PrimeStar FAQs

Selling and letting property in Cyprus

What is an exclusive listing?

An exclusive listing is based on an agreement/contract with only one agent, otherwise known as property exclusivity or sole-agent. In other words, only one agent is given the right to sell or lease a property for a certain period of time. Usually this contract last for six month (or another pre-defined period), after which the property might become available to other agents.

The main benefit of an exclusive listing is that the agent prioritises this property, providing greater attention to aspects such as marketing, promotions and sales. This then increases the chances of sale or rent via this agent. Exclusive listing arrangements are available with sale/rent of residential, commercial and luxury properties.

The opposite is an open listing, where the property is listed with a variety of agents. In turn, commission is only paid to the successful agent when a buyer/renter has been found. The benefit of this type of listing is that your property is being advertised and promoted across a wider spectrum of potential buyers, however the downside is that you may not receive the same individual and personal attention as you would with an exclusive listing/sole agent.

How long does it normally take to sell my property (close a sale)?

Of course this questions is very much determined by two key factors; the condition of your property, and market demand.

No doubt, when there is an increase in demand property sales close much faster. However, when demand is suppressed, then it takes somewhat longer. There are of course many other factors that can influence length-of-time.

Firstly price. The higher the profit margin you hope to achieve, generally the longer it would take to sell. Buyers always thoroughly research property markets and benchmark similar properties. If your property is priced much higher than similar properties, then you are likely to loose many potential buyers on account of lower value-for-money. As such, always price your property according to its true current market value.

Secondly, and just as importantly, the property's location and condition in relation to marketed price. Try to improve the condition of your property, even if it means a small investment, and lots of extra hard work and time. This will surely increase your chances in selling.

Following an initial consultation and property inspection, PrimeStar Estates will be in a much better position to determine market value and tell you the approximate number of days similar properties to yours have spent on the market before being sold or leased. Remember, the more effort you put into preparing the property properly, the greater your chances of closing a sale.

Can I sell my property by myself?

It is not a legal requirement to use a real estate agent to sell your property. Indeed, you may choose to sell it yourself, but that does not necessarily mean you will save cost, or time, whilst for sure there is extra pressure.

Using an agent certainly increases your chances of selling, and selling at the best price. It is also a much more efficient and legally secure process.

Real estate agents are professionals, with extensive experience and know-how. They have expertise in property marketing, negotiation and selling to do it right; increasing your chances to sell, as they have access to greater distribution channels and of course maximising the end sale value.

Do I pay a commission if I sell the property myself?

Generally in Cyprus no, but it depends on the agreement you signed with the agent. Many sellers list their properties with an agent, but also try to spread the word themselves.

If the agent has property exclusivity, then no other agent can sell it. If they do, then the first agent (with property exclusivity) still receives their commission.

Can I sell my property while it is still being rented?

Yes, you are able to sell your property while it is being leased, but any potential purchaser must be told there is a current lease in place and that the property will not be sold with vacant possession.

The tenant has the right to occupy the residence until the end of the lease term, unless both parties negotiate and agree to terminate the existing agreement.

In some cases, the fact your property has reliable tenants in place may actually be appealing to prospective property investors, who will know they will have immediate return.

Should I be presented during a property inspection?

Usually it is better to not be. The reason for this is to offer the potential buyer/renter full flexibility and freedom to explore and imagine moving in to the property, i.e. mentally moving in. Indeed, it is essential that the prospective buyer/renter feels relaxed and not rushed or pressured.

All too often Cypriot owners like to get involved with the entire process. This is all good and well to be eager, but often such eagerness can cost you a sale. Besides, you employ the services of a real estate agent to take care of this for you. The agent will be able to conduct the property inspection, guide the visitors and of course provide you with feedback, such as negotiations.

If you do decide to be present, try to remain as open and flexible as possible, and consider the above.

What is overcapitalised?

Overcapitalised refers to a situation where you have invested more money on your property than what will be returned after a sale.

