While some reports suggest that sales in the north have hit an all time low, a boom in construction - and claims that a record number of applications for land have been by foreign buyers - suggests otherwise. In contrast to claims made by Turkish Cypriot Prime Minister, Ferdi Sabit Soyer - that the property boom has continued unabated - the Cyprus Mail quotes Kyrenia-based estate agent Altan Ozcihangirli who said he hadn't sold anything all year and others in the industry had suffered similar conditions. Soyer recently published figures showing a sharp rise in the number of foreigners applying for building permission, saying that while 667 foreigners had bought property in 2005, 267 had bought in just the first two months of 2006. However, the paper said that agents were quick to point out that Soyer's figures did not refer to the number of applications made by foreigners, but to actual approvals by the north's Council of Ministers. One agent told the paper that while almost 3,000 applied in 2004, there have only been around 300 this year. Another observation was that applications take a long time to progress, so the increase did not actually reflect those processed - and would explain the apparent drop in transactions. Nevertheless, while many buyers are awaiting the outcome of the Orams case, a leveling of activity in southern Cyprus has drawn more agents to the north as it offers better long term prospects - although increased competition for fewer sales could exacerbate the situation in the shorter term. Another case highlighting the need for transparency in the north was a man arrested in Paphos on suspicion of acting as an intermediary for the sale of Greek Cypriot properties. He was reportedly part of a ring involving Greek Cypriot and foreign businessmen who advertised land plots on the internet. Commenting on this, and concerns about frenzied construction in the so-called 'occupied territories', President Papadopoulos implied that European arrest warrants may be issued against EU nationals acting as estate agents in the north dealing in property belonging to Greek Cypriots. "We shall use all the diplomatic and legal levers at our disposal to put an end to this," he said. However, while the profile of the Orams' case (which may be heard in London in mid-July) may have deterred EU buyers, the use of such warrants may not be effective according to the European Property Association of Northern Cyprus - an organization representing European business interests. Referring to a recent decision by parliament to increase the jail sentence for "illegal possession and use of immovable property" to two years, EUPRO doubts it will stick in European courts because it does not distinguish between mere buyers, estate agents, contractors and developers. Commenting that words such as 'arrest' and 'warrant' are enough to put off many people who may already have heard unsettling things about north Cyprus, Cypriot agent and journalist Thomas Roche said: "No one would expect the explosion of 2003/2004 to happen every year. There used to be 200-300 foreigners applying for permission to purchase annually. That year it hit nearly 3,000, on the hope of a settlement and EU membership for the whole island. Even though that didn't happen, there were still a further 1,400 applications the following year, which I would describe as a natural fall off. This year agents expect in the region of another 1,000 or so." Referring to delays in the processing of applications, Roche said: "Prime Minister Soyer is correct to say there have been delays in processing these sales. The crazy thing is, the permission to purchase has to go through the Council of Ministers, that is to say every case of a foreigner merely buying a villa or an apartment is suppposed to be considered at cabinet level - and with a ten-fold increase of late it's no wonder the system is creaking. There are moves afoot to devolve these decisions to local municipal level, where they should be and this will eventullay improve matters. "It is also right that, although sales of individual units have slackened, interest from foreign companies and investors wanting major plots of land is very high. Land in north Cyprus is still ridiculously cheap compared to the rest of the Mediterranean. Many see the possibilities of simple land-banking or are planning tourism resorts, golf courses etc."
With estimates of around 300 cases involving development of Greek Cypriot property in the north, it is certain that a broader solution must be found. In January, it was announced that the 30-year-old TRNC Land Registry is to be reformed and modernized - with registrations going back as far as 1900 soon to be recorded on computer, documenting current and past ownership of all immovable properties, land and roads. The project, to be undertaken in partnership with a university support, is due for completion in July and will also record Turkish Cypriot properties in South Cyprus. Among new legal changes being prepared to allow Land Registry fees for title deeds to be paid at banks, and the contracting out of land measuring to private companies, reforms also aim to set definitive standards for the property market and guidelines for who can work as an estate agent. Hoping to streamline the sector and speed up Land Registry, the new system would also allow individual title deeds to be given to owners of homes on housing complexes.