AS we reported last week, the total number of contracts for the purchase of property rose 9 percent in April compared to the same period last year following a 20 percent increase in March.
But now that the Department of Lands and Surveys has published a breakdown of those numbers, last month’s increase was exclusively a result of a 13 percent increase in domestic sales; overseas sales last month fell 30 percent.
Of the 311 contracts deposited at the Land Registries, 229 (74%) were deposited in favour of Cypriot buyers, while 82 (26%) were deposited in favour of overseas buyers.
Domestic property sales
With the exception of Larnaca, where sales fell 20% compared to April last year, sales were up in all other districts.
With the numbers being so small, percentages can be misleading. But for the statisticians amongst you:
Sales in the free areas of Famagusta rose by 475% in April following a ‘disappointing’ performance in January and February, while sales in Nicosia improved 74% over last year. Sales in Paphos and Limassol rose by 48% and 14% respectively.
During the first four months of 2013 a total of 909 domestic sales have been achieved, down just 2% on the 930 sold during the corresponding period last year.
Overseas property sales
In theory you would expect that the overseas market had a better chance of recovery with tax incentives and residency permits for those who qualify – plus the fact that overseas buyers with foreign bank accounts haven’t had those accounts raided.
However, although sales improved in the mainly commercial districts of Nicosia and Limassol by 500% and 157% respectively in April, sales in the tourist hot-spots once favoured by overseas buyers looking for a holiday home fell last month.
Overseas sales in the free areas of Famagusta fell 75% followed by Larnaca, where sales fell 48%. Surprisingly in Paphos, once the favourite location for Britons looking for a holiday home in the sun, sales fell 44%.
During the first four months of 2013 a total of 350 overseas sales have been achieved, down 5% on the 368 sold during the corresponding period last year.
Anecdotal evidence suggests that Britons are continuing to buy. However they are being much more careful in the choice of their purchase and the lawyers they instruct to represent them; most are restricting their search to properties with ‘clean’ Title Deeds.