Cyprus property market recovered lost ground in 2021

Jan 12, 2022 | Latest News

According to the report, the 2021 was a year of correcting the anomalies caused by the pandemic in the  market during 2020, when a significant number of transactions were postponed due to the uncertainty caused by the pandemic. At the same time, the general upward trend recorded in mortgages proves that the state interest rate subsidy plan worked positively for the market. 

The report, titled ‘Real Estate Dynamics in Cyprus’, shows that property transfers during the first eleven months of the year were 3.4% higher than in 2019, the last year before the economy was struck by the adverse effects of the coronavirus pandemic. Property sales and mortgages during the same period of time were down by 4.2% and 4.4% respectively. The total value of mortgages, however, was 82.2% higher, something which has been attributed to the sector’s boom in the Limassol district. 

That being said, the lack of correlation between the value of mortgages to the actual total number of mortgages points to the fact that a select few high-property mortgages have distorted the figures. According to the report, there has been an increase in the demand for used real estate, with 14,228 property transfers having taken place as of November. This figure is 3.4% higher when compared to 2019 and 26.5% up on last year’s figure. However, the total number of sales until November was 4.2% down on the figures from 2019. 

In Nicosia district, most indicators were positive during the first eleven months of the year, with property transfers and sales being higher than the corresponding period in 2019. “The number of mortgages was also increased, while the value of mortgages in relation to the corresponding period of 2019 was reduced by 15 per cent,” the report said. 

In Limassol district, property transfers rose by 2% compared to 2019 and 30% compared to 2020. In terms of sales, these rose by 28% year-on-year, but were still 11% down on the figures from 2019. 

“In Limassol, the number of mortgages was slightly increased while the value of mortgages showed a dramatic increase which approached 300%,” the report said. “This indicates that some mortgages were related to one or more loans of a very large amount,” it added, explaining that, while in 2019 and 2020 mortgages amounted to approximately €900 million, this year, they jumped to a whopping €3.2 billion.

The situation was not as positive in Paphos, at least not when compared to 2019. 

During the first eleven months of the year, property transfers were down by 20% when compared to 2019, while sales and mortgages were also down by 35%t and 15%respectively. 

In Larnaca, for the aforementioned period of time, property sales were down by 8% on the figure from 2019, while sales were up by 5%. The number of mortgages was 11% down on the figure from 2019, although their value was 0.1% higher. 

Finally, in Famagusta, all indicators were positive, with property transfers, sales and mortgages all being higher than the figures from 2019.

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