On Monday, April 15, the Cyprus Real Estate Agents Registration Board said that in the first quarter of 2024, the number of new home sales on the island has decreased.
Among the main reasons for this trend are inflationary pressures, high interest rates and rising prices, which have a direct impact on citizens' incomes.
In particular, according to comparative data on real estate sales, a total of 4,543 property transfers were recorded in Cyprus between January and March for a total value of €955.8 million. A total of 3,597 sales documents were deposited against 3,574 a year earlier.
On a quarter-on-quarter basis, the volume of transfers fell by 18.6% and their value by 22.9%. In addition, compared to the fourth quarter of 2023, the volume of sales documents filed in the first quarter of 2024 was down 11.1%.
Figures by region:
- In Nicosia, a total of 1,245 property transfers were registered for a total value of €198.4 million.
- Limassol trails behind with a total of 1,202 sales worth €323.8m, well above the total value registered in Nicosia.
- In Paphos, 993 properties were sold for a total value of €323.8 million.
- In Larnaca, 860 sales were recorded for a total value of €148.4 million.
- Finally, in the vacant areas of Famagusta there were 243 transactions totaling €40.8 million.
The head of the Real Estate Agents Registration Board, Marinos Kinegirou, said that the effects of the geopolitical unrest on the Cyprus market are obvious.
The real estate sector functions as a mirror of the Cypriot economy as it is one of its most important pillars. The picture for the first quarter of 2024 compared to the previous quarter is very worrying and should alert everyone. Unfortunately, our predictions are beginning to be confirmed and it is already necessary to take action both on the part of property owners and the state to improve the situation, - said Kinegirou.
It would be recalled that the Real Estate Registration Board had earlier granted access to the Department of Lands and Survey's comparative home sales to all licensed agents in the country as part of its ongoing efforts to increase transparency in transactions. The Council said it will analyse the sector's data as it becomes available on a quarterly basis so that stakeholders have constant information on developments in the Cyprus real estate market.
It is worth noting that not all real estate market experts share the opinion of the Cyprus Real Estate Agents Registration Board.
In fact, one should not be too worried. In the first quarter of the new year compared to the previous quarter there is usually always a decline in sales. This is quite normal for Cyprus. This is facilitated by the New Year vacations, Christmas vacations, long weekends. In fact, part of the transactions have been postponed to the second quarter of 2024. There are no significant changes in the market, and even less interest from buyers, - commented the specialists of DOM Real estate agency.