Property Sales off to a promising start

February 7, 2017

PROPERTY sales in Cyprus during January 2017 rose by 29 per cent compared to the same period last year according to the official statistics published by the Department of Lands and Surveys; 2017 got off to a promising start. During January 2017 a total of 423 contracts for the sale of commercial and residential properties and land (building plots and fields) were deposited at Land Registry offices across Cyprus, compared with the 327 deposited in January 2016. Of those 423 contracts, 330 (78%) were deposited by Cypriot purchasers and 93 (22%) were deposited in favour of overseas purchasers. Although sales in Famagusta fell 5% compared with January 2016, they increased in all the other districts. Limassol lead the way with sales up 43%, followed by Nicosia where sales were up 33%, while sales in Larnaca and Paphos rose by 31% and 19% respectively.

Although it was feared by some that the Capital Gains Tax concession introduced in mid-2015 exempting those who purchased property by 31 December 2016 from paying Capital Gains Tax regardless of when the property was sold would result in a fall in property sales, their fears appear groundless.

Domestic property sales Property sales to the domestic (Cypriot) market in January 2017 rose 27% compared with sales during the same period last year, with sale (and ‘non-sale’) agreements reaching 330 compared with 260 in the same month last year. While sales in Famagusta were unchanged compared to January 2016, they rose in all other districts. Sales in Nicosia rose 47% and sales in Limassol rose 43%, while sales in Paphos and Larnaca rose by 20% and 13% respectively.

Overseas property sales Property sales to the overseas (non-Cypriot) market during January 2017, which are unaffected by ‘non-sale’ agreements rose 39% compared to the same month last year with 93 properties sold compared to 67. However, just a single property was sold in Famagusta and sales were down 18% in Nicosia. But these falls were outweighed by 150% increase in Larnaca, a 46% increase in Limassol and a 15% increase in Paphos.

Source : Cyprus Property News