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Tuesday, June 2, 2020
Home Property Sales Coronavirus fears hit Cyprus property sales

Coronavirus fears hit Cyprus property sales

PROPERTY sales in March fell by a third compared to March 2019 as coronavirus fears caused house buyers and sellers to reassess their plans.

On March 21 Cyprus airports went into a virtual lockdown with a blanket ban on all passenger flights for 14 days as part of measures to contain the spread of coronavirus. And just yesterday a government decree extended the ban for a further 14 days; according to the Cyprus Mail, air traffic in March fell by 91.6%.

What’s most notable in the figures published by the Department of Lands & Surveys is that the highest downturn in sales is in the districts most popular with overseas buyers, while in the least popular district (Nicosia) the number of property sales actually rose.

It seems certain that overseas property sales will have plummeted as a result of the ban on passenger flights.

With so many developers focussing on building properties for well-heeled investors wishing to obtain citizenship under the Cyprus government’s ‘Cyprus Investment Programme‘, they must be worried how long they will be able to stay in business.

And as Philip Beardwood Bsc Est Man FRICS wrote in an article a few years ago “If I were a bank, I think that I should be spending quite a lot of time in the toilet.”

March property sales

March saw a total of 510 property sale contracts deposited at Land Registry offices across the island compared to the 766 deposited in March last year; a fall of 33%.

Although sales in Nicosia, the capital, rose by 6%, they fell in the remaining four districts:

Hardest hit was Paphos, the most popular hot-spot with foreign investors, with sales falling by 56%.

The second most popular hot-spot with foreigners (Limassol) saw sales fall by 50%

Meanwhile sales in Larnaca and Famagusta fell by 10% and 9% respectively.

Total Property Sale Contracts – 2019/2020 Comparison

DistrictYearJanFebMarAprMayJunJulAugSepOctNovDec
Nicosia2019161194131169213145174103137183208180
2020197178139
Famagusta2019534845968743493040504864
2020504741
Larnaca201911412511814017310215793102160122162
2020147118106
Limassol2019251256287428546219286196240228296284
2020180225143
Paphos2019187211185224404205230166173192233220
202016817181
Totals201976683476610571423714896588662813907910
2020742739510

In the first quarter of 2020, Limassol remains the most popular with those buying property followed by Nicosia (the capital), Paphos, Larnaca and Famagusta. The only two districts to record a rise in sales in the first quarter are Nicosia Larnaca.

3 COMMENTS

  1. A slowdown is more than expected, right? We are not immune to the economic realities that the COVID-19 pandemic has brought to almost every sector of the Cyprus economy, including real estate. By every measure, be it sales volume or construction activity, we are experiencing an economic slowdown. Just like every other sector of the economy (services, tourism, shipping etc)… and of the global economy, for that matter.

  2. I would think the banks, government and lawyers must be delighted to be taking a break from being the major cause of failure of the housing market. At last, something else to cite as being root cause other than corruption, incompetence and greed.

  3. With regrets I have taken decision selling my modest property in Kato-Paphos near to the sea, instead buying in Croatia or upper Italy, no flights /airport incomodities but I cannot replace my dear friends in Cyprus, very sad…

Comments are closed.

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