17% jump in real estate sales
Sales documents filed in the land registry show there is a significant increase in real estate in the two months of January – February2023, with the sector seemingly receiving a boost from relocating companies and families to Cyprus.
According to the data also presented in StockWatch, the filed sales documents of January – February 2023, compared to 1907 in the same period in 2022, amounted to 2022 thus recording an annual increase of 17%.
Compared to 2019, real estate sales show an increase of 39%.
Economist Tasos Yasemidis has informed StockWatch that the number of filed sales documents in the Land Registry Department demonstrates the dynamics of the sector.
He emphasised that the value of the sales documents should also be taken into consideration, as the sector adapted to the new data demand derived from the domestic market, the people choosing to relocate in Cyprus with their families, but also from markets such as Israel, the Nordic and Arab Countries, the United Kingdom.
“Increased mobility in the market, fueled by the transfer of corporate headquarters to Cyprus, has led to the rise of selling prices and rents. He also emphasised that properties mainly in Limassol, Paphos and Larnaca are in particular demand in the recent months “.
Mr Yasemidis added that increased construction costs may have led to the suspension and redesign of some projects, increasing secondary market sales.
According to Mr Yasemidis, there are serious outstanding issues inthe sector, “such as the amendment of the law on the reduced VAT rate, which must be done in such a way as to achieve the objectives of the amendment without affecting the market”.
He also referred to the need of simplifying the procedures related to purchasing and selling real estate and reinforcing e-governance and reforms by licensing new projects.