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Property sales in Cyprus slump to a 2 year low

Property sales in January hit a year low heightening concerns that the real estate sector will continue to suffer problems in 2011.

JANUARY 2011 saw property sales in Cyprus falling to a 2 year low. Industry watchers expect that the lack of sales will lead to further price reductions while developers believe that the negative climate will persist if no support measures are taken.

Demand has fallen in all of the seaside towns, while sales in Nicosia appear to be stabilizing.

According to the Land Registry, the number of contracts of sale deposited at Land Registries throughout Cyprus during January was 522 compared with 570 in January 2010; a fall of 9%.

Sales fell in all the seaside towns: Larnaca (-21%), Limassol (-12%), Paphos (-11%) and Famagusta (-9%).

Nicosia, which constitutes the largest part of the total demand, saw property sales increase by 3% to 174 from 169 in January 2010.

Cyprus property sales - January 2011

Source: Department of Lands and Surveys

In a statement to StockWatch, property valuator, Polys Kourousides said that sales will continue to drop in the next few months in all cities. “Nicosia will show stabilization trends”. Mr Kourousides believes that prices will fall slightly.

Chairman of the Pancyprian Association of Land Developers, Lakis Tofarides, said that “The market reacts as expected. As long as no measures are taken, the problems will not be solved.”

Overseas sales

Somewhat unexpectedly, property sales to foreign buyers improved in January with the total number of contracts of sale deposited throughout the month up 79% compared to January 2010.

Demand rose in all areas: Larnaca (up 229%), Famagusta (up 158%), Paphos (up 43%), Limassol (up 32%) and Nicosia (up 22%).

Cyprus property sales to foreign buyers - January 2011

Source: Department of Lands and Surveys

Readers' comments

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  • @T George – Unfortunately, the publicly available figures published by the Land Registry only distinguish between ‘Cypriots’ and ‘non-Cypriots’.

  • T George says:

    Where are the foreign buyers from I wonder? Could they be Egyptians, Lebanese, Jordanians etc worried about regime change.?

    It is an almost freak statistic considering January is traditionally a week month.

  • David Allen says:

    UK buyers will not return in any numbers to Cyprus until property prices are significantly reduced. The denial that this needs to happen in Cyprus is simply preventing recovery taking place sooner. Developers particularly need to bite the bullet and get on with it. It seems that many of them have forgotten they didn’t even have businesses 10 years ago!

  • James JH Lockhart says:

    Nigel

    Thanks so 1605 transactions in Jan 2007 is down to 522 in Jan 2011.

    Maybe somebody should give a graph to the Minister.

  • @James

    The only figure I can give you is that the total number of contracts of sale deposited in January 2007 was 1,605. (This includes contracts deposited on behalf of both Cypriot and non-Cypriot buyers).

    The Land Registry did not start producing a monthly analysis by area until 2008 (or if it did, I cannot find them).

  • James JH Lockhart says:

    Nigel,

    Is it possible for you to put the 2007 figures against the 2010 set? and this will show how far the market has dropped.

  • Peter says:

    Spread the word – Buy in Cyprus, and you will never get ownership, although you have paid in full for your home, the title deeds will always have someone else’s name on them, your developer will take out a second and third mortgage on your villa, and when he goes bankrupt the bank will move in and repossess you home. All that you have spent your life working for will be lost and you will be homeless and have no where to live …..Coming soon to a town near you.

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