Although work you have done, such as interior design and landscaping will surely add value to the property - and increase its chances of being sold - there is no guarantee that the full amount spent on these improvements will be returned in the sale price.

Why should I use PrimeStar Estates to sell my property in Cyprus?

PrimeStar Estates is a professional real estate agency that offers exclusive and personalised service. Listening carefully to the needs of each individual client and then adapting approaches to suit.

The agency has a long history in property development and real estate services in Cyprus, dating back to the 1930s. At the same time, the firm has been re-positioned, balancing local traditions with international modern systems.

Finally, PrimeStar Estates is also well known property valuators, working for well known banks and financial institutions in Cyprus, as well as individuals. This then establishes a unique position for understanding true property market prices.

Cyprus property valuations

Why must I have my Cyprus property valuated?

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 property insurance.

Who must conduct property valuations in Cyprus?

Property valuation in Cyprus must be independent and objective, undertaken in accordance with Cyprus government standards and compliance regimes. Property valuation performances must be in accordance with the Code of Ethics and conduct laid down by the Cyprus Scientific and Technical Chamber ETEK. (Επιστημονικό Τεχνικό Επιμελητήριο Κύπρου (ΕΤΕΚ)).

As such, only certified valuers are entitled to conduct property valuations in Cyprus. PrimeStar Estates is certified to conduct property valuations in Cyprus.

What is considered during the property valuation process?

Property valuations in Cyprus are more or less standardised, thus ensuring market valuation reliability and consistency across the board. Essentially, property value is determined on market value, trends/forecasts and in correlation with property location, type and condition.

Key factors include location characteristics (i.e. surroundings, local facilities, transport, infrastructure) and physical attributes of a property (i.e. actual size, age, structural condition inside and exterior, total number of rooms, number of bathrooms and bedrooms, in-building amenities, storage capacity, parking, energy efficiency, among other). Remember, there is no benefit in providing severely exaggerated or inflated property prices. The market is now well educated and informed on trends and real prices. Accurate property valuations increase your chances of attracting potential buyers.

PrimeStar Estates can explain this process in much more detail during an initial consultation, or read more about the property valuations process, click here

What's normally involved with a property valuation in Cyprus?

Generally, the entire valuations 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 title deed
• Property architectural plans
• Purpose of the property valuation

PrimeStar Estates can explain this process in much more detail during an initial consultation, or read more about the property valuations process, click here

Buying and renting property in Cyprus

What determines buying and rental price of a property in Cyprus?

There are many clear-cut factors that influence the buying/renting price of a property in Cyprus, but like all markets around the world, it is essentially worth exactly what a particular buyer is prepared to pay. With this, market demand and macro economic indicators drive property prices - supply and demand, i.e. when demand is low, property prices also tend to reduced, whilst when demand is high, prices increase. Market prices are then also influenced by trends in supply and demand, including price benchmarking, i.e. what were other similar properties in the area sold or leased at, as well as the outlook.

At the same time, property selling/rental prices must also consider true and current market factors, such as location, i.e. surroundings, local facilities, infrastructure, urban planning, etc., as well as property type and its condition, i.e. physical attributes, size, age, features and facilities.

PrimeStar Estates can provide you with more specific and relevant information and advice regarding property prices and what you can expect to pay after negotiations. Of course you are encouraged to benchmark the area with what other properties are sold at to better understand.

What should I do before buying or renting property in Cyprus?

The best thing you can do before purchasing or leasing property in Cyprus, or any other market for that matter is undertake in-depth research. Firstly, you should know approximately what you are looking for and a fairly accurate price range (establish your budget and ability to access financing if required). Once you have established this, your next task is to understand the market and what properties are available.

Research the wider market and determine which locations you are interested in buying or renting. Write up a SWOT analysis for each location: Strengths, Weaknesses, Opportunities and Threats, so you can clearly see the differences and where is best.

