Recovery of Overseas Property Sales in Cyprus
2020 has proved to be a difficult year for the global property market as a result of the COVID-19 pandemic, particularly when it comes to overseas purchases. However, many countries are now beginning to see an upsurge in property demand for Q4, including interest from foreign buyers.
For Cyprus, overseas property sales have seen a significant reduction this year. According to cyprus-property-buyers.com, overseas sales have mostly fallen month-on-month since June 2019.
During August this year, foreign buyers accounted for 35% of total sales during that month, down 18% from August 2019.
However, new property data has revealed that overseas property sales in Cyprus seem to be showing signs of recovery.
Breakdown of overseas property sales in Cyprus
Overall, overseas property purchases for September were down 8% compared to September 2019, accounting for 33% of total property sales. Whilst this may sound disheartening, if we look at the data on a granular scale, there were three districts in Cyprus which saw a rise in purchases from foreign buyers.
Limassol saw an increase in property sales by 25%, 21% in Famagusta and 20% in Larnaca.
Paphos, which is the most popular area for overseas property purchases in Cyprus, saw a fall of 37%.
Rise in sales from EU countries
Data from the Department of Lands and Surveys have revealed that overseas property sales from the EU are on the rise, whilst sales from non-EU countries are on the decline.
Overseas property sales from EU nationals accounted for 16% of total sales in September, which is an 11% rise in comparison to September 2019.
Whilst sales to EU nationals fell in Famagusta and Paphos, there was a rise in Larnaca, Nicosia and Limassol.
With regard to non-EU nationals, September this year revealed a fall of 21% compared with September 2019. There was a significant rise in sales in Famagusta of 64%, however, this progress was overshadowed by a fall in sales in Nicosia by 53% and 50% in Paphos.
The Cyprus property market overall
Whilst the progress of overseas property sales hang in the balance, the Cyprus property market overall seems to be on the up. Cyprus property sales overall for September have managed to see a 14% increase in comparison to September 2019.
September this year saw a total of 768 contracts submitted across Cyprus’ Land registry offices, compared to 692 in the same month the previous year.
Sales in Famagusta rose by 48%, Nicosia by 42%, Larnaca by 15% and Limassol by 5%.
The future of the Cyprus property market
Whilst property sales in Cyprus seem to be heading in the right direction, it is currently not possible to say whether the progress will be sustainable. The progress follows many months of struggling sales and it is uncertain what the future holds for the Cyprus property market due to the ongoing effects of COVID-19. Brexit uncertainties will undoubtedly place further pressure on property sales from foreign buyers as the transition period draws closer.