For the sixth consecutive month property sales in Cyprus reached a 14 year high in June as measured by the number of contracts deposited at Land Registry offices across the Republic.
Property sales refer to sales of domestic dwellings, retail premises, offices, warehouses and land (fields and plots.) The statistics provided by the Department of Lands and Survey do not differentiate between sales of new and sales of resale property.
There are a number of possible reasons why sales are so strong:
- People scrambling to buy property before the surging costs of construction materials are reflected in prices.
- Increasing the VAT rate levied on sales of new property, which is currently under discussion in Parliament.
- More stringent criteria for UK and other non-EU citizens wishing to buy a home and retire to Cyprus. Assuming the changes under discussion are implemented, non-EU citizens will need to buy property costing a minimum of €250,000 – and their annual income will have to be at least €40,000 plus €10,000 for each additional family member.
- The lifting of COVID restrictions encouraging more foreign visitors to Cyprus and Cypriots with more freedom looking for homes.
June property sales
During June, the number of sales reached 1,173; an increase of 27% compared to June 2021. with numbers rising in all districts with the exception of Famagusta.
The highest number of sales was recorded in Limassol, followed by Nicosia, Larnaca, Paphos and Famagusta.
Sales during the first half of 2022 reached 6,263; a 39% increase on the 4,501 achieved in the same period of 2021 and the highest number on record since 2008.
Market segment analyses
Domestic real estate sales
Domestic real estate sales in June, as measured by the number of sale contracts deposited at Land Registry offices, rose 21% compared to June 2021. The only district recording a fall in sales was Paphos.
Sales during the first half of 2022 sales reached 3,635, a 19% increase on the 3,062 achieved during the same period last year.
(Domestic sales figures include an unreported number of ‘non-sale’ agreements such as loan restructurings, recoveries and debt-to-asset swaps agreed between the banks and defaulting borrowers.)
Foreign real estate sales
Sales to foreigners (non-Cypriots) were up 38% compared to June 2021 with sales rising in all districts with the exception of Famagusta, where sales fell by 44% and Nicosia, where sales remained steady.
Paphos achieved the greatest number of sales, followed by Limassol, Larnaca, Famagusta and Nicosia.
Foreign real estate sales during the first half of 2022 reached 1,2,628, an 83% increase on the 1,439 achieved in the same period last year.
It is anticipated that the government’s headquartering initiative will further encourage real estate sales to foreign companies and their employees, particularly from Ukraine and Russia.
Foreign sales to EU nationals
Sales to EU nationals rose 43% compared to June 2021. Although sales in Nicosia and Larnaca fell, these were outweighed by increases in Limassol, Paphos and Famagusta.
Foreign real estate sales to EU nationals during the first half of 2022 reached 1,253; an 84% increase on the 681 achieved in the same period last year.
Foreign sales to non-EU nationals
Sales to non-EU Nationals rose by 33% compared to June 2021. Although sales in Famagusta fell, these were outweighed by increases in Limassol, Paphos and Nicosia and Larnaca.
The highest number of sales were recorded in Limassol, followed by Larnaca, Paphos, Nicosia and Famagusta.
Foreign sales to non-EU nationals during the first half of 2022 reached 1,375; an 81% increase on the 758 achieved in the same period last year.