Then look deeper and research available properties within your price range and in the location most interesting to you; via the estate agent's network, newspapers, online and even driving around. Benchmark these properties, in terms of pros and cons, physical attributes and of course price. Make a shortlist and look at enough properties to gain a comprehensive understanding of the marketplace and to work out which are most suitable and which offer best value-for-money. Inspect as many properties as possible and even conduct multiple inspections, whilst taking notes and photos to remind you later. Be absolutely confident in what you are buying/renting. The best way to achieve this is to view many properties. Indeed, benchmarking allows you to understand market reality.

Before buying/renting a particular property, make sure your agent conducts all necessary follow-ups with the property and contract to buy. Also, make sure you conduct a final inspection to ensure that the property is still in the same condition it was when you negotiated the deal.

PrimeStar Estates can assist in the entire process, offering guidance and advice in residential buying or residential renting; commercial buying or commercial renting; and luxury buying or luxury renting.

How does a real estate agent such as PrimeStar Estates help in buying or renting houses and apartments in Cyprus?

Employing a real estate agent with purchasing or leasing property makes the entire process easier and more efficient. It is also completely free of charge. There are four key reasons to using a real estate agent when buying property in Cyprus:

• Real estate agents have a wider network therefore larger pool of property stock to choose from and help establish a shortlist of properties that better meet your specific requirements or preferences. Real estate agents represent hundreds of developers and construction companies in Cyprus, and many more private resellers. This allows prospective buyers to search from thousands of property listings all over Cyprus.
• Real estate agents thoroughly understand true property market prices (and trends) in Cyprus. This then puts them in an advantageous position to help you negotiate the best buying or rental price.
• Real estate agents have extensive experience in selling, leasing and buying all sorts of property in Cyprus - and in PrimeStar Estates' case, property valuations and property development - to be able to accurately guide you through the inspection process, and eventually in choosing the right property.
• Real estate agents offer assistance and direction with all legalities, tax and financial issues with buying or renting property in Cyprus, making the entire process secure, hassle free and faster.

Remember, this is a free service: there are absolutely no fees for using an agent to buy or lease houses, apartments or land in Cyprus.

Why should I use PrimeStar Estates when buying property?

Further to the reasons why it is generally in your interest to use the services of a real estate agent when purchasing property in Cyprus (as explained in the frequently asked question above), PrimeStar-States differentiates in three key areas:

1. Personalised service. As a small boutique agency, PrimeStar Estates is in a much better position to treat each client as an important individual, carefully listening to their exact requirements and always showing utmost care and dedication. Because the agency is smaller and more intimate, it is in a much better position to handle each client in this manner.
2. Specialising in property exclusivity. PrimeStar Estates is Cyprus' foremost sole agent expert, i.e. dealing with property exclusivity. Over the years, PrimeStar Estates has acquired extensive experience in handling such arrangements, and in turn, has built a solid reputation in the market for dealing with property exclusivity.
3. A balance of tradition and modern. Dating back to the 1930, PrimeStar Estates is one of Cyprus most well known agencies, with experience in all types of real estate services, including selling, buying, leasing, letting, as well as developing and property valuations. The agency has since re-positioned, now able to bring forth local market knowledge and traditions together with new generation staff, real estate tools and an overall modern approach.

How many properties can I inspect with PrimeStar Estates?

PrimeStar Estates will sit with you and determine what type of property, location and price range is most relevant, then filter available properties in order to make the search process much more efficient.

Ideally you should visit as many properties as possible. PrimeStar Estates will escort you along the way. There are no limitations as to the number of relevant properties you can inspect and of course no charge in viewing these properties. Most times, the agent will also drive you around to conduct the inspection.

How much does it cost to buy or rent property using the services of PrimeStar Estates?

Buying or renting property via the services of PrimeStar Estates is absolutely free of charge. This is common in Cyprus, as estate agents make their commission from the seller's end.

What types of properties does PrimeStar Estates list?

