External properties demand recovers First Published: 07/02/2011 08:26
External demand for properties has recovered in the past few months at the same time that domestic demand returns to exceptionally low levels after the collapse of Lehman Brothers in the past quarter of 2008.
According to latest Land Registry data, property sales to non-Cypriots in January 2011 climbed 78.7% to 168 against 94 in the corresponding month of 2010.
The recovery follows a stabilizing course in 2010.
The sale to foreigners in 2010 reached 2030 plots against 1761 in 2009 (+15.3%).
The market circles support that this increase is attributable to the resale of properties by the non-Cypriots, mostly from the British to the British.
They warned that it is too early to end up with conclusions on this year’s external demand, which is exceptionally low compared to 2007-2008.
In his statements to StockWatch, Chairman of the Pancyprian Association of Real Estate Agents, Solomon Kourouklides said one month only is not representative of the course of the external demand. We have to see what will happen in the next few months”, he said.
“It can be said that the external demand shows stabilization since most sales are made from foreigners to foreigners”, he added.
Property valuator, Polys Kourousides stated that the recovery of the Russian market contributed to the recovery as well.
As for the British market, Mr. Kourousides noted that recovery will start after the end of 2011.
Despite the increase in external demand, domestic demand has stuck. As a result, the market hit a record low last since in early 2009.
In January 211, sales to Cypriots fell 25.6% to 354 against 476 in the corresponding month of 2010.