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Cyprus lacks Mykonos wow factor

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Celebrity name-branding or owning property in a certain location can impact real estate prices.

Mykonos is becoming more popular among celebrities in recent years.

An island of just 30,000 people in winter which more than triples to 100,000 during summer, accommodates around two mln tourists a year, is evidence enough.

Each place has its attraction and characteristic.

And this Aegean island is barren of trees, either by nature or burned by locals (burning down vegetation stops it from being classed as forest land, which prevents them from developing it).

However, what is interesting is that the local architecture is preserved due to strict planning, even for public WCs, hotels, and others.

Despite being very dangerous, the narrow streets have their attraction, especially at night with no lighting, pavements, etc.

A visit to Mykonos is an experience worthy of a visit, at least once in a lifetime. And for those who have not been, I provide below a sort of comparison with Cyprus, rating each service or facility with 1-10 marks.

  Mykonos Cyprus
Direct flights 3 7
Hotels quality 6 8
Cost of hotel beds 8 7
Service 10 out of 10 7 out of 10
Quality of food 8 7
Safety on streets 5 8
Entertainment 9 7
Transport/taxis-costs 10 4
Policing 4 6
Food cost 9 6
Drinks 9 6
Souvenirs and local craft 9 2
Sea quality 5 9
Beach service 8 5

Real estate prices depend on location; the view offered, the quality of the beach and who your neighbours are.

On average, Mykonos prices near the beach but with very good views, with reasonable public access are:

Apartments €5,000/sq.m. (Cyprus €3,000/sq.m.)

Houses €15,000/sq.m. (Cyprus €5,000/sq.m.)

For Beach units:

Flats €10,000/sq.m. (Cyprus €7.000/sq.m. save Limassol)

Houses €20.000/sq.m. (Cyprus €8.000/sq.m. save Limassol)

Mykonos is not a destination for thin wallets.

Not only for the accommodation but eating out (if you go out of town) is an experience in itself.

A bottle of wine is on average €30 (Cyprus average €15), climbing to several thousand euros, whereas on average the taxi cost is €30 + €30 for the return trip, and public transport is very cheap €2.50-3/trip.

Property taxes are another item to note, bearing in mind that Cyprus real estate becomes quite competitive with our abolition of the property tax.

For say, a two-bedroom apartment at Mykonos property taxes could reach €270-350 p.a.

Also, the let period is around five months p.a., unlike the average let period of 7 months p.a. in Cyprus.

The let rates are similar to those in the Protaras area.

In contrast, lets must be more than 30 continuing days to be legal (be it that this regulation is similar to Cyprus, but it is not implemented in either country).

The constant wind and choppy sea are quite common, nicknaming Mykonos as The Island of Winds.

Thus, the local stay period is on average 4-5 days (Cyprus 7-10 days).

Having an impression as a tourist is not necessarily correct since there must be other places and locations in real estate and entertainment at much lower prices.

Some Cyprus locations have acquired a name for themselves based on the celebrities who have acquired real estate.

The acquisition of properties at a project at Peyia (Cap St. George) by several international football players and other celebrities (such as Shakira) has caused prices to shoot up.

It is one of the few projects that have not been affected by the passport fiasco and the pandemic.

In my own experience, to attract a celebrity to a project in Crete, the celebrity was not happy to get a substantial discount but to offer her a 4-bedroom villa for free (for €2.5 mln) and in return to host a popular TV programme in the project.

Our office did not agree, and I wonder, had we agreed, what the result would have been.

 

Antonis Loizou, Real Estate Valuer, Estate Agent & Property Consultant – the views expressed are his own