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Property sales record strong growth

Property sales in Cyprus increased for the third consecutive month in May with strong growth recorded in all districts compared to May 2013 according to the latest figures from the Department of Lands and Surveys.

PROPERTY sales during May recorded a strong growth compared to May 2013 according to figures published by the Department of Lands and Surveys giving hope that a recovery in the island’s property market may be underway.

During May a total of 551 contracts for the sale of commercial and residential properties and plots of land were deposited at Land Registry offices across Cyprus; an increase of 157% on the 214 contracts deposited during the same period last year.

Of those 551 contracts 72% (398) were deposited on behalf of domestic buyers, while 28% (153) were deposited in favour of overseas buyers.

Sales in all districts made significant gains

In percentage terms, Nicosia led the field with sales increasing by 388% to reach 117 compared to the 24 sold in May 2013. Sales in Famagusta went up 327% and sales in Limassol increased 157%, while sales in Paphos and Larnaca increased by 121% and 57% respectively.

Cyprus property sales - May 2014

Overall sales during the first five months of 2014 have increased 20% compared with the same period last year.

However, this increase should be treated with some caution. Much of the improvement may result from the drop in sales last year following the decisions of the Eurogroup that resulted in the closure of the banks for several days and the restrictions imposed on trade.

Domestic sales

Domestic sales in May increased by 178% compared with the same month last year, rising to 398 from 143, with sales improving significantly in all districts.

In percentage terms, Famagusta experienced the greatest improvement with domestic sales up 533% compared to May 2013. Sales in Nicosia went up 329% and sales in Paphos increased 188%, while sales in Limassol and Larnaca increased by 178% and 36% respectively.

Cyprus: Domestic property sales May 2014

During the first five months of 2014, domestic sales are up 22% compared to the first five months of 2013, having increased to 1,307 from 1,073.

Overseas property sales

Property sales to the overseas market in May performed strongly with sales more than doubling compared to May last year rising to 153 from 71; sales were up in all districts.

In percentage terms, Nicosia led the charge with sales increasing 800% to reach 27 compared with 3 in May last year. Sales in Larnaca increased 140% to reach 24 compared with the 10 sold last year. Sales in Limassol rose 106%, while those in Famagusta and Paphos rose by 80% and 60% respectively.

Cyprus: Overseas property sales May 2014

During the first five months of 2014, sales to the overseas market are up 15% compared to the same period last year having increased to 503 from 439.

Readers' comments

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  • anna says:

    With most people not confident with Bank stability, many have been steadily withdrawing or not putting their savings into the banks are now buying cars or properties instead of stashing their money under the mattress!

  • @david ayres – There is a massive oversupply of new, unsold property at the moment, one of the independent reports put the number at 50,000. So finding someone to buy a particular property is very difficult at the moment.

    I suggest you advertise it as widely as possible – and make sure you check details of the agency agreements as some of them will charge even though the purchaser is found by another agency.

    Also there are many websites where you can advertise the property free.

  • david ayres says:

    Dear Nigel, Thank you for this encouraging outline of recent property sales developments. My son and I have been trying to sell a villa in Mysogi since the death of his wife, but with little success using 3 Paphos based estate agents. We are wondering which selling / marketing strategies and targeted buyers currently produce most success? eg Should we also be using UK based selling agents?

    Thank you again for the excellent series of newsletters since we last communicated. Regards, David Ayres

  • Richard says:

    The whole issue around NPLs will continue to be a game of cat & mouse – with threats and counter-threats on both sides until such time as there is a REAL reason to buy in Cyprus (a.k.a – energy pipeline).

    As soon as that manifests itself – what’s the betting developer debt will be cleared as if by magic (and the way it will be cleared Paul Daniels would probably approve of) – and houses will be wrestled off people in a flash if they have NPLs on them.

    The rules just seem to be made up yearly to suit whatever circumstances the ruling elite classes in the Republic feel like. I heard an extremely interesting talk recently on how any Republic system eventually implodes. For for thought?

  • Paradox says:

    I completely agree with both Richard and Milo, and as a further depressant to the market, very many domestic property resales are faltering because of stonewalling by banks due to developer NPLs and previously undisclosed encumbrances on land.

    It’s worth mentioning also I think, that more and more incidents of ‘loan rolling’ are coming to light, particularly with reference to the former Laiki Bank, and this is having the direct effect upon innocent buyers who have paid in full for their properties whereby they are being held responsible for developer NPL’s, whereas in fact, monies paid to Laiki by developers to service and clear specific loans on specific projects were never applied correctly by Laiki, thereby leaving these loans as appearing to be non-performing.

  • richard says:

    Far too early to be identifiable as any kind of discernible trend.

  • Milo says:

    Hadn’t Cyprus just experienced its shock bailout/ haircut in March April last year 2013?

    So sales last year were at a record low, anything since looks surprisingly high….when in effect it’s depressingly low..

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