PrimeStar Estates' subsidiary firm C. Christoforou Surveyors conduct all certified residential, commercial and industrial property valuations for individuals, Cyprus based banks and financial institutions.
PrimeStar Estates property valuations' objective is to work with clients (banks or individuals) to ensure that they have timely, accurate and relevant property valuation in order to properly service their real estate requirements, or of course manage portfolios, make investment decisions and assess risk.
Remember, property valuations in Cyprus are used for two primary reasons: i) for establishing the market selling price when putting it on the market, and ii) compulsory when obtaining a bank loan mortgage. Banks require an accurate property value in order to determine the amount to lend, valued as collateral. It is also essential for insuring a property.
Property valuation needs to be both independent and objective and be undertaken in accordance with Cyprus government standards and compliance regimes. PrimeStar Estates also ensure property valuation performances are in accordance with the Code of Ethics and conduct laid down by The Cyprus Scientific and Technical Chamber ETEK. (Επιστημονικό Τεχνικό Eπιμελητήριο Kύπρου (ΕΤΕΚ)).
Establishing accurate property values
What is your true property market value?
Essentially, your property is worth exactly what a buyer is willing to pay at the time of sale, but in order to increase your chances of potential buyers of course you must have a realistic or true market value; or at least as closest as possible. Property valuations must therefore consider true and current market value of your location in Cyprus, i.e. surroundings, facilities, infrastructure, trends, growth, demand, etc., and then customise according to your particular property. By the same token, banks and financial institutions must also have the most accurate property value for their purposes.
Keep property value realistic: there is absolutely no benefit in providing severely exaggerated or inflated property prices. The market is now well educated and informed on trends and real prices. When selling property, there is of course some negotiations involved, however increasing property value dramatically will only limit potential interests. When looking to buy property, investors and individuals are also very much seeking value-for-money, especially during such challenging economic conditions. Remember, the whole point in advertising – including advertising your property for sale through a real estate agent – is to attract attention. Price is one of, if not the most influential factor. Beyond this, the industry suffers greatly from such misleading and confusing practice, restricting organic activity and demand. Market value, and supply for that matter, should move in line with real demand.
Thus, establish actual market value and know exactly where you stand.
Types of property valuations PrimeStar Estates conduct in Cyprus
PrimeStar Estates provide property valuations for a variety of real estate in Cyprus, including:
- Residential property throughout the regions of Cyprus: Nicosia, Limassol, Larnaca, Pafos, and Famagusta
- City and district commercial buildings and property
- Industrial buildings and office parks
- Holiday home properties throughout Cyprus
- Specialised purpose built developments
- Land development in Cyprus, including agricultural and building plots
Procedure to property valuations
Property valuations in Cyprus are more or less standardised, thus ensuring market valuation reliability and consistency across the board. Where valuations mostly differ is in commercial, industrial and other business type properties, where operational elements must also be factored to property value.
During your initial contact/meeting with PrimeStar Estates we will explain the valuation procedure in a lot more detail. Generally, the entire process takes about 2-5 working days, and can be sent directly upon receipt of payment. In order to conduct the property valuation, the following documents (accurate and true with responsibility and honest resting on the client/property owner) would be required:
- Property location and description
- Property Title Deed
- Property Gadastral plan
- Relevant obligations of the property
- Purpose of the property valuation
Real factors affecting property value
Property (any type of property) is not priced on what your selling expectations. Property is priced at market value, whilst market research allows you to accurately determine the property's market value.
"Location, location, location." Indeed, these are the three most important criteria. Where exactly is the property, Location-country; location-region; location-area. More specifically, the macro and micro environment, in turn considering. But what truly makes a good location? And what of the physical attributes of your property?
In fact, we all have different opinions on what makes an ideal location, and on physical attributes. Some prefer to be by the coast, other closer to the mountains; some prefer in or close to the city centre, others suburbia, or a village further out. Some people prefer a modern design and structure, other something more traditional. In general, those that have greater demand, can bear higher values. Read more about Cyprus' positioning in property and its potential growth, click here
Macro environment drives demand
The macro environment is the foundation of all economic activity and in this case, specific to property value. Generally, if there is high demand for a particular product then its value naturally increases.
