CYPRUS: Land Registry can’t explain why a plot worth EUR 70 mln is now EUR 5 mln

The Land Registry admitted it may have been mistaken in their appraisal of a state plot opposite the former Nicosia Hilton Hotel in the heart of the capital, estimating the property at just €5 mln down from €70 mln.

The House Watchdog Committee heard Andreas Socratous, the director of the land registry department, acknowledge that there may have been a mistake in the method of evaluating the piece of prime real estate, which in 2014 was valued at €70 mln.

"We have identified the problem and are looking into it and will let you know when we are ready. Today we are not ready to respond,” said Socratous about the discrepancy in the figures.

Auditor General Odysseas Michaelides argued against the methodology used by the land registry in the general valuation of real estate at 2018 prices.

Stefanos Ioannou, from the auditor general’s office, gave a list of recent estimates made by the Land Registry for the specific state plot.

In 2010 the valuation of the land was estimated at €143 mln, with the service suggesting the government demand €160 mln from Qatari investors who were interested to buy the property at the time.

The deal eventually fell through as the Qatari's, looking to invest 500 mln in building a hotel and other properties, disagreed with the high price tag and the plot is, presumably, still up for sale.

In 2013 the land was estimated at €92 mln, in 2014 at €70 mln and the latest estimate in 2018 was €5.3 mln.

Cyprus Green MP George Perdikis said that the incident is not insignificant, as it shows that the Land Registry’s evaluation has led to the devaluation of a number of state properties such as the plot in question.

“There might be serious financial consequences, as the state may lose out on serious income in cases of land exchange”.