Cyprus real estate sales increased in August compared to the same period last year

The activity in the real estate market increased by 31% in the eight months of 2021 compared to the corresponding period of 2020, with the performance of Nicosia far exceeding even the sales levels of 2019.Compared to the first eight months of 2019, real estate sales recorded a decrease of 14%.

According to the data published by the Department of Lands and Surveys and presented in StatWatch, the number of document stores amounted to a total of 6089 in the period January - August 2021, from 4658 in the corresponding period last year and 7044 in the eight months of 2019.

Part of the increase compared to last year is attributed to the low base due to lockdowns that significantly reduced the economic activity, but also the operation of the land registry.

KPMG economist and partner Tassos Giasemidis tells StockWatch that in recent months there has been an increase in the number of document stores deposited in the Land Registry Department compared to last year.

"It should be noted that the comparison may not be as testable given the restrictive measures that were in place last year, but it is also important to consider the value of the transactions that are being conducted," he said.

He pointed out that "there is mobility, possibly in terms of real estate of lower value, if we compare with previous years, both by locals, taking advantage of the interest rate subsidy program, but also by foreigners."

According to Mr. Giasemidis, there are investments, either in real estate, mainly business, office space, large areas of land, or in companies, such as medical centers and projects related to renewable energy sources.  In addition, banking institutions and management companies are gradually marketing the properties they had recovered, he said.

"The construction and real estate sector is called upon to adapt to the new data, to update its product and to seek new markets, through a well-structured and sustainable business plan," he emphasizes.

Nicosia stands out In terms of real estate sales per province, in the eight months of 2021, 1761 sales documents were submitted in Nicosia from 1238 last year and 1290 in 2019, recording an increase of 42% compared to last year and an increase of 37% compared to 2019. Sales rose in all other provinces compared to 2020.

However, compared to 2019, sales documents decreased in all provinces except Nicosia.

The largest drop of 43% occurred in Paphos, where sales documents filed fell from 1812 to 1039. A decrease of 23% was recorded in Limassol, where eight-month sales fell in 1901 from 2469 in the corresponding period of 2019. In Larnaca, 973 real estate sales took place compared to 1022 in the corresponding period of 2019, recording a decrease of 5%. In Famagusta the reduction amounted to 8%. In 2020, sales documents fell to the lowest point since 2016 at 7968 units compared to 10366 in 2019, recording an annual decrease of 23.1%.