Foreign sales hit 16 year high
During January 2023 foreign buyers deposited 594 contracts of sale at Land Registry offices across the island. Moreover, these accounted for 54% of all sales; the first time since 2007 that the number of foreign sales has exceeded domestic sales.
Foreign nationals from EU member states deposited 150 sales contracts in January; a fall of 32% compared to the 221 contracts deposited in January 2022.
Contracts deposited by foreigners from non-EU countries (third country nationals) in January rose a starting 148% reaching 444 compared to 179 in January 2022.
Cypriot citizens deposited a total of 497 contracts in January compared to 455 in January 2022; an increase of 9% and the highest figure recorded since January 2012.
However, these figures include an unreported number of ‘non-sale’ agreements such as loan restructurings, recoveries and debt-to-asset swaps agreed between financial institutions and defaulting borrowers in efforts by the banks to reduce their non-performing loan portfolios.
The freeze that protected defaulted borrowers with primary residences valued at €350,000 or less, businesses with a turnover under €750,000 and land with a value of €100,000 or less from repossession ended on 31st January. As a consequence, we can expect an increase in ‘non-sale’ agreements in the coming months.