NOVEMBER was the second worst month of the year for overseas property sales with just 103 contracts of sale deposited in favour of overseas buyers at Land Registries throughout Cyprus.
Figures published on Wednesday by the Department of Lands and Surveys reveal the extent of the problem. The number of contracts for the sale of property to foreign buyers during November fell 43% to 103 compared with the 179 contracts in November 2010.
Sales fell in all areas. In Nicosia, just six properties were sold to overseas buyers; a fall of 80% on the thirty sold in November last year. Sales in Larnaca were down 50%, followed by Paphos (-40%), Limassol (-36%) and Famagusta (-4%).
So far this year sales of property to overseas buyers has fallen 13% compared to last – and they have now fallen below the numbers sold in 2009, the year the market collapsed.
It seems that legislation introduced earlier this year in attempts to alleviate problems associated with buying deed-less properties and strengthen the protection afforded to buyers has done little to inspire investor confidence. Also, the delay in agreeing and implementing legislation to temporarily abolish/reduce Property Transfer Fees may have delayed some purchase decisions.