Cyprus property sales up five months in a row
Photo: CyprusPictures
Cyprus has had a long, slow journey from the low point of the financial crisis, but 2014 has seen signs of recovery appear across the island.
Prices for house and flats dipped 1.4 per cent and 2.6 per cent respectively in the first quarter of the year, according to the Royal Institution of Chartered Surveyors. Since then, though, the market has enjoyed a burst of interest, as buyers were attracted by the affordable values.
According to the Land Registry, transactions registered in May soared 157 per cent year-on-year, with overseas demand particularly notable, pushing up sales 115 per cent.
Indeed, during the first five months of 2014, sales registered with the Registry increased 20 per cent, a rise led by Nicosia (51 per cent) and Famagusta (53 per cent), followed by Larnaca (10 per cent). Paphos, though, saw sales dip 12 per cent, suggesting that the rebound's momentum was yet to build.
June marked a big step for the country, as the Limassol Marina finally opened. The expensive development, which was completed despite the economic turbulence of recent years, was hailed as a success by agents and authorities alike, hoping that it would boost both confidence in and demand for the country's real estate.
Writing in The Financial Mirror, Alecos Vilanos of Vilanos Properties highlighted Limassol as leading the Cypriot property "boom", saying that it is expected to attract a "significant number of local and foreign investors".
"There is optimism around of full recovery of the property sector in Cyprus," he adds, noting the positive impact the Golden Visa scheme is forecast to have. "In the years to come, incentives provided by the government to obtain a permanent residence permit or for issuing passports to non-EU nationals along with the purchase of property or investments, like the urban area for large development projects, are expected to increase the demand for real estate and investment market for offices, homes and other facilities."
In June, sales continued to climb, with Limassol leading domestic activity once more with a rise of 137 per cent, followed by Larnaca (110 per cent) and Nicosia (19 per cent). Transactions fell, though, in Famagusta and Paphos. For international buyers, on the other hand, Paphos enjoyed the highest rise in sales, ahead of Larnaca (80 per cent) and Limassol (7 per cent).
Property sales in July marked the fifth month of rises in a row, according to the Department of Lands and Surveys, cementing the country's improving momentum.
Nonetheless, the market appears to be slowing down, with sales up by just 15 per cent. Activity continues to be fuelled by domestic buyers (77 per cent) more than overseas buyers (23 per cent). Indeed, domestic sales in July increased by 26 per cent annually, notes Cyprus Property News, but only three of the districts recorded growth: Paphos, Larnaca and Limassol
Overseas transactions, meanwhile, fell 11 per cent year-on-year, with deals dropping 73 per cent in Nicosia and 55 per cent in Paphos. Sales in Limassol stayed the same, while Famagusta and Larnaca enjoyed a rise of 600 per cent and 46 per cent respectively.
Given Famagusta's increase compares to just 3 transactions in July 2013, the relatively low base of the recovery may make the rebound seem stronger than it really is. Nonetheless, the picture is more positive than it once was. After the annual growth reported in the first five months of the year, the first seven months of 2014 have seen sales to overseas buyers rise 15 per cent annually. Cyprus has come a long way from the financial crisis. Its journey continues.