Home Property Sales Disappointing start for property sales

Disappointing start for property sales

THE FIRST month of the new decade saw Cyprus property sales fall by 3 percent compared to January 2019 according to official figure from the Department of Lands and Surveys.

Since their peak in May 2019, property sales have been like riding a roller-coaster; up for a month or two and then down and up again. It’s difficult to predict how the situation will change in the coming year, but we know that the Cyprus Land and Building Developers Association (LBDA) is concerned.

LBDA representatives met with Central Bank officials last month and raised the issue of banks not providing loans for first-time home buyers as most of their applications are rejected during the  screening process.

The banks are naturally fearful of giving out loans as it may result a repeat of events that led to the 2012 financial crisis. Remember the PIMCO due diligence report of the banking system, which laid the system’s ‘idiosyncrasies’ bare?

The government’s new housing policy is offering incentives to developers to offer cost-price homes for low-income groups, but developers have shown little interest in the scheme.

Property sales January 2020

According to official figures 742 contracts for the purchase of property were deposited at Land Registry offices during January 2020; a fall of 3% compared to the 766 deposited in January 2019.

Although sales in Larnaca and Nicosia rose by 29% and 22%, these were wiped out by falls of 28% in Limassol, 10% in Paphos and 6% in Famagusta.

Total Property Sale Contracts – 2019/2020 Comparison

District Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Nicosia 2019 161 194 131 169 213 145 174 103 137 183 208 180
2020 197
Famagusta 2019 53 48 45 96 87 43 49 30 40 50 48 64
2020 50
Larnaca 2019 114 125 118 140 173 102 157 93 102 160 122 162
2020 147
Limassol 2019 251 256 287 428 546 219 286 196 240 228 296 284
2020 180
Paphos 2019 187 211 185 224 404 205 230 166 173 192 233 220
2020 168
Totals 2019 766 834 766 1057 1423 714 896 588 662 813 907 910
2020 742

3 COMMENTS

  1. Due to the fact the deeds are nowhere to be seen . Been waiting 15 yrs and all I get is the banks have made a mistake on their side.

    Just give me my deeds and stop lying to people.

  2. Well I know only too well that the banks are one of the biggest problems here. We’ve tried twice to get a small loan with a 50% deposit, both of us work full time and the banks aren’t interested. It’s very frustrating.

  3. Well in Lemesos the developers do not get advice from economists and are building far in excess of demand.This will cause a lot of companies to go to the wall.

    It is just the beginning of a downturn in Limassol that will last 2 to 3 years.

    On other towns I am neutral for the next 2 to 3 years but the selling will remain static.

    Ed: I can see further problems when those who have acquired citizenship under the investment scheme try to sell their properties in 2 or 3 years time.

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