For the seventh consecutive month property sales in Cyprus reached a 14 year high in July 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.
Housing loans accounted for the lions share of borrowings between January and June accounting for 40% of all new loans. However, housing loans fell from €97.5 million in May to €93.8 million in June. There’s a possibility that the fall, assuming it continues, will be reflected in the number property sales in the coming months.
Also inflation surged to 10.9% in July, the highest level since August 1981 which, together with rising price of building materials (up 19.42% in June on an annual basis) will increase pressure on sales of new property.
However, 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.
And attempts by opposition MPs to garner support for their party candidates in next year’s presidential election by extending the freeze on property repossessions until the end of October have failed. When the freeze ends banks in Cyprus can sell mortgaged properties via auctions and e-auctions after 120 days of arrears.
(Homeowners with primary residence with values up to €350,000, businesses with a turnover under €750,000 and land with a value of €100,000 or less who are currently protected under the freeze.)
July property sales
During July, the number of sales reached 1,218; an increase of 41% 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 Paphos, Nicosia, Larnaca, and Famagusta.
Market segment analyses
Domestic real estate sales
Domestic real estate sales in July, as measured by the number of sale contracts deposited at Land Registry offices, rose 28% compared to July 2021. The only district recording a fall in sales was Famagusta.
Sales during the first seven months of 2022 sales reached 4,338, a 20% increase on the 3,612 achieved during the same period last year.
Foreign real estate sales
Sales to foreigners (non-Cypriots) were up 64% compared to July 2021 with sales rising in all districts with the exception of Famagusta, where sales fell by 4%.
Paphos and Limassol achieved the greatest number of sales (171), followed by Larnaca, Nicosia and Famagusta.
Foreign real estate sales during the first seven months of 2022 reached 3,143, a 79% increase on the 1,753 achieved in the same period last year.
Foreign sales to EU nationals
Sales to EU nationals rose 31% compared to July 2021. Although sales in Famagusta fell, these were outweighed by increases in the four remaining districts.
Foreign real estate sales to EU nationals during the first seven months of 2022 reached 1,476; a 73% increase on the 851 achieved in the same period last year.
Foreign sales to non-EU nationals
Sales to non-EU Nationals rose by 103% compared to July 2021, with sales rising in all districts.
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 seven months of 2022 reached 1,667; an 85% increase on the 902 achieved in the same period last year.