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.