Cyprus Property News magazine for overseas buyers & real estate investors

Thursday 9th July 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

DistrictYearJanFebMarAprMayJunJulAugSepOctNovDec
Nicosia201912716411513716812115390114163187154
202017815512429
Famagusta201932191658452521316331326
20201018166
Larnaca2019548247738342905367816988
202076645613
Limassol2019166152192291329138177134176144210212
2020981367623
Paphos20193031286917569545434666469
202055292621
Totals2019409448398628800395476344407487543549
202041740229892

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

DistrictYearJanFebMarAprMayJunJulAugSepOctNovDec
Nicosia2019343016324524211323202126
20201923159
Famagusta2019212929384218471724173538
20204029254
Larnaca2019604371679060674035795374
202071545011
Limassol20198510495137217811096264848672
202082896749
Paphos2019157180157155229136176112139126169151
20201131425551
Totals2019357386368429623319420244285326364361
2020325337212124

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

DistrictYearJanFebMarAprMayJunJulAugSepOctNovDec
Nicosia2019141491920161358101514
202091293
Famagusta20199614171081714105923
2020614103
Larnaca201912122118201116136231423
20202113110
Limassol2019162520212826271725302625
202028301112
Paphos2019567261486959735861956172
202040602524
Totals2019107129125123147120146107110133125157
20201041296642

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

DistrictYearJanFebMarAprMayJunJulAugSepOctNovDec
Nicosia20192017713258881510612
2020101166
Famagusta201912231521321030314122615
20203415151
Larnaca2019483150497049512729563951
202050413911
Limassol201969797511618955824539546047
202054595637
Paphos2019101108961071607710354786110879
202073823027
Totals2019250257243306476199274137175193239204
202022120814682

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

YearOverseas SalesDomestic SalesPercentage
Overseas Sales
Total
Sales
200045012,2143.6%12,664
20011,20712,8498.6%14,056
20022,54814,11115.3%16,659
20033,98115,29420.7%19,275
20045,38411,94731.1%17,331
20056,48510,10639.1%16,591
20068,3558,59849.3%16,953
200711,2819,96453.1%21,245
20086,6368,03145.2%14,667
20091,7616,40921.6%8,170
20102,0306,56823.6%8,598
20111,6525,36623.5%7,018
20121,4764,79323.5%6,269
20131,0172,75027.0%3,767
20141,1933,33426.4%4,527
20151,3493,60327.2%4,952
2016
1,8135,25025.7%7,063
2017
2,4066,32827.5%8,734
201814,3674,87547.3%9,242
2019
4,4825,88443.2%10,366
2020 (Apr)
 9981,20945.2%2,207
Totals
70,871159,48330.8%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 :)

Comments are closed.

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