Property sales in Cyprus fell by 10% in August 2019 compared with the corresponding month last year, according to the statistics published by the Cyprus Department of Land and Surveys. A decrease in the number of sales contracts is observed in the domestic and non-European market segments, while sales to EU citizens increased by 3%.
An even greater reduction in the number of transactions was observed in June it constituted 17%, but July was stable compared to last year’s figures. The experts of Cyprus Sotheby’s International Realty believe that a decrease in real estate sales this summer was due to the introduction of stricter criteria in the Cyprus investment program.
As of May 15, the duration of investment was increased from three to five years, and the minimum investment amount increased from 2 million to 2.15 million euros, due to the introduction of donation component of €150 000. Therefore, those who wanted to proceed with the citizenship application under original, more favorable criteria, completed their real estate investment to before the date. Cyprus Sotheby’s International Realty provided expert support in this matter and even set a record for closing a transaction - 3 days! We found a high ROI property, negotiated the best price for our client with the developer, signed the sales agreement, made the payment transaction and applied for European citizenship for the whole family! Market professionals will confirm: usually it take from 1 to 2 months.
Changing conditions for participation in the investment program spurred the demand, which declined in the summer. In August 2019 a total of 588 contracts were deposited for the sale of commercial and residential real estate, as well as land for construction, while in the corresponding month of 2018 this number was 653.
The situation differs in different areas of Cyprus. In Nicosia and Pafos, for instance, property sales grew in August by 13% and 6%, respectively, while Famagusta recorded a reduction of such transactions by 40%, in Limassol - by 25%, in Larnaca - by 1%. Out of all the sales contracts deposited in the Land registry 59% were made by the residents of the republic while 41% of contracts were executed by citizens of other countries.
If we talk about the situation in Cyprus real estate as a whole for the period from January to August, then the industry still shows a good growth - by 17% compared to last year’s figures. Paphos and Nicosia appear to be the market leaders - sales there rose by 27% and 23% respectively. An increase in the number of transactions was also recorded in Larnaca, Limassol and Famagusta.
Thus, despite the decline in demand in the summer, at the beginning of September we see a return of interest towards real estate, which means that Cyprus is still one of the most investment-oriented destinations. We expect that by the end of 2019 the number of transactions in Cyprus will break the record.
Properties, offered by Cyprus Sotheby’s International Realty really stand out in the Cyprus market, as liquidity and profitability of real estate are our priorities. We offer real estate with a yield of 4% to 18% per annum, as well as comprehensive support at all stages - from collecting documents to obtaining Cyprus passport, from assisting in property management or its subsequent sale to safeguarding return on investment with income after the 5 year period for property holding expires.