« Back to News

Weaker euro has boosted real estate sales

It is worth reminding that over a considerable period of time, sales of immovable property have been on the rise. This year, they rose by 10% during the first month and by 5% during the second one compared to the numbers sold in January and February last year.

This uphill trend in property sales can be partially explained by the fact that immovable property for sale in Cyprus has become more affordable for Britons due to the current strength of the pound against the euro.

Over the past six months, the British market has started moving again. Houses and apartments for sale in the Paphos region (mainly in coastal areas) proved especially attractive to home buyers from the UK.

The current uphill trend in real estate sales in Cyprus can also be attributed to a high level of overseas demand which had been boosted by the implementation of the new government`s immigration schemes. Along with other Third Country Nationals, Russian and Chinese property buyers are tempted by the possibility of obtaining permanent residency in Cyprusor Cypriot citizenship in exchange for investment in the island`s economy.

The majority of local real estate experts expect that property sales will continue their upward rise into the foreseeable future.

February property sales-2015/2014 Comparison

Nicosia Famagusta Larnaca Limassol Paphos The number of sales
Feb 2014        69        18        50       95       79    311
Feb 2015        45        27        71       97       85    325

As the table above shows, almost all districts performed well in February. Only in Nicosia, the number of property transactions fell. It dropped by 35% compared to February 2014. The good news is, that with a very substantial increase in property sales in Larnaca and Famagusta (by 42% and by 50%), the drop in sales in Nicosia was more than offset. Although an increase in sales in Limassol and Paphos (by 2% and 8%) was not nearly as significant as it was in Larnaca and Famagusta. Nevertheless, the number of property transactions rose in these districts too.

The number of properties that changed hands during the two first months of this year was more than that during respective period of 2014 by 7 per cent.

Property sales in the January to February period-2015/2014 Comparison

Jan-Feb of Nicosia Famagusta Larnaca Limassol Paphos The  number of sales
2014 119 36 102 175 172 604
2015 91 43 161 192 159 646

In the January to February period of 2015, Larnaca performed best with an increase of 58 per cent compared to the same period a year ago. This result clearly indicates that houses and apartments for sale in Larnaca have been in considerably high demand this year. In Famagusta and Limassol, the number of properties sold during this period rose by 19% and 10% respectively. However, the number of property transactions fell by 24% in Nicosia and by 8% in Paphos. Local real estate experts think that in all likelihood, property prices will start recovering very soon. One of them is Charalambos Petrides, who is a chairman of the Cyprus Land Development Corporation. He believes that the recovering of real estate prices in Cyprus will begin in the second half of this year.

Source: Cyprus Mail