According to the latest data on home sales from January to November 2021, Cyprus property market is beginning to gradually recover.
During 11 months of 2021, the volume of investments in residential real estate increased by 3.4% compared to the same period of 2019. At the same time, the number of transactions decreased by 4.2%. The number of mortgage loans decreased by 4.4%, but their volume increased by 82.2% mainly because of the expensive real estate in Limassol.
The demand for secondary housing has increased significantly. From January to November 2021, there were 14,228 transactions in the secondary market, which is 3.4% more than in 2019 and 26.5% more than in 2020.
Detailed analysis of the cities of Cyprus:
In the capital of Cyprus, most indicators have changed in a positive direction. The number of all transactions (+27%), the number of sale transactions (+38%) and mortgage loans increased compared to the same period of 2019. Only the volume of mortgage loans decreased by 15%.
There was a similar picture in Limassol. The number of all transactions increased by 2% compared to 2019 and by 30% compared to 2020. The number of sale transactions increased by 28% compared to 2020, but decreased by 11% compared to 2019. The amount of mortgage loans issued for real estate in the city has increased by a record 300%. If in 2019 or 2020 the volume of mortgage loans in Limassol was 900 million euros, then this year it increased to 3.2 billion euros.
In Paphos in 2021, the market did not recover so fast. Most indicators were positive compared to 2020, but much worse than in 2019. The number of all transactions reduced by 20%, sale transactions - by 35%, and the number of mortgage loans - by 15% compared to 2019.
An ambiguous picture has also formed in Larnaca. From January to November 2021, the number of all transactions decreased by 8% compared to January-November 2019. But the number of sale transactions increased by 5%. The number of mortgage loans decreased by 11%, but their volume increased by 0.1%.
Controlled areas of Famagusta
Finally, the real estate market in the free areas of Famagusta mostly moved along a positive trajectory. Thus, the number of transactions increased by 12%, transactions - by 4%, and mortgage loans - by 4% compared to 2019.
We must admit that 2021 was the year of anomalies in the Cyprus real estate market caused by the pandemic in 2020. A significant number of transactions have been postponed due to the uncertainty. At the same time, the general trend towards the growth of mortgage loans proves that the plan of government subsidization of interest rates has had a positive impact on the real estate sector as a whole. In 2022, the situation with COVID will be crucial both for the real estate sector and for the country's economy as a whole. However, there is no doubt that interest in acquiring secondary facilities, especially assets of banks and management companies, will grow.
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