JANUARY 2011 saw property sales in Cyprus falling to a 2 year low. Industry watchers expect that the lack of sales will lead to further price reductions while developers believe that the negative climate will persist if no support measures are taken.
Demand has fallen in all of the seaside towns, while sales in Nicosia appear to be stabilizing.
According to the Land Registry, the number of contracts of sale deposited at Land Registries throughout Cyprus during January was 522 compared with 570 in January 2010; a fall of 9%.
Sales fell in all the seaside towns: Larnaca (-21%), Limassol (-12%), Paphos (-11%) and Famagusta (-9%).
Nicosia, which constitutes the largest part of the total demand, saw property sales increase by 3% to 174 from 169 in January 2010.
In a statement to StockWatch, property valuator, Polys Kourousides said that sales will continue to drop in the next few months in all cities. “Nicosia will show stabilization trends”. Mr Kourousides believes that prices will fall slightly.
Chairman of the Pancyprian Association of Land Developers, Lakis Tofarides, said that “The market reacts as expected. As long as no measures are taken, the problems will not be solved.”
Overseas sales
Somewhat unexpectedly, property sales to foreign buyers improved in January with the total number of contracts of sale deposited throughout the month up 79% compared to January 2010.
Demand rose in all areas: Larnaca (up 229%), Famagusta (up 158%), Paphos (up 43%), Limassol (up 32%) and Nicosia (up 22%).
