● Virus property ‘boom’,
PROPERTY prices are tumbling — but sales are set for a “mini-boom” in the wake of the country’s successful fight to overcome the corona virus.
That’s the message this week from builders and estate agents. They say prices have fallen by about 20 per cent, but forecast a bright future for the sector, as buyers seek a safe home in the Mediterranean.
Cyprus Turkish Contractors’ Union head, Cafer Gürcafer told Cyprus Today: “We were expecting demand to fall significantly due to the global Covid-19 pandemic. However, we are now at a point where I expect a mini boom in property sales. We have recorded a serious increase in demand for properties from enquiries to actual sales from UK, Russia, Turkey, China and Middle Eastern countries. I believe this is because people simply want to buy properties that are in countries which are safe from Covid19.
“The Covid-19 outbreak and the slowing down of sales last year because of fewer tourists and the devaluation of the Turkish Lira resulted in a slight depreciation of property prices, although this is dependent on the location and condition of the property itself.
“Many vendors who want a quick sale following the lockdown have however said they are willing to sell properties below market value.”
Cyprus Turkish Estate Agents’ Union head, Hasan Sungur said: “Current trajectories show that we are expecting an explosion of property sales particularly in the Yeniboğaziçi, Alsancak and Esentepe areas, after the virus lockdown has completely ended.
SAFER COUNTRY
“We have been informed by different sources that following the virus outbreak, about 3,000 Turkish Cypriot families in the UK want to invest in properties here and to eventually move here because it is a safer country.”
Mr Sungur also said estate agents were being “inundated” with property enquiries from the UK, Russia and Scandinavian countries.
“During the lockdown, our agents were flooded with email enquiries and sales were even done on virtual reality tours of properties. We are waiting for all the sales to conclude, so we can give a figure on how many sales were achieved.”
Mark Unwin, of Unwins estate agents in Karaoğlanoğlu, said property sales were “very quiet” but that there has been a “depreciation of property prices between 15 to 20 per cent” on the north coast.
“On May 5, we sold a four-bedroom luxury swimming pool villa in Çatalköy marketed for £140,000, but actually sold for £110,000.
PRICES DOWN
“Currently, a four-bedroom swimming pool villa in Esentepe marketed for £120,000, is on sale for £89,000. Vendors have been willing to come down on prices because of Covid-19 and the devaluation of the Turkish lira, whilst buyers are seeking to buy property in safe Covid-19 free destinations. The weak TL has made North Cyprus very attractive, which has caused an increase in property demand when compared to last year,” he said.
Kate Özikiz, from Ian Smith estate agents in Girne, said: “Sales have been quieter and the sector has taken a hit because a majority of our buyers are tourists. However, we have been inundated with daily enquiries from the UK — Brits and Turkish Cypriots there.
“Prices of properties had come down prior to Covid-19 because of the lack of tourists last year, and the virus has not helped. I am, however, optimistic, because sales have begun rapidly after the lifting of the lockdown — we have made numerous sales to British expats and Europeans, as well as buyers from Dubai and Abu Dhabi.”
Mrs Özikiz confirmed a sharp decrease in property price, stating: “The average asking price of a three-bedroom swimming pool luxury villa in the region of Karşıyaka, Girne to Çatalköy — will cost between £120,000 to £200,000,” she said.
“Renting of properties has not been affected. A three-bedroom apartment with pool will cost between £500 to a £1,000 per month. Buyers are knowledgable of the fact that North Cyprus has not had any Covid-19 outbreak for two months and our sales and enquiries are increasing daily,” she said whilst expressing her optimism that “things are picking up.”
‘COVID-19 FREE’
Louis Bloom, property advisor from Beyler and Co estate agents and property consultants based in Çatalköy, said they had made their sixth sale in a month following the lockdown: “Buyers want to buy property in a country that is free from Covid-19, in a beautiful climate, a low crime rate and a cheap country to live in. North Cyprus is the only country to have successfully beaten the virus and has all of these attributes. One has to take one’s hat off to the government and the people.
“There has been a drop in prices from vendors, but this is due to many reasons and not just the lockdown. It is a buyers’ market in North Cyprus and a time to invest.”
He said they were making sales from the UK, Scandinavian, Turkish Cypriot locals and Turkey. Giving an example of a property sale, he said they recently sold a three-bedroom villa with swimming pool in Ozanköy for £170,000. The property was originally marketed for £220,000, and was sold by British expats to an Azerbaijani buyer.
In another recent sale, a two-bedroom apartment in Çatalköy went for £55,000, down from £70,000, and this week a brand new luxury three-bedroom penthouse in central Girne was sold for £160,000 — down from an asking price of £220,000.
“We have been receiving dozens of daily calls from buyers asking for advice, with questions such as: ‘Is it time to sell?’ ‘Is it time to buy?’ ‘Should we wait for the pandemic to pass?’ — particular enquiries are from Russia, Scandinavian British and Turkish Cypriots from the UK and North Cyprus.We are back on track!
“We thought we would have zero sales and completely lost 2020, but everything is going opposite. The virus has actually helped the TRNC and provided us a fabulous tool to market properties because we have had zero cases of the virus for more than two months.”
Mr Bloom said it “all depends on the company, location and condition of the property” as to “how much a vendor is willing to come down on price. But the climate at present has shown a real willingness for asking prices to be significantly decreased”.