According to a recently published report by Danos & Associates international property consultants & valuers, in December 2020, the country recorded a 19% decrease in home sales (compared with the last month of 2019).
The closure of the Citizenship by Investment program in November last year had a significant impact on Cyprus property sales, as well as its prices. Moreover, according to experts, this trend should be expected to continue.
So in the last month of 2020, 737 contracts of purchase and sale of housing objects were signed in Cyprus (910 in December 2019).
Sales fell across all segments, but the hardest reduction was in the coastal areas, which had previously been popular with overseas buyers for many years. Sales decreased by 33% in Paphos in December 2020, by 24% in Limassol, by 19% in Larnaca, and by 2% in Famagusta and Nicosia.
The total number of property sales in Cyprus in 2020 decreased by 23% during the last year.
Nicosia was the only city where the number of concluded purchase and sale transactions showed a positive trend (+ 3%). According to experts, this is due to stable domestic demand. Home sales in Paphos, in turn, decreased by 41%, by 29% in Limassol, by 17% in Larnaca, by 11% in Famagusta. The largest number of real estate units sold in 2020 was recorded in Limassol: 2480. It is followed by Nicosia - 2054, Paphos - 1554, Larnaca - 1296 and Famagusta - 584.
As for sales to foreigners, 2,985 purchase and sale transactions were concluded with them in 2020.
1832 transactions were done by non EU citizens and 1153 - by EU citizens. It is 37% of total nationwide sales in 2020. It is worth noting that in 2020 Paphos retained its leading position in home sales to foreign buyers, as the city has 36% (1,069) of the total number of transactions concluded with foreigners. Of these, 601 transactions were made by non EU citizens and 468 by Europeans. It is followed by: Limassol - 29% (864 contracts), Larnaca - 17.5% (522 contracts), Famagusta - 10% (302 contracts), Nicosia - 7.6% (228 contracts).
In addition, according to the Central Bank of Cyprus, in the third quarter of 2020, the country's property price index recorded its first slight quarterly decline after 16 quarters of increase.
In other words, the decline in home prices in the third quarter of 2020 was 0.3%, compared with a 0.9% increase in the second quarter of 2020. In particular, quarterly reductions were recorded in Paphos (-1.8%), Nicosia (-0.5%), Larnaca (-0.4%) and Famagusta (-0.4%). Limassol was the only region in which quarterly growth was 0.2%.
The property price index showed moderate growth in the 1.2% range during the year, compared with a 2.2% increase in the previous quarter. This trend was recorded in all cities in Cyprus, with the exception of Paphos, where there was an annual decline of -1.6%. Limassol recorded an annualized growth of 1.9%, Larnaca had 1.6%, Nicosia 1.1% and Famagusta 0.4%.