The sharp rise in property sales in February

February showed a sharp increase in real estate sales compared to 2018, according to official data published by the Department of Land Resources and Research.

In addition to a 48% drop in sales in December 2018 due to the rush to buy land in December 2017, before the government introduced VAT on land sales, the number of real estate sales has increased over the past 22 months.

In February 2019, 834 contracts for the sale of commercial and residential real estate and land plots were leased to the Land Department, compared with 666 in February 2018.

Although property sales in Limassol remained unchanged and fell by 8% in Famagusta, they increased by 102% in Nicosia, by 29% in Paphos and by 26% in Larnaca.

The figures show a continuous improvement in economic sentiment along with government schemes designed to stimulate real estate sales and foreign investment.

However, after pressure from Europe, the cabinet approved changes to the Cyprus citizenship scheme last month to make it “more targeted and trustworthy,” according to Finance Minister Harris Georges. These changes may reduce foreign investment over time.

Sales in the first two months increased by 18% over the same period last year. Total sales to the end of February amounted to 1600 compared with 1361 a year earlier.

Sales in Nicosia increased by 47%, and then in Paphos, where sales grew by 22%. Meanwhile, sales in Larnaca, Limassol and Famagusta grew by 13%, 5% and 1%, respectively.