Should you invest in Cyprus Property when prices are high or low?
Investing in real estate has been a popular choice for decades and if you have invested in the Cyprus property market in the previous years, you can not be disappointed, even with the slight drop in the demand in 2020 due to the Coronavirus (Covid 19) Pandemic.
Properties for sale in Cyprus have been in high demand with over 4000 sales in 2019 to non Cypriots. This number has fallen in 2020 due to travel restrictions, lockdowns around the world and fear of the 2020 pandemic, although Cyprus has handled the Covid 19 pandemic better than most countries. Prices have also fallen for certain types of properties in certain locations, but by a much smaller margin than demand.
With property prices lower in Cyprus and given the island's property market popularity coupled with the likelihood that the coronavirus pandemic will be over for the most part within 2021, would you consider this to be the best time to invest in some property? Buy low and sell high, the advice goes. But often enough, people are tempted to buy in when prices are at their highest and markets are booming. Often enough, casual buyers are late to the game.
Trying to find the bottom of a market is a difficult and complicated and not even pros can time it, most of the time. For the rest of us, is this as good of a time as ever to put some money into real estate in Cyprus?
Below you can find some interesting statistics of how Covid 19 has affected the Cyprus real estate market:
Overseas property sales in decline
Property sales to the overseas (non-Cypriot) market continued to fall in August with numbers down 18% compared to the numbers sold in August 2019 and down by 41% over the first eight months of 2020 compared to the same period last year according to official statistics.
Sales to the overseas market have been falling month-on-month since June 2019 (with the exception of a small rise in December 2019.)
Sales to the overseas market in August accounted for 35% of the total sold during the month.
Total overseas property sales
The total number of property sales to the overseas market during August stood at 199; a fall of 18% compared to the 244 sales achieved in the same month last year.
But it was not all bad news. Sales rose in Famagusta by 30%, while those in Nicosia rose by 8% compared to sales in August last year.
However, these rises were more than wiped out by falls 39% in Paphos, 18% in Limassol and 10% in Larnaca.
Despite the 39% fall in Paphos, it still remains the most popular destination for foreigners buying property in Cyprus.
Total Overseas Property Sale Contracts – 2019/2020 Comparison
During the first eight months of 2020 the sales to the overseas market have fallen 41% compared to the same period last year.
Sales to EU nationals
Sales to the EU segment of the overseas property market in August accounted for 14% of total sales – and the number of sales fell by 24% compared to August 2019.
Although sales in Nicosia (the capital) and Larnaca were up 120% and 31% respectively, they fell in the remaining three districts.
Sales in Paphos fell 45%, Sales in Famagusta fell by 36% and sales in Limassol were down 29% compared to August 2019.
Foreign (EU) Property Sale Contracts – 2019/2020 Comparison
During the first eight months of 2020 the sales to the EU segment of the overseas market have fallen 34% compared to the same period last year.
Sales to non-EU nationals
Sales to the non-EU segment of the overseas property market in August accounted for 21% of total sales – and the number of sales fell by 14% compared to August 2019.
Although sales in Famagusta rose by 600% (from a very low base), they fell in the remaining four districts.
Nicosia saw the number of sales fall by 63% and Paphos saw a fall of 33%. Meanwhile, sales in Larnaca and Limassol were down 30% and 13% respectively.
Foreign (Non-EU) Property Sale Contracts – 2019/2020 Comparison
During the first eight months of 2020 the sales to the non-EU segment of the overseas market have fallen 44% compared to the same period last year.
Property sales to the domestic (Cypriot) market
Encouraged by the introduction of an interest rate subsidy for new housing loans granted from 1st March 2020 covering loans up to a value of €300,000, sales to the domestic market rose by 5% in August compared to the same month last year.
Although sales in Paphos, Famagusta and Larnaca fell by 69%, 31% and 4% respectively, these were outweighed by a 59% rise in sales in Nicosia and a 6% rise in Limassol. (Nicosia and Limassol are the island’s main business centres.)
Domestic Property Sale Contracts – 2019/2020 Comparison
During the first eight months of 2020 the number of sales to the domestic market has fallen by 28% compared to the same period last year.
Analysis of property sales since 2000
Cyprus Property Sale Contracts 2000 – 2020
|Year||Overseas Sales||Domestic Sales||Percentage
1 The Department of Lands & Surveys has advised that overseas sales in 2018 and subsequent year should not be compared to sales in previous years due to changes in the methodology used to classify ‘Aliens’ (foreigners).