Cyprus Property News magazine for overseas buyers & real estate investors

Wednesday 30th September 2020
Home Property Sales Property sales collapse hits all markets

Property sales collapse hits all markets

AS WE reported earlier this month, the effects of the corona pandemic have frozen the island’s property market with sales during April falling by 80 percent compared to April 2019.

Further analyses of the April sales by the Department of Lands & Surveys reveals that both the local and overseas market sales have been affected:

Domestic property sales

Property sales to the domestic market (which accounted for 58% of all sales in the month) fell by 85% compared to April 2019 with sales falling in all districts.

Limassol recorded the biggest fall, down 92% compared to the same month last year. Sales in Famagusta fell 90%, sales in Larnaca fell 82%, while sales in Nicosia and Paphos fell 79% and 70% respectively.

Domestic Property Sale Contracts – 2019/2020 Comparison

District Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Nicosia 2019 127 164 115 137 168 121 153 90 114 163 187 154
2020 178 155 124 29
Famagusta 2019 32 19 16 58 45 25 2 13 16 33 13 26
2020 10 18 16 6
Larnaca 2019 54 82 47 73 83 42 90 53 67 81 69 88
2020 76 64 56 13
Limassol 2019 166 152 192 291 329 138 177 134 176 144 210 212
2020 98 136 76 23
Paphos 2019 30 31 28 69 175 69 54 54 34 66 64 69
2020 55 29 26 21
Totals 2019 409 448 398 628 800 395 476 344 407 487 543 549
2020 417 402 298 92

Overseas property sales

Property sales to the overseas market fell by 71% compared to April 2019 with sales falling in all districts.

Hardest hit was Famagusta, where sales were down 89%, followed by Larnaca, where sales fell 84% and Nicosia, where sales were down 72%. Meanwhile, sales in Paphos and Limassol fell 67% and 64% respectively.

Total Overseas Property Sale Contracts – 2019/2020 Comparison

District Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Nicosia 2019 34 30 16 32 45 24 21 13 23 20 21 26
2020 19 23 15 9
Famagusta 2019 21 29 29 38 42 18 47 17 24 17 35 38
2020 40 29 25 4
Larnaca 2019 60 43 71 67 90 60 67 40 35 79 53 74
2020 71 54 50 11
Limassol 2019 85 104 95 137 217 81 109 62 64 84 86 72
2020 82 89 67 49
Paphos 2019 157 180 157 155 229 136 176 112 139 126 169 151
2020 113 142 55 51
Totals 2019 357 386 368 429 623 319 420 244 285 326 364 361
2020 325 337 212 124

Sales to EU citizens

Sales to EU citizens fell 66% compared with April 2019 with sales falling in all districts.

There were no sales of property to EU nationals in Larnaca, Nicosia reported an 84% drop and Nicosia an 82% drop. Meanwhile, sales in Paphos and Limassol fell 50% and 43% respectively.

Foreign (EU) Property Sale Contracts – 2019/2020 Comparison

District Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Nicosia 2019 14 14 9 19 20 16 13 5 8 10 15 14
2020 9 12 9 3
Famagusta 2019 9 6 14 17 10 8 17 14 10 5 9 23
2020 6 14 10 3
Larnaca 2019 12 12 21 18 20 11 16 13 6 23 14 23
2020 21 13 11 0
Limassol 2019 16 25 20 21 28 26 27 17 25 30 26 25
2020 28 30 11 12
Paphos 2019 56 72 61 48 69 59 73 58 61 95 61 72
2020 40 60 25 24
Totals 2019 107 129 125 123 147 120 146 107 110 133 125 157
2020 104 129 66 42

Sales to non-EU citizens

Sales to non-EU citizens fell 73% compared to April 2019 with sales falling in all districts.

Property sales in Famagusta fell 95%, while sales in Larnaca fell 78%. Meanwhile sales in Paphos, Limassol and Nicosia fell by 75%, 68% and 54% respectively.

