FIGURES released on Friday by the Department of Lands and Surveys show that the number of properties being sold in Cyprus is continuing to fall despite tax incentives introduced by the government late last year.
A total of 563 contracts for the sale of property were deposited at Land Registries across Cyprus in March compared with the 625 deposited in March 2011; a fall of 9.9% – and a drop of more than 70% on the 1,903 contracts deposited in March during the boom year of 2007.
In January sales climbed 54%, hitting an 18-month high, as people waiting to deposit their contracts of sale until after tax reductions had been introduced by the government. But with the exception of January, sales have continued to slide following a brief recovery during the first half of 2010.
Uncertainty in the market, liquidity problems and record levels of unemployment continue to push sales down. Local commentators believe that crunch time will come in July, when the bank’s recapitalisation projects will be completed. Until then the market will progressively slow down and there will be very little activity.
