Disappointing start for property sales

THE FIRST month of the new decade saw Cyprus property sales fall by 3 percent compared to January 2019 according to official figure from the Department of Lands and Surveys.

Since their peak in May 2019, property sales have been like riding a roller-coaster; up for a month or two and then down and up again. It’s difficult to predict how the situation will change in the coming year, but we know that the Cyprus Land and Building Developers Association (LBDA) is concerned.

LBDA representatives met with Central Bank officials last month and raised the issue of banks not providing loans for first-time home buyers as most of their applications are rejected during the  screening process.

The banks are naturally fearful of giving out loans as it may result a repeat of events that led to the 2012 financial crisis. Remember the PIMCO due diligence report of the banking system, which laid the system’s ‘idiosyncrasies’ bare?

The government’s new housing policy is offering incentives to developers to offer cost-price homes for low-income groups, but developers have shown little interest in the scheme.

Property sales January 2020

According to official figures 742 contracts for the purchase of property were deposited at Land Registry offices during January 2020; a fall of 3% compared to the 766 deposited in January 2019.

Although sales in Larnaca and Nicosia rose by 29% and 22%, these were wiped out by falls of 28% in Limassol, 10% in Paphos and 6% in Famagusta.

Total Property Sale Contracts – 2019/2020 Comparison