Sales of cypriot property climb

Photo: Yeliseev

After months of declining interest and plunging prices, there is some good news on the horizon for Cyprus' housing market: sales climbed last month. 344 contracts were registered in March 2014, a 20 per ent rise year-on-year.

70 per cent of contracts were deposited on behalf of domestic buyers, reports Cyprus Property News.

Indeed, local buyers actually increased activity by 13 per cent compared to March 2013, a positive step following weakening economic confidence and dampened demand. Property sales to locals fell 28 per cent in Nicosia, but increased in all other aras of the island, with Limassol's domestic transactions soaring 78 per cent each. Famagusta also enjoyed a climb of 67 per cent in sales.

Overseas sales made up the remaining 30 per cent activity.

Indeed, foreign buyers have been one of the main sources of optimism for the island, which - like many markets struggling to recover in Europe - has relied upon overseas interest to bolster its growth. A residency scheme in exchange for investment was introduced - again, like many markeets in Europe, from Portugal to Greece - in an attempt to attract those from outside of the EU, in particular the Chinese.

Whether the visas are proving popular, or people are merely won over by the low prices, Cyprus' efforts appear to be paying off: overseas property sales improved 7 per cent year-on-year in March 2014. With the exception of Paphos, where sales dipped 8 per cent, every other region on the island enjoyed positive growth. Larnaca led the way, with sales more than doubling (from 7 in March 2013 to 15 last month), while Limassol's international appeal echoed its domestic success, with sales jumping 107 per cent.

The figures mark a steady growth in overseas interest: international sales climbed 18 per cent year-on-year in January 2014, according to the Department of Lands and Surveys, although domestic sales declined.

Indeed, a better impression of the market's condition is given by quarterly data: in the first three months of 2014, overall sales decreased 6 per cent, while domestic sales dipped 11 per cent, indicating that the across-the-board recovery recorded in March has not yet taken hold this year. Overseas sales, though, have risen 7 per cent in the first quarter of 2014, a statistic that will give hope to agents courting international interest in the coming months.