Cyprus Property News magazine for overseas buyers & real estate investors

Wednesday 5th August 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

DistrictYearJanFebMarAprMayJunJulAugSepOctNovDec
Nicosia201912716411513716812115390114163187154
20201781551242983167
Famagusta201932191658452521316331326
20201018166843
Larnaca2019548247738342905367816988
2020766456132871
Limassol2019166152192291329138177134176144210212
202098136762373150
Paphos20193031286917569545434666469
2020552926213118
Totals2019409448398628800395476344407487543549
202041740229892223449

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

DistrictYearJanFebMarAprMayJunJulAugSepOctNovDec
Nicosia2019343016324524211323202126
202019231591711
Famagusta2019212929384218471724173538
202040292542013
Larnaca2019604371679060674035795374
2020715450113138
Limassol20198510495137217811096264848672
2020828967493952
Paphos2019157180157155229136176112139126169151
202011314255518983
Totals2019357386368429623319420244285326364361
2020325337212124196197

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

DistrictYearJanFebMarAprMayJunJulAugSepOctNovDec
Nicosia2019141491920161358101514
202091293107
Famagusta20199614171081714105923
202061410349
Larnaca201912122118201116136231423
2020211311036
Limassol2019162520212826271725302625
2020283011121415
Paphos2019567261486959735861956172
2020406025242118
Totals2019107129125123147120146107110133125157
202010412966425255

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

DistrictYearJanFebMarAprMayJunJulAugSepOctNovDec
Nicosia20192017713258881510612
202010116674
Famagusta201912231521321030314122615
20203415151164
Larnaca2019483150497049512729563951
2020504139112832
Limassol201969797511618955824539546047
2020545956372537
Paphos2019101108961071607710354786110879
2020738230276865
Totals2019250257243306476199274137175193239204
202022120814682144142

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

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 (June)
1,3911,88142.5%3,272
Totals
71,264160,15530.8%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.

Comments are closed.

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