Loan Restructuring in Full Swing in Cyprus

Реструктуризация кредитов на Кипре идет полным ходом
22 November 2021 DOM LiVE
383

According to the information of the Department of Lands, the number of real estate sales in Cyprus from January to September 2021 was 11,491.

At the same time, 875 transactions (7.6%) were related to the restructuring of loans. Compared to last year, the number of restructurings in Cyprus decreased by 27.3%.

If you look at the cities, the largest number of restructurings occurred in Nicosia – 329 or 38% of total sales. It is followed by Limassol – 26%, Paphos and Larnaca - 16% each district. The smallest number of restructurings was registered in the controlled areas of Famagusta - 37 or 4%. In value terms, the nine months of restructuring amounted to 159.1 million euros, which is 37.8% less than in the same period last year. At the same time, the highest percentage of such transactions was recorded in Nicosia – 40%, followed by Limassol with 34% and so on.

Most of the expensive transactions were made in the period from June to September – their total amount exceeded 99 million euros. 60 million euros fell on June and September. As for the type of real estate, continuing the trend of previous years, the largest percentage of restructurings, both in number (461) and in value (49 million euros) concerned fields. This is followed by plots (145 in the amount of 43 million euros) and houses (109 in the amount of 27 million euros).

From January to September 2021, 11,289 new mortgage loans totaling 2.2 billion euros were issued in Cyprus. Compared to the same period last year, mortgage loans increased by 14.2% in number and 9.3% in value. The largest year-on-year growth was recorded in the period March-May and especially in April, when the number of loans increased by 242.2%, and their amount - by 183.6%. The largest annual reductions were recorded in July – by 24.5% in quantity and in August – by 43.6% in value.

If you look in detail by city:

  1. During the reporting period, 329 restructurings were carried out in Nicosia for a total amount of about 64 million euros. In terms of quantity and value, they decreased by 32.9% and 55.3% compared to the same period last year. The most restructurings concerned fields (45.3%), followed by plots with 20.4%. The restructuring of apartments accounted for 14% of the total, and houses - 10%. Mortgage loans over the same period in the district of Nicosia increased by 24.2% in number and 2.4% in value compared to the same period last year. Strong upward trends in March - May left no room for the impact on the overall picture of the reporting period of individual reductions observed in some months.

  2. During the first nine months of 2021, a total of 227 loan restructurings in the amount of 53 million euros were registered in Limassol. Their number and cost decreased by 17.7% and 8% compared to the same period last year. Most of the restructurings were related to fields - 62.5% and land plots - 15.4%. The housing stock accounted for 11.9%. As for the value, the highest figure was recorded in the category of land plots – 22.1 million euros, or 41.7% of the total value, followed by fields – 19.7 million euros or 37.1% and houses - 6.2 million euros, or 11.7%. We must admit that despite the negative economic forecasts and uncertainty due to the sudden termination of the Citizenship by Investment program, the number of mortgage loans in Limassol has increased both in quantity and in value. The total increase in the number of mortgage loans amounted to 5.9%, and the cost - 16.6%.

  1. From January to September 2021, 143 restructurings totaling 16.2 million euros were registered in Larnaca. In terms of quantity and cost, they decreased by 17.3% and 26.2% compared to the same period last year. By property categories, the majority of restructurings both in quantity (66 or 46.1%) and in value (5 million euros or 30.9%) concerned fields, followed by categories: plots and houses. Mortgage loans in the Larnaca area increased by about 13.9% in number and 9.7% in value year-on-year. Although the year began with negative omens, a significant increase was recorded in the four months from March to June.

  2. In the controlled areas of Famagusta, the smallest number of restructurings was registered - 37 in the amount of 5.1 million euros. In terms of quantity and cost, they decreased by 57% and 41.8%, respectively, compared to the same period last year. Of these, 73% concerned fields. In turn, in the free areas of Famagusta, the fewest mortgage loans were allocated both in terms of quantity (686) and cost (253.4 million euros). Nevertheless, the overall picture is encouraging, as the annual growth was 18.7% in quantity and 91.2% in value. As in most districts, in Famagusta, the initial negative picture changed during the first two months of the year, showing strong growth trends to 352.2% in the number and 414.6% in the cost of mortgages in April.

  3. Finally, 139 restructurings totaling 20.7 million euros were registered in Paphos. In terms of quantity and value, they decreased by 22.3% and 14.7% compared to the same period last year. In terms of population, the district took the penultimate place after the controlled areas of Famagusta with 55.4% of the restructuring of fields and about 18% of houses. In value terms, the largest volume of restructured real estate – 8.12 million euros or 39.2%, fell on fields, followed by houses (7.3 million euros or 35.3%). The difficulties of last year also negatively affected the cost of registered mortgage loans in the reporting period. The growth was only 1.44% compared to the same period last year. While the cost of mortgage loans decreased by 26.5%. The downward trend in the cost of mortgage loans can be traced throughout the reporting period, as positive signs were recorded only in April (58.34%), June (119.8%) and July (18.5%).

Реструктуризация кредитов на Кипре идет полным ходом

Have you decided to buy an apartment or a house in Cyprus? Contact DOM! The website has a huge selection of real estate - residential and commercial. Experienced agency specialists will be happy to help you make the right choice.
Source: philenews.com
Photos: pixabay.com
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