Best year for property sales since 2008
There was a significant increase in the number of property sales contracts deposited at Land Registry offices in 2022 compared to the number deposited in 2021.
According to official figures from the Department of Lands & Surveys, a total of 13,409 contracts were deposited during 2022; a 30% increase in the number deposited in 2021 and the largest number since 2008 (when 14,667 sales contracts were deposited.)
During the month of December, the number of property sales reached 1,335; a rise of 4% compared to December 2021.
Although this number is the highest December figure achieved since 2008, it was just 4% greater than the 1,284 achieved in December 2021.
The largest increase in property sales during December was recorded in Larnaca, where sales rose 16% compared to December 2021. Increased sales were also reported in Limassol (up 10%) and Paphos (up 7%). However, sales in Nicosia, which started to slow in October, fell 13% compared December 2021, while sales in Famagusta fell by 1% following a 14% fall in November.
The slowdown in sales in December, which started in November is probably a result of the geopolitical situation, rising interest rates, increased costs of building materials and inflationary pressures, which are now being reflected in the island’s property market.
As we reported earlier this month, market pundits expect that the property market will stabilise over the next couple of years. While the number of Cypriots buying property is likely fall as they become priced out of the market, they believe a rise in demand from foreign buyers will fill the gap.
Market segment analyses
In December 2021, domestic (Cypriot) buyers accounted for 690 (52%) of property sales, while 645 (48%) were bought by foreigners.
Of the 645 properties bought by foreigners, 236 (37%) were bought by EU citizens, while 409 (63%) were bought by non-EU citizens.
Property sales to the domestic market
Domestic real estate sales in December, as measured by the number of sale contracts deposited at Land Registry offices, fell 9% compared to December 2021 with sales in Nicosia, Famagusta and Limassol all recording falls.
Limassol saw the greatest number of sales followed by Nicosia, Larnaca, Paphos and Famagusta.
Sales to overseas buyers during 2022 reached 5,928; a 61% increase in the 3,691 achieved in 2021.
Property sales to EU nationals
Sales to EU nationals were down 11% compared to December 2021 with sales falling in all districts with the exception of Limassol, where they remained steady, and Famagusta, where they rose 11%.
Paphos achieved the greatest number of sales, followed by Limassol, Larnaca, Famagusta and Nicosia.
Foreign real estate sales to EU nationals during 2022 reached 2,545; a 39% increase in the 1,836 achieved in 2021.
Property sales to non-EU nationals
Sales to non-EU Nationals rose by 59% compared to December 2021, although sales fell in Famagusta remained steady.
Limassol recorded the highest number of sales, followed by Paphos, Larnaca, Nicosia and Famagusta.
Overseas sales to non-EU nationals during 2022 reached 3,398; an 82% increase on the 1,855 achieved in 2021.