Property sales hit highest level since 2007
The number of property sales in 2023 reached the highest level on record since 2007, with a total of 15,567 contracts deposited with the Department of Lands and Surveys.
Sales reached a record 21,245 in 2007. But then the global financial crisis, the most severe worldwide economic crisis since the 1930’s depression, caused property bubbles around the world to burst.
In Cyprus, property sales declined until the island had its own financial crisis in 2012/13. In March 2013, a troika of international lenders (European Commission, International Monetary Fund and European Central Bank) and Cyprus agreed a €10 billion bailout package. In return for the bailout, the troubled Laiki Bank was shut down, uninsured bank deposits over €100,000 were taken (‘haircut’) and what remained of the Laiki Bank was transferred to the Bank of Cyprus.
As a consequence of the dire economic situation, a mere 3,767 properties were sold in 2013.
Since 2013, the property market has improved, but there have been ‘problems’ along the way, including the impact of the COVID pandemic in 2020, the notorious ‘Golden Passport Scheme’, and the long-standing issues with title deeds, property repossessions and non-performing loans.
December 2023 Property Sales
Sales in December, as measured by the number of contracts deposited at Land Registry offices, rose 2 per cent compared to December 2022 according to official figures from the Department of Lands and Surveys.
But while sales in Nicosia, Larnaca and Famagusta rose by 40%, 15%, and 1% respectively, sales in Paphos and Limassol fell by 24% and 12% respectively compared to December 2022.
Annual Sales in 2023
During the twelve months of 2023, sales reached 15,567; an increase of 16% compared to the 13,409 achieved in 2022 despite repeated hikes in interest rates and the economic impact of wars in Ukraine and Israel.
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