ACCORDING to Land Registry figures published earlier today, the number of contracts deposited at Land Registries throughout Cyprus in July for the purchase of property fell by almost a quarter to 605 from the 797 deposited in the same period last year. July was the thirteenth consecutive month during which sales have declined.
Compared with last year, total sales this year have fallen 19.7% to 4,182 from the 5,205 sold during the same period of 2010. Sales are now down by almost 7% on those of 2009, the year the market crashed, when 4,493 properties were sold over the first seven months of the year.
During July, sales fell in all areas. Worst hit was Paphos, where sales tumbled 39.3% compared with July last year. Paphos was followed by Nicosia (-33.7%), Limassol (-18.4%), Famagusta (-8.3%) and Larnaca (-7.0%).
The Federation of the Building Contractors Associations of Cyprus (OSEOK) announced last Friday that turnover is declining, contracting companies are terminating or suspending their operations and that unemployment in the sector is increasing dramatically. It expressed its concerns that if no immediate measures are taken to support the construction sector, the impact on the sector and the economy will be “tragic with dimensions that will have huge economic and social costs”.
Overseas sales
PROPERTY sales to foreign buyers also fell in July with a total of 122 contacts in favour of foreigners being deposited at Land Registries compared with 167 in July 2010; a fall of 26.9%.
Although property sales were up 56.3% in Larnaca, they fell in all other areas. In Famagusta, sales more than halved, falling 52.4% compared with July last year. Famagusta was followed by Paphos, where sales fell by 37.0%, Nicosia (-36.7%), and finally Limassol (-12.1%).
During the first five months of the year overseas property sales were up 17% compared to last year. However, the sharp decline in sales during June and July has resulted in the year-to-date improvement in sales falling to a mere 0.3%.