Europe

UK base transactions trigger real estate outlook

Cypriots who own land in non-military areas within the UK base may sell or develop their property in accordance with a groundbreaking agreement between Cyprus and the United Kingdom.

UK bases have lifted restrictions on real estate development in demilitarized zones, hampering business and tourism growth for decades, and local governments are hoping for an avalanche of applications.

The agreement will come into effect on Monday.

It essentially opens the foundation for commerce that may change the development map. Coastal area Limassol and others, while creating housing and investment opportunities for middle-income Cypriots and foreigners looking for a home by the sea.

In a comment to state radio CyBC, base residents have been waiting for an agreement for eight years, said Panteris Georgewoo, mayor of Limassol village Ipsonas.

He said residents, especially those who mortgaged their property but couldn’t make good use of them to pay off their loans, would be given room to breathe.

“This agreement will bring significant development to the region within the Sovereign base,” said Georgeou.

Mayor Ipsonas said it is a well-known fact that developers and other investors have been buying land since the agreement was announced in 2014.

“There is no reason to hide it.

“We know this is happening. Some developers are buying at a price lower than their value since Monday and plan to build a housing unit or sell it at a higher price. We are standing up, “says Georgeou.

He said the municipality of Ipsonas could be the region that would most benefit from the agreement with the base.

“Since 25% of Ipsonas’ territory is on British bases, the implementation of this agreement will greatly contribute to the development of the region and community.

“More than 8 square kilometers are in the British military base.

“For residential, commercial and sports projects, 3km³ is a green light. Locals will be able to build or develop plots.”

Mayor Ipsonas said the deal would allow foreign investors to invest in real estate on British bases.

“Procedures and requirements are Republic of Cyprus.. “

Property value

Veteran real estate agent Antonis Royzo spoke with Financial Miller and said the deal between Cyprus and the UK would create a new pocket of real estate that would offer investment opportunities.

“This agreement will create investment opportunities for home developers while pushing down home prices, giving middle-income households more options,” said Royzo.

Although not considered large enough to make a big difference in the real estate sector, these properties are lowering prices and rents in the surrounding area.

“Areas that used to be close to zero now have relatively high price tags, such as the coastal areas of the Famagusta region like Olmidia,” said a real estate expert.

This can adversely affect the prices of other tourist destinations in the area.

“Investors looking for an opportunity to build a hotel may have previously turned to locations around Ayia Napa.

“Currently, these areas will be competing with new properties on the market following the agreement, which will reduce prices in some regions,” said Royzo.

“Especially in the Dekeria base area, such as Olmidia, a village in the Famagusta area, there are many properties released along the coastline.

Asked who would be attracted to the new property, Royzo said interest would come primarily from local developers trying to build housing units for middle-income Cypriots.

“If these properties develop into housing projects, they could be of interest to foreigners from the UK, especially looking for homes near the sea.”

On-base real estate can also attract the attention of investment funds and real estate investment trusts, and if prices start to rise, they will buy cheaper later and try to sell at higher prices.

“These vast lands may be ideal for projects that are lacking in these areas, such as hospitals and private clinics.”

Alecos Vilanos, a real estate consultant at Vilanos Real Estate Agents, told Financial Mirror that he believes there are new real estate opportunities for home developers.

“Sure, this pocket doesn’t attract the attention of large project developers such as towers, but it can get the attention of home developers,” Vilanos said.

He argues that these properties do not attract developers looking to build luxury properties for foreign buyers.

“This means that owners of these properties cannot secure as high an offer as in neighboring areas.

“For example, Akrotiri’s property isn’t as valuable as the nearby Zakaki where the casino is built.

“this is, Middle class Cyprus With some money in your pocket, you can get a wider range of options at a lower price when trying to buy a home. “

Vilanos said this could in turn put pressure on home prices and rents in the wider Limassol region.

Business regulation

One of the most important changes in business regulation is about eligibility criteria for starting a new business.

The new system eliminates the need for employers to indicate local or military needs to establish a business at the SBA.

Instead, it will take effect when the NMD comes into force, allowing employers to obtain a business license under the new SBA Act.

The ability to regulate a particular business unit through law, environmental issues, new planning systems, and some military considerations are key factors that SBAA considers when considering a business license application.

However, some companies will not be able to license when NMD is launched until SBAA introduces the relevant framework. This will be done as quickly as possible in the next few years.

The current business licensing process remains largely unchanged until the framework is online.

post UK base transactions trigger real estate outlook First appeared Financial mirror..

https://www.financialmirror.com/2022/05/15/british-bases-deal-triggers-real-estate-prospects/ UK base transactions trigger real estate outlook

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