Compare Listings

Cyprus Property Valuation

CENTURY 21® and our certified partners are officially licensed professionals who undertake the valuation of all kinds of immovable property in Cyprus.

The main reasons why you may need a valuation in Cyprus are the following:

  • To use it with a bank for financing purposes
  • To estimate the fair value of a property, as a buyer or a seller in a property transaction
  • For regulatory reasons as accounting requirements will request it
  • For taxation purposes when negotiating a valuation with tax authorities
  • When disputes arise in divisions of property, divorce cases, in property exchanges, rent control law, etc.

An official property valuation includes:

  • The market value and the force sales value of a property
  • Commentary on the legal and physical characteristics of the property and it’s future potential
  • Any other advice that the owner may require for the specific valuation use

The real estate industry in Cyprus is one of the bright spots in the economy. In the past seven years, the industry has continued to do well, as developers rush to meet the rising demand. This development has spread to many other sectors. At CENTURY21, we are the leading property company in the country. We have a one-stop shop that serves developers and individuals. Cyprus property valuation is one of our fastest-growing segments. We have a team of experienced valuation partners that has been in the industry for decades.

What is Cyprus Property Valuation?

cyprus property valuationAs the name suggests, property valuation is the process of conducting research to find an approximate value of a property. The property in question can be a piece of land, house, or even a big development. The demand for these valuation services has been increasing as the real estate sector continues with its growth. Cyprus property valuation experts use their experience to calculate the value of the properties. They then come up with a report that is presented to the clients. At CENTURY21, we are the fastest-growing property valuation company in Cyprus.

Who Needs Property Valuation?

Property valuation is a wide sector that is needed by various stakeholders. Virtually everyone involved in the real estate sector uses valuation in one way or the other.

Real estate developers

Real estate developers are usually the primary customers of Cyprus property valuation services. They engage us to find the real value of their properties in several scenarios.

First, they need valuation when they are acquiring a piece of land or property. This is a very important step to take because they want to pay a fair price during this acquisition. Therefore, they use valuation services to get the approximate value of a property they want to acquire.

Second, they need valuation when they want to apply for financing. As in most countries, the real estate sector in Cyprus is usually funded by loans. As such, banks need to see a valuation report to determine the amount of money they can lend out.

Third, they need a property valuation when they are selling their property. This valuation is done because they want to sell the property at the right price. Indeed, some of our biggest clients are companies that are in the process of disposing their properties.

Fourth, developers need a Cyprus property valuation to estimate the total amount of taxes they will pay on transactions.

Lenders

Lenders such as banks and private equity companies want to know the real value of a property before they extend financing. As part of their due diligence, they cannot rely on a Cyprus property valuation report from the borrower. As such, they engage services of independent Cyprus property valuation companies to come up with a detailed report.

Individuals

Individuals also require quality Cyprus property valuation services. There are several scenarios when this is important. First, an individual with a vast portfolio of property may want to calculate the value of his assets. As a result, they engage the services of a valuation company to do this estimation.

Second, they need valuation services when there is an issue of division. This can happen during a divorce proceeding or when they are drafting their last will and testament.

Third, they need valuation services when they are buying or selling a piece of property. As with the real estate developers, individuals want to get a good deal when making these transactions.

Finally, individuals engage us for Cyprus property valuation services when they are calculating their net worth.

Corporations

Corporations use our Cyprus property valuation in various scenarios. For example, they use these services when compiling their financial statements. This is usually required by the law. A part of the statements is the balance sheet, which contains the assets component. Therefore, companies use our property valuation services to come up with an accurate value of their properties.

Second, corporations use our Cyprus property valuation services when they are doing special transactions. An example of these transactions is mergers and acquisitions. When mergers and acquisitions happen, they want to ensure that they are getting the real value.

There are other entities that use Cyprus property valuation services such as non-governmental organizations and the government.

Why Property Valuation is Important

Property valuation is important mostly because it helps to ascertain the real or approximate value of the property. This property could be a piece of land, a residential property, or a commercial property.

There are several benefits of getting the right value of a piece of property. First, banks and lenders can calculate the amount of money they can lend to a person or a company. Second, companies can provide accurate financial statements. It is usually a crime to inflate or reduce the value of an asset. This is considered lying to investors and the tax authority. Third, Cyprus property valuation is essential in reducing conflicts between multiple parties.

Steps Followed in Cyprus Property Valuation

The process of valuing a property is relatively simple, especially when experienced professionals are being used. Also, in Cyprus and around the world, it is essential to ensure that the person or company doing the valuation is licensed.

There are three main approaches to conducting a good property valuation in Cyprus. These are:

The Income Valuation Approach

This is a method of valuing a property based on the current income that it generates. This is an approach that is ideal for a developed property that is already bringing in cash. A good example of this is when an apartment block owner wants to sell it.

In this case, the valuation professional will look at the amount of money the apartment block generates and use this number to estimate the value of the property. This is done by looking at the annual income and subtracting the expenses. This is then given a multiple. For example, if a property generates $1,000,000 every year and has expenses of $500,000, it means that it has a profit of $500k. If the valuation professional uses a multiple of 10, it means that the property is worth $5 million.

Sales Comparison Approach

This is a Cyprus property valuation approach that compares the property with those that have been sold recently. The idea is that the property has a similar valuation to those that have been sold recently. For example, if you have a two-bed apartment, we can use data of recently-sold two-bed apartments and find an ideal value.

Cost Valuation Approach

This is a valuation approach that looks at the cost of the land plus the cost of replacing the property. It should also subtract the functional depreciation. There are various examples of this approach in use. For example, if a person is selling a developed property, the valuer can look at the cost of demolishing and redevelopment.

In general, the process of Cyprus property valuation involves a site visit that is followed by a comprehensive report. The report is usually text-based and has to have photos taken.

FAQs of Cyprus Property Valuation

Are Cyprus valuation professionals registered?

It is in the interest of all stakeholders to ensure that valuation professionals are registered. In Cyprus, all valuation professional need to be registered by Etek, the Cyprus Scientific and Technical Chamber. This is the technical organization of all civil engineers, surveyors, and valuers.

What language are Cyprus valuation reports in?

At CENTURY21, we offer our valuation reports in English and Greek. We do this to serve our diverse list of clients.

Are there any standards followed in Cyprus valuations?

Cyprus itself does not have specific valuation standards. However, we operate under the Royal Institute of Chartered Surveyors (RICS) standard. These are some of the most comprehensive standards in the world.

Do you appear as expert witnesses?

Valuation professionals are often called upon in legal proceedings to share their expert opinions. These requests are usually mostly in divorce and corporate proceedings. At CENTURY21, we have cultivated a reputation as a neutral expert witness in legal proceedings.

Do you do development appraisals?

Development appraisals approximate the total cost of developing a project. At CENTURY21, we are the leading Cyprus property valuation experts that help developers estimate the total cost of running a certain development.