Property Sales Surge by 54% in Cyprus in 2016

Property sales recorded a large increase in February 2016, boosted by low interest rates and by base effects.

According to official data by the land registry, deeds of sale submitted to the land registry in February 2016 reached 501, the highest level since May 2014, from 325 in February 2015. This corresponds to an increase of 54%.

Property sales rose by 2% in January.

Limassol recorded the largest increase (+85%) in property sales in February, followed by Nicosia (+76%) and Larnaca (+52%).

In the period until the end of January the total number of property sales recorded an increase of 28% reaching 828 against 646 in the corresponding period last year.

January – February 2016 sales also exceeded the number of sales recorded in the corresponding period of 2013, just before the ‘haircut’ of uninsured depositors.

Nicosia sales recorded the largest increase (+46%) in the period of January – February, reaching 133 from 91 last year.

In Limassol, deeds of sale reached 271 from 192, recording an increase of 41%, while in Famagusta there was a 33% rise.

In Larnaca property sales increased by 16% to 186 from 161 in the period of January – February 2015.

Pafos recorded an increase of 14%.

Cyprus’ association of developers claims that there is a new momentum in the real estate market, as foreign demand has increased following the improvements announced by the ministry of interior regarding the criteria for residence permits.

At the same time developers expect a significant rise in domestic demand, after the simplification of procedures for granting loans and the stabilization of prices at more attractive levels.

The improvement in the real estate market is also recognized by the Central Bank.

In the latest issue of the property price index, the CB stressed that economic recovery, the improvement of financial conditions and reduced lending rates are expected to have a positive effect on demand and on property prices.

According to CB data, property prices fell by 3,7% in the third quarter of 2015 against a 5% reduction in the second quarter of 2015.

Article Source: Stockwatch