Foreign (Non-EU) Property Sale Contracts – 2019/2020 Comparison

District Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Nicosia 2019 20 17 7 13 25 8 8 8 15 10 6 12
2020 10 11 6 6
Famagusta 2019 12 23 15 21 32 10 30 3 14 12 26 15
2020 34 15 15 1
Larnaca 2019 48 31 50 49 70 49 51 27 29 56 39 51
2020 50 41 39 11
Limassol 2019 69 79 75 116 189 55 82 45 39 54 60 47
2020 54 59 56 37
Paphos 2019 101 108 96 107 160 77 103 54 78 61 108 79
2020 73 82 30 27
Totals 2019 250 257 243 306 476 199 274 137 175 193 239 204
2020 221 208 146 82

What of the future?

Writing in the Financial Mirror, the CEO of Danos & Associates Panos Danos said “The effects of the pandemic on Cyprus real estate are intensifying” noting that “Demand from abroad, which has led to a market recovery in recent years, primarily in Limassol and Paphos, is now almost non-existent.”

But on a positive note he wrote that “Buying a home, however, both in times of crisis and otherwise, is always a necessity. People will never stop buying or renting homes. In Cyprus, most developments are qualitative and if their price levels remain reasonable, they will soon be met by demand.

“Of course, everything will depend on the length as well as the depth of the crisis and the economic aftershocks it will leave on the property market.”

Serious recession

Speaking to the media yesterday, Central Bank Governor Constantinos Herodotou warned that the economy will experience a “serious recession” in 2020.

“The economy’s prospects for 2020 and afterwards are dramatically overshadowed by the negative developments of the coronavirus pandemic.”

In its annual report, the Central Bank said the pandemic “constitutes an extremely serious internal and external shock which is affecting demand.

“The financial impact cannot be quantified with precision for the time being…given that there is insufficient economic data for 2020, nor can the pandemic’s duration be projected.

“The question is not whether a recession will take place but how extensive it will be.”

Cyprus Property Sale Contracts 2000 – 2020

Year Overseas Sales Domestic Sales Percentage
Overseas Sales
Total
Sales
2000 450 12,214 3.6% 12,664
2001 1,207 12,849 8.6% 14,056
2002 2,548 14,111 15.3% 16,659
2003 3,981 15,294 20.7% 19,275
2004 5,384 11,947 31.1% 17,331
2005 6,485 10,106 39.1% 16,591
2006 8,355 8,598 49.3% 16,953
2007 11,281 9,964 53.1% 21,245
2008 6,636 8,031 45.2% 14,667
2009 1,761 6,409 21.6% 8,170
2010 2,030 6,568 23.6% 8,598
2011 1,652 5,366 23.5% 7,018
2012 1,476 4,793 23.5% 6,269
2013 1,017 2,750 27.0% 3,767
2014 1,193 3,334 26.4% 4,527
2015 1,349 3,603 27.2% 4,952
2016
1,813 5,250 25.7% 7,063
2017
2,406 6,328 27.5% 8,734
20181 4,367 4,875 47.3% 9,242
2019
4,482 5,884 43.2% 10,366
2020 (Apr)
 998 1,209 45.2% 2,207
Totals
70,871 159,483 30.8% 230,354

1 The Department of Lands & Surveys has advised that overseas sales in 2018 and subsequent year should not be compared to sales in previous years due to changes in the methodology used to classify ‘Aliens’ (foreigners).

2 COMMENTS

  1. Bad experience buying a apartment in 2008 still 30% loss on present valuation.

    With covid-19 still present, cannot see a recovery for 3 plus more years, many new developments built, half built will stand empty for years, with no buyers.

    With the previous fiasco with title deeds and developers purchased mortgaged land unknown to buyers and corrupt banks, all this information still in the mind of many people who took a hit, the property market will take a down turn with property and rental prices dropping, I cannot see a recovery soon.

  2. Firstly and foremost I hope everyone is well and safe…Maybe a good time for the relevant departments to concentrate on the backlog of Title deeds as they’ll have no new sales to deal with… just a hopeful thought :)

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