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Thursday 29th October 2020
Home Property Sales Domestic property sales on the up

Domestic property sales on the up

Property sales to the domestic market in Cyprus showed a marked improvement in June, although sales to the overseas market have yet to show any signs of making a recovery, according to official figures published by the Department of Lands and Surveys.

As we reported last Thursday, the Government’s decisions to ease the COVID-19 lockdown measures and subsidise housing loans has helped the island’s property market to show signs of recovering.

But further analyses of the number of property sales in June reveal that the Government’s decisions have had a very limited effect on the overseas (foreign) segment of the market.

Domestic property sales

Property sales to the domestic (Cypriot) market, which accounted for 70% of all sales in June, rose by 14% compared to June 2019.

Although domestic sales in Paphos fell by 74%, this wall was outweighed by gains in the remaining four districts. Sales in Famagusta rose by 72%, whiles sales in Larnaca, Nicosia and Limassol rose by 72%, 69% and 38% 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 83 167
Famagusta 2019 32 19 16 58 45 25 2 13 16 33 13 26
2020 10 18 16 6 8 43
Larnaca 2019 54 82 47 73 83 42 90 53 67 81 69 88
2020 76 64 56 13 28 71
Limassol 2019 166 152 192 291 329 138 177 134 176 144 210 212
2020 98 136 76 23 73 150
Paphos 2019 30 31 28 69 175 69 54 54 34 66 64 69
2020 55 29 26 21 31 18
Totals 2019 409 448 398 628 800 395 476 344 407 487 543 549
2020 417 402 298 92 223 449

During the first half of 2020 the damage to the domestic market due to COVID-19 has caused sales to reduce by 39% compared to the same period last year.

Overseas property sales

Unlike domestic sales, the Government’s decisions to ease COVID-19 lockdown measures and subsidise housing loans appears to have had minimal impact on property sales to the overseas market.

Total sales to the overseas market during June fell by 38% compared to June 2019, with sales falling in all districts.

In percentage terms, sales in Nicosia fell 54%, sales in Paphos fell 39%, sales in Larnaca fell 37%, while sales in Limassol and Famagusta fell 36% and 28% 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 17 11
Famagusta 2019 21 29 29 38 42 18 47 17 24 17 35 38
2020 40 29 25 4 20 13
Larnaca 2019 60 43 71 67 90 60 67 40 35 79 53 74
2020 71 54 50 11 31 38
Limassol 2019 85 104 95 137 217 81 109 62 64 84 86 72
2020 82 89 67 49 39 52
Paphos 2019 157 180 157 155 229 136 176 112 139 126 169 151
2020 113 142 55 51 89 83
Totals 2019 357 386 368 429 623 319 420 244 285 326 364 361
2020 325 337 212 124 196 197

During the first half of 2020, sales to the overseas market have fallen by 44% compared to the same period last year.

Overseas sales to EU citizens

Sales to the EU segment of the overseas market fell 54% compared with June 2019. Although sales in Famagusta rose by one (from 8 to 9), they fell in the remaining four districts.

Paphos reported a fall of 69%, Nicosia 56%, Larnaca 45%, Limassol 42% and Famagusta 13%.

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 10 7
Famagusta 2019 9 6 14 17 10 8 17 14 10 5 9 23
2020 6 14 10 3 4 9
Larnaca 2019 12 12 21 18 20 11 16 13 6 23 14 23
2020 21 13 11 0 3 6
Limassol 2019 16 25 20 21 28 26 27 17 25 30 26 25
2020 28 30 11 12 14 15
Paphos 2019 56 72 61 48 69 59 73 58 61 95 61 72
2020 40 60 25 24 21 18
Totals 2019 107 129 125 123 147 120 146 107 110 133 125 157
2020 104 129 66 42 52 55

During the first half of 2020, sales to the EU segment of the overseas market have fallen by 40% compared to the same period last year.

Overseas sales to non-EU citizens

Sales to the EU segment of the overseas market fell 29% compared to June 2019 with sales falling in all districts.

In percentage terms, sales in Famagusta fell 60% followed by Nicosia (down 50%), Larnaca (down 35%), Limassol (down 33%) and finally Paphos (down 29%).

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 7 4
Famagusta 2019 12 23 15 21 32 10 30 3 14 12 26 15
2020 34 15 15 1 16 4
Larnaca 2019 48 31 50 49 70 49 51 27 29 56 39 51
2020 50 41 39 11 28 32
Limassol 2019 69 79 75 116 189 55 82 45 39 54 60 47
2020 54 59 56 37 25 37
Paphos 2019 101 108 96 107 160 77 103 54 78 61 108 79
2020 73 82 30 27 68 65
Totals 2019 250 257 243 306 476 199 274 137 175 193 239 204
2020 221 208 146 82 144 142

During the first half of 2020, sales to the non-EU segment of the overseas market have fallen by 46% compared to the same period last year.

What prospects for the future?

Credit rating agency Moody’s expects the major sectors of the Cypriot economy to recover within two or three quarters. In a credit rating report published last week, Moody’s says:

“Tourism-related construction activity will likely remain below pre-crisis levels over several quarters, while residential construction will be more resilient. We also expect the performance of the business services sector to be robust. As a result of these trends, we expect a gradual economic recovery in the second half of 2020 and in 2021.”

Analysis of property sales since 2000

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 (June)
1,391 1,881 42.5% 3,272
Totals
71,264 160,155 30.8% 231,419

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).

1 COMMENT

  1. The overseas property sales market will never recover in Cyprus. The state endorsed fraud of thousands of overseas buyers who were duped into buying property on pre mortgaged land is the reason. Until legal deeds are available at the point of sale their property market will continue to deteriorate. and deservedly so.

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