Sales in property market at £203 million

According to the Land Register data released recently, there are signs of stabilization in the property market for the first quarter of 2005. Voluntary sales dropped from £248 million to £203 million due to last year’s uncertainty before the imposition of the new tax regime in view of the island’s accession in the EU. This uncertainty pushed to the transfer of titles to avoid the upcoming taxes.

“There are signs of stabilization in the market, however, the first quarter data are not always illuminating. There is a slowdown in the price of houses and flats but not in the price of properties. It is worth noting that house and flat prices increased by 5% in 2004, while property prices for the same period recorded a sharp increase of 11-14%. Demand for properties has not been affected by the drop in external demand. This trend has been even boosted by the anticipated imposition of VAT on sales from January 1, 2008”, Land and Building Developers Association Deputy Chairman, Solomon Kourouklides stated.

Despite the stagnation in the island’s property market due to the increased demand for properties in the occupied areas, the legal measures against those who buy G/C properties in the north and the presence of Interpol have frozen the T/C market. “This has strengthened thee domestic market”, Mr. Kourouklides added.

Meanwhile, the foreigners’ interest on properties has been reheated lately. It is worth noting that Thompson reached an agreement with Parador, a property sales company. The customers of the largest tour operator in Britain will now be able to buy properties in Cyprus, Spain and France from the 750 shops that the company has. Parador expects that its 275 employees will sell properties of £300 million in 2004.

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