PrimeStar Estates list hundreds of properties throughout Cyprus, both new and resale, including:

• Residential homes, residential homes with land, detached houses, townhouses
• Apartments/flats
• Luxury estates; villas, houses, apartments and penthouses
• New development/constructions; houses and apartments
• All types of land and plots, i.e. agricultural and for building
• Commercial property

Visit our search pages to explore our Cyprus listings:

Residential sale or rent

Commercial sale or rent

Luxury sale or rent

Can PrimeStar Estates assist with obtaining mortgages/home loans?

PrimeStar Estates does not provide home loans, mortgages or any sort of financing as such, but does cooperate with a number of banks and financial institutions in Cyprus who specialise in financing, home mortgages and currency exchange.

PrimeStar Estates can put you into contact with these partners who are able to offer you attractive rates due to a close collaboration and continued business interactions. PrimeStar Estates will help you choose the most suitable option.

Commercial real estate Cyprus

What is commercial real estate?

Commercial real estate incorporates property for commercial or business purposes. This includes such property as retail, shops, office space, as well as industrial type real estate, such as factories and warehouses.

What are the various purposes of commercial real estate?

Apart from seeking commercial real estate to purchase or lease for own business purposes, commercial real estate is often an interesting and worthwhile investment vehicle.

Well located and well managed commercial or industrial real estate can perform extremely well and can pay huge dividends over the long term. Indeed, commercial and industrial real estate generally offer higher returns than residential real estate, both with less tenant turnover and tenancy problems - commercial and industrial real estate tenants usually must sing on to longer lease terms compared to residential tenancies.

Although rather stable over recent years due to a stagnant global and European economy, Cyprus' commercial real estate sector is set too boom in the mid to long term, especially as the island stands to benefit from recently discovered vast natural gas reserves.

What type of commercial property is most common in Cyprus?

Cyprus has a broad range of commercial properties, as required by the general business environment and macro economy. Industry is usually light, whilst office space and small retail is very common.

Generally, light industrial properties are all found in compound-zones (in specific areas of each city). Other commercial, such as office space, hospitality and retail can be scattered throughout each city and in regional areas, although city-centres have a lot more commercial estates than residential, whilst retail can also often be zoned, i.e. large to small shopping malls, and along major roads.

Key sectors in office pace are in professional and financial services (including lawyers, accountants, consultants), offshore-onshore companies and local firms. Office space can be in their own designated building, or part of a mixed-use building with residential, i.e. apartments converted into offices.

Tourism related commercial properties are also very common, especially in the coastal towns of Limassol, Pafos, Larnaca, Protara and Agia Napa. This might include hotels, travel agencies, bars/night spots, restaurants, take-away food, mini-markets, cafes, among other.

What can determine the price of commercial property?

Much like residential, price of commercial property in Cyprus is influenced by a number of factors. Essentially, buying or renting commercial property in Cyprus is worth exactly what a particular buyer is prepared to pay. With this, market demand and macro economic indicators drive commercial property prices - supply and demand, i.e. when demand is low, property prices also tend to reduced, whilst when demand is high, prices increase. Market prices are then also influenced by trends in supply and demand, including price benchmarking, i.e. what were other similar commercial properties in the area sold or leased at, as well as the future outlook.

At the same time, commercial property selling/rental prices must also consider true and current market factors, such as location, i.e. surroundings, local facilities, infrastructure, accessibility, urban planning, etc. Each type of business also targets a specific market, so location very much depends on the type of commercial property. A shop for instance generally aspires to have good visibility along a main road, together with easy access and parking. A factory on the other hand needs to be in a logistically beneficial location (proximity to major roads and other cities) and somewhere perhaps further out form the city centre therefore cheaper operational costs. Other factors include property type and its condition, i.e. physical attributes, size, age, features and facilities.

PrimeStar Estates can provide you with more specific and relevant information and advice regarding commercial property prices and what you can expect to pay after negotiations.