Cyprus Property: Are we self-destructive… ?

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BY GEORGE MOUSKIDES

Unfortunately in Cyprus we all, from the political leadership down to the last citizen, act as if on a self-destruction crusade.
Examples of this unacceptable behaviour and line of policy by our leaders are ample.
Law violations, embezzlement and unwise spending of public finances are an everyday phenomenon.
The Accountant General has a hard time keeping up with these practices and not a week goes by without her office reporting these examples of such behaviour.
What are we to remember first? The Eurocypria scandal, the situation in CyBC, Cyprus Airways, the Cyprus Institute, the Conference Centre, Kofinou Abattoir, or the recent scuffles for the standardisation of halloumi production?
Let us keep it to that and not rewind our memory to the tragic days of the Mari incident.
We are ready to agree that political parties, if functioning properly, are the cells of democracy, help develop new ideas and keep an eye on governments. There is of course an opposing view, which suggests that out of fear for the loss of votes, political parties develop relations of nepotism with their voters and often oppose legislation that would be unappealing to their customers, the voters. They usually say they are protecting people’s interests, while what they are actually doing is telling people what they like to hear.
Even when they finally decide to vote for something it is actually so late it becomes obsolete. A good example is the recent legislation on the abolition of property transfer fees.
Let us not forget that as we speak of transfer fees we cannot fail to point out that the dire situation the real estate sector has found itself in is the state’s fault.
The government, instead of tightening state finances and expenditure, something which will push the real estate market, acts in exactly the opposite way.
Cash flow is down to a bare minimum and all businessmen have been trapped. If public finances had been put in order then the state would not have drained the market of cash flow, interest rates would have been down to acceptable levels and businessmen would have the chance to borrow and push ahead with new ventures, helping ease unemployment as well.
The government’s easy way out is to blame the current situation on the international rating organisations and the heavy exposure of Cypriot banks in the Greek market.
While Greek exposure might be a valid argument not all can be blamed on this. The downgrading has come about as a result of the government’s inability to bail out the Cypriot banks.
Remaining true believers in optimism, we think this situation is reversible. If we take the economic miracle following the Turkish invasion as an example we see that anything is possible if we adopt a positive attitude.
The government, political parties and all of us can help bring about change. Especially the first two parts of the equation can help breathe new life not only to into the real estate sector but to the economy as a whole.
Regarding the sector of real estate, our Association has suggestions which have been documented on many occasions. Examples of these would be tax deductions for new and old properties, new ways of financing purchases of properties, the triangular exchange, re-investment of gains, etc.
It only takes some smart moves to re-invigorate the sector of real estate. If the government officials have not read about them they can pick up the phone, give us a call to remind them. Let them stop acting in such a self-destructing manner.

George Mouskides is President of the Association for the Promotion of Property Development and Manager at FOX Smart Estate Agency.