Mini boom in real estate purchases

The Cyprus real estate market is experiencing a mini-boom as Cypriots are rushing to buy real estate before rising construction costs hit the market, and anxiety from the Ukrainian war begins.

According to data released by the Land Registry, the number of sales documents submitted since 2008 was the highest in the first five months of 2022.

Sales documents submitted to the Land Registry from January to May were 5,090, an increase of 42% compared to 3,577 in the year-ago quarter.

There was a 5% increase compared to the same period of precoronavirus 2019.

At first glance, the war in Ukraine and sanctions on Russia have not affected the demand for real estate. Despite concerns The sanctions will exclude Russians from the eligibility to buy real estate in the EU.

Real estate appraiser Police Crusides told news site Stockwatch that demand from foreigners and locals is high despite the turmoil in the economic environment caused by the war and rising inflation.

“We have found that buying real estate is the best way to protect wealth from inflation,” said Kourousides.

He added that some buyers may have rushed to buy an apartment or home before the increase in construction costs was passed on to consumers.

According to the data, Paphos saw the largest increase in real estate sales, with transactions reaching 1,080 in the first five months, an increase of 79.7% compared to 601 in the same period last year.

Since then, Limassol sales have increased by 61.9% to reach 1,758 from 1086.

Real estate sales in Larnaca also increased by 13.1% to 58.3% on vacant lots in Famagusta.

Capital recorded the smallest increase in real estate sales of only 0.4%.

Compared to last year, the overall increase recorded in May was 50%, at 1,143. Sales slip It was submitted to the land registry office.

In 2021, approximately 10,347 sales documents were submitted, an increase of 29.9% annually, compared to 7,968 in 2020.

According to the Central Bank of Cyprus (CBC), the annual cost of building materials in March increased by 17.3% from last year.

Cyprus has also witnessed the highest inflation rate recorded in 40 years, with May equivalent to 9.1% registered in February 1982.

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https://www.financialmirror