Cyprus properties of £1.1bln changed hands in 2004.

(Stockwatch)

The activity of the island’s property market reached its peak in 2004, the preliminary results of the Land Registry have showed. Despite the drop in transactions by 11.9% compared to 2003, the total value of transactions recorded a sharp increase of 22.5% to £1,131 million. Total sales in 2004 stood at 17,397 against 19,737 in 2003.

Latest data confirm the slowdown in the sector: the total value of transactions in 2003 showed an increase of 37% against 2002, while the total number of sales had increased 18%.

The latest figures reflect the increase in the property prices by 20% to 30% per annum in the past few years. The purchase and sale documents submitted in 2003 also contributed significantly to the increase in the turnover”, Chairman of the Real Estate Agents Association, Solomon Kourouklides said.

Municipalities

Property prices among the municipalities varied. Larnaca suffered the largest increases, with total property sales reaching +117.5%. The number of transactions, however, fell by 1.1%.

In Famagusta Municipality, the turnover and transactions increased by 39% and 11,9% respectively. In Nicosia and Paphos, the turnover recorded an increase of 7.6% and 7.5% respectively and transactions dropped 18.1% and 17.9% respectively. In Limassol, the turnover fell 2.3% and the number of transactions dropped 12.5% compared to 2003. The reduced turnover in the municipality is attributable to the “equalization” trend in the market, Mr. Kourouklides said.

Larnaca

The sharp increase in the total value of sales in the Larnaca property market is attributable to the shifting of interest of the land developers due to the area’s lower prices compared to Paphos. “The difference in the property prices between Larnaca and Paphos has restricted the interest of foreigners, who had other properties in Paphos”, Real Estate Agents, Akis Iacovou told StockWatch.

We expect stabilization in the property market in 2005. This year’s prospects for Larnaca are gloomy, Mr. Kourouklides stated. Similarly, Mr. Iacovou said that the Larnaca market has frozen. “The turnovers in 2005 might not exceed those in 2002 (total £97 million). The Cypriots that wanted to buy properties, have already done that”, he added.

Tofarides: Prices will not drop

Chairman of the Land Developers Association, Lakis Tofarides believes that the property market will not follow a downward trend. Stabilization will be encouraged by the amnestied capital. “We should not expect a drop in the property prices. The land and the cost of constructions will not fall”, he concluded.

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