foreign purchases hit 10yr low in cyprus
News Posted On: 06 January 2012
I just read an article on how 2011 was a great year for Turkey and for Turkish property. Unfortunately the same cannot be said for Cyprus. After hopes that 2010 may be seeing the beginnings of a recovery, instead the picture simply stopped getting worse for a little while, but it soon started again.
Sales continually, dropped, flopped or stagnated in the pits throughout 2011, but now, the latest data from the Cypriot Department of Lands and Surveys shows that foreign sales have hit a 10 year low. Cyprus became one of the most popular destinations for foreigners (especially Brits) to buy property during the boom, with its peak years being 2006, 2007 and 2008. Ten years ago you hardly heard of a foreigner buying in Cyprus, so for sales now to be lower than that point is saying something indeed.
In December, the number of contracts registered by foreign buyers fell 55% to 116 compared with the 258 contracts deposited at island Land Registry offices in December 2010. This was the biggest monthly drop of the year.
Unlike previous months there was no beacon of hope in the regional data either, all regions saw falling sales in December. Famagusta was worst hit with just 8 properties bought by foreigners, compared to 27 in December 2010, a drop of 70%, Paphos followed with sales down 64%, Limassol sales fell 55%, Nicosia 36% and Larnaca 34%.
Experts are not predicting a quick recovery, which is no surprise. According to Maribeth Davies of Hamptons International, the core of the problem is the way in which the Cypriot market is perceived. "Buyers of international property have become more educated and particularly wary of the risks of buying abroad and are now looking for ways to minimise that risk," she told OPP.
"We are expecting to see this behaviour continue into 2012 and would expect properties which offer the opportunity to generate a rental income to assist in covering costs and generate a profit to be particularly popular. The most sought-after properties will be quality homes in easily accessible locations with access to tourist attractions such as beautiful beaches and leisure amenities."
View Cyprus property for sale
Written by Liam Bailey
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