to look.

Cyprus beach apartment buyers have traditionally focused their attentions around the main resort areas such as Paphos,Protaras and Limassol with only the more adventurous Cyprus property seekers venturing further afield. All that is however changing because as the price of resort property increases the bigger developers are investing in large scale developments further out. Not just the building of Cyprus beach apartment or villa complexes either but full scale developments including shops bars and restaurants. In fact they are inputting infrastructure where none previously existed to support the developments themselves.

With Cyprus’s modern coastal motorway system linking all the main resorts,buyers of these beach apartments will never be more than a short drive away from all the amenities they need whilst at the same time enjoying the benefit of a rural location. The big news about this trend is price! Properties located in these outlying villages and suburbs can be 40-50% cheaper than a comparable house in a resort area making that Cyprus beach apartment an affordable reality for the buyer on a smaller budget. Just how long this state of affairs will continue is difficult to predict but most will agree that it is only a matter of time before the “ripple” effect catches up and prices in these locations rise too.

So if you are thinking of buying a Cyprus beach apartment or any residential property in Cyprus perhaps now would be a good time to make your move. It is rare if ever that property goes down in value so waiting around for the market to “pop” is not the best option unless you get real lucky. Holiday apartments and villas are becoming big business not just for the developers but also in terms of holiday rents. Holiday makers are changing their habits from the old package tour system to “self build” packages where they arrange the flights and accommodation needs separately including renting Cyprus villas or apartments. This shift in behavior is great news if you just happen to own a Cyprus beach apartment and are looking to rent it out for a few weeks of the year.

How many times have you seen property sell for two or three times what it cost the seller a few years hence and thought,I wish I had brought one myself at the time? The bottom line is that history has taught us that overall property prices and inflation continue to rise year on year. A Cyprus beach apartment that rents for cyp600 a week today could be renting for twice that amount in five or six years time! Even folks who have gone out on a limb and borrowed against their other assets have come out on top at the end of the day. Owning two properties one in the U.K. and a home in the sun is becoming a reality for more and more people who took the chance why they had it. So all the shrewd buyer needs to do is sit back in the sun,watch their investment grow and enjoy many years of carefree holidays in their very own Cyprus beach apartment.