The Department of Lands and Surveys has published new data on real estate sales in Cyprus in November 2021.
According to official statistics, there has been a positive trend in the country. As it turned out, the demand for housing in Cyprus has increased not only from the local population, but also from EU citizens and citizens of third countries.
The total number of real estate purchase and sale transactions in November 2021 increased by 59% compared to the same month last year. In the first eleven months, home sales in the country increased by 25% compared to 2020.
Sales of real estate in the domestic market
Sales of real estate in the domestic market, which accounted for 60% of total sales in November, increased by 49% compared to November 2020. In total, 688 contracts for the purchase and sale of real estate were concluded with local residents.
If you look at the cities, the leader in the number of transactions was Nicosia (257), followed by Limassol (210), Larnaca (108), Paphos (71) and the controlled areas of Famagusta (42).
In turn, the total number of transactions from January to November 2021 amounted to 5894 (+31%). The growth of interest from local buyers is primarily due to the launch of a program of state subsidies for the purchase of housing on credit, as well as historically low mortgage rates (about 2.5%).
Nevertheless, it is worth considering that the real sales figures in this category include a number of "unsold" agreements, such as loan restructuring, repayment and exchange of debts for assets, agreed between banks and borrowers who have not fulfilled their obligations as part of banks' efforts to reduce their portfolios of non-performing loans. Unfortunately, the Department of Lands and Surveys does not publish these figures separately.
Real estate sales to foreign investors
The total number of real estate sales to non-Cypriots, which accounted for 40% of the total number of sales in November, increased by 77% compared to November 2020. In total, 3169 contracts for the purchase and sale of real estate were concluded with foreigners.
If you look at the cities, the leader in the number of transactions was Limassol (151), followed by Paphos (132), Larnaca (90), Nicosia (45) and the controlled areas of Famagusta (43).
In the first eleven months of 2021, the number of purchase and sale transactions with foreigners increased by 15% compared to the same period last year. It is worth noting that from January to November in Paphos sales decreased by 4%, in other cities of Cyprus there was an increase in sales.
Real estate sales to EU citizens
Real estate sales to EU citizens increased by 90% compared to November 2021 and by 89% compared to the same November 2019.
The total number of purchase and sale agreements was 231:
- 30 deals were made in Nicosia,
- 22 - controlled areas of Famagusta,
- 37 - Larnaca,
- 85 - Limassol,
- 62 - Pathos.
Year-on-year sales to EU citizens increased by 53%. The total number of transactions from January to November 2021 was 1,571. At the same time, home sales increased in all regions of the country.
Real estate sales to third-country nationals
The total number of housing sales to citizens of non-EU countries increased by 76% in November 2021 compared to November 2020. A total of 225 housing units were sold:
- 15 – in Nicosia,
- 53 - in Larnaca,
- 21 - in the controlled areas of Famagusta,
- 89 - in Limassol,
- 47 – in Paphos.
Sales in November 2021 increased in all cities of Cyprus: in Nicosia (+150%), Larnaca (+152%), Limassol (+29%), in the controlled areas of Famagusta (+133%), Paphos (+47%).
In turn, the total number of transactions with third-country nationals from January to November 2021 amounted to 1,598. Compared to the same period in 2020, sales increased by 51%.
Forecast for the end of the year
Statistics published by the Department of Lands and Surveys show that the number of contracts for the sale of real estate reached 9,063 during the first 11 months of the year, compared with 7,231 for the same period in 2020 and 9,456 in 2019.
Compared to the pre-tax period from January to November 2019, sales this year decreased by 4%. It is likely that the total number of sales by the end of this year may approach the figures of 2019, when 10366 purchase and sale transactions were concluded.
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