Although Cyprus has a relatively small domestic market for property, it is boosted by international demand. Indeed, Cyprus has many great benefits that attract foreign investors, both for business purposes, as well as in the residential property market – holiday/second homes or repatriating/retiring. Some of Cyprus' strongest or most competitive advantages include:
- Member of the European Union, therefore access to EU channels, networks and lifestyles.
- Climatic Mediterranean conditions, year-round sunshine, with warm summers and mild winters, yet also four seasons.
- Extremely low crime rate; ideal for families and elderly.
- Modernising economy and
- Cultural life made-up of a unique mix of European, Mediterranean and Eastern flavours.
- Strong traditions such as in community notions, in food (i.e. organic and home-cook philosophy), and general way of life.
- Diversity and proximity: all places on the island are easily accessible, able to drive from mountain to coast or to each city within a few short hours.
- Very short distance to key source markets, such as in the EU and Europe, Russia and the CIS, as well as the Middle East, making Cyprus an ideal holiday/second home destination, and also for expatriates who like to return home frequently. Air connections from Cyprus to all these markets are extremely good, and now also include a great deal of low cost carriers such as EasyJet and Ryan Air.
No doubt, greater geopolitical stability within an EU framework and domestic concerns will also benefit the entire island. Perhaps the immediate (short-term) will see some devaluing, or maybe even just stability. However long-term is sure to experience great growth – perhaps more than ever before – making Cyprus one of the most attractive places to live, invest and holiday in the world.
Potential for growth in the Cyprus property market
When demand for Cyprus real estate boomed in the 1990s, property prices increased dramatically. These then remained on a steady growth path, in line with excellent economic momentum, until again enjoying acceleration in the lead up to Cyprus' accession into the European Union. Although there was some stagnation in prices during the financial downturn in 2008 and 2009, Cyprus was to so severely impacted such as many other locations in Europe and the Middle East. The market managed to quickly consolidate supply and maintain some level of equilibrium; as opposed to other markets where the was a serious issue of oversupply and a bubble burst.
Cyprus is now embarking on a major new chapter in its economy, having only recently signed an accord demarcating their maritime borders to facilitate a search for mineral deposits in the east Mediterranean where huge natural gas reserves have been discovered. Cyprus has such agreements with Israel, Egypt and Lebanon. Gas reserves are believed to be significant. No doubt, the Cypriot economy will experience significant change from these discoveries, with major economic growth and significant new investments.
The implications of these developments in natural resource are enormous, and will spill over into all other sectors of the country's economy, particularly the main pillars such as real estate, tourism, shipping/maritime and professional/financial services. Real estate in particular is sure to be influenced from a commercial and industrial perspective, which will also then lead to greater residential demand.
Whether you're a buyer or seller, there are certain criteria that should always be factored into a property's value:
Location and community characteristics
Again, each market differs slightly as to what constitutes a good location, depending on societal structure and community values. Additionally, each buyers perspective of a good location is subjective. Generally, there are a handful of ‘standard' benefits to a location. These include:
- Immediate surrounding, i.e. neighbours
- Local amenities and facilities, such as quality schools, medical, parks, fire, police, as well as proximity to shopping, restaurants, recreation
- Libraries and other cultural institutions
- Municipal facilities and services, as well as utilities
- Quiet (such as from road traffic), safe, clean, attractive (aesthetically) neighbourhood
- Overall positive public perception of the community
- Access to public transportation and good road connections, i.e. access to the country's main highway
- Property value trends, with long history of stability and high demand
In addition, town planning and urban development projects always significantly alter the character of the community and of local property values. When conducting a full market feasibility study or valuation for instance, one should also take into consideration future planning. Major influences commonly include growth in property supply, major road infrastructure, and new facilities (i.e. new schools, marina, parks).
Physical attributes of a property
- Actual size (square meters), including balcony
- Age and structural condition; inside and exterior
- Total number of rooms, number of bathrooms and bedrooms
- In-building amenities such as air-conditioning, central heating, alarms and safety
- Storage capacity
- Covered parking
- If apartment, building's overall condition, as well as other facilities (swimming pool, gym, roof-top garden, lobby area, elevator, garbage, recycling, sewage connection)
- Energy efficiency and utility costs, which then take into consideration aspects such as insulation and the property's positioning, i.e. does it face north and receive a nice through-breeze, does it get a good amount of sunlight in the winter but not so much in the summer.
Arrange a property valuation
Register your interest for a property valuation in Cyprus by completing the form below.