Property sales surprisingly up First Published: 06/02/2012 11:19
Property sales hit an 18-month high in January 2012, since the new laws on the reduction of transfer duties and VAT for first residence pushed the market up.
According to figures released on Monday, the deeds of sale climbed 54% to 803 from 522 in January 2011.
This is the first increase after 17 months of decline, while the number of sales is the highest since June 2010.
Sales for the same month increased in all municipalities, especially in Paphos (107%) and free Famagusta (105%).
In Larnaca, sales recorded an increase of 63%, in Limassol of 57% and in Nicosia of 5% only.
According to Vice President of Cyprus Real Estate Agents Association, Solomon Kourouklides, this increase is largely linked to the new laws on the cut or abolition of transfer duties and the VAT cut to 5% for first residence.
“Those laws have pushed the cost of purchase down and buyers run because it is not certain whether they will continue to apply”, he told StockWatch.
Property valuator, Polys Kourouklides said that the new laws helped the market but this increase has to do with the lower property prices in Famagusta and Paphos mostly.
Mr. Kourousides noted that if property prices continue to drop, demand will increase.