Cyprus Property News

Cyprus property sales up six months in a row

Sales of property in Cyprus have risen for six months in a row, as signs of recovery continue to appear across the island.

Sales of Cypriot property surged 26 per cent in August 2014, according to the Department of Lands and Surveys. The annual leap is welcome news for the island's property market, which has been struggling to recover from the financial crisis for many months. Indeed, signs of recovery have continued to appear across the island in 2014, with prices now increasing steadily for six months in a row.

The recovery is uneven, with sales in Nicosia and Paphos both declining year-on-year by 13.1 per cent and 10.6 per cent respectively. Nonetheless, growth in other regions was convincingly strong, with Limassol leading the increase with a staggering 122.8 per cent rise, followed by Larnaca (35 per cent) and Famagusta (8.7 per cent).

This summer, Limassol enjoyed the opening of the Limassol Marina, an expensive development that was completed despite the economic turbulence of recent years.

Prices, though, continue to decline, with the Central Bank's figures revealing an average fall in apartment values of 2.1 per cent in the second quarter of 2014, followed by house prices (1.8 per cent). Nonetheless, the decline is slowing, notes Cyprus Property News, recording the smallest quarterly dip since March 2014.

The affordability of real estate combined with growing positive sentiment - boosted by the completion of the Marina - has drawn buyers back to the market. Indeed, the Central Bank also reported a 65.1 per cent rise in sales contracts compared to the first quarter of 2014. Crucially, domestic buyers are beginning to step up activity again, with contracts up 80.6 per cent. Foreigners, though, are also showing renewed interest, with transactions in favour of international buyers up 33.2 per cent.

On as well, Cyprus climbed two places in the Top of the Props chart to become the 13th most popular destination in the world, accounting for 1.86 per cent of August's enquiries.

There are still many issues impacting the Cypriot real estate market, from title deeds and other legal disputes to allegations of corruption and the recent passing of a controversial foreclosure bill to secure ongoing bailout support from the EU. Nonetheless, could property sales in September rise for a seventh month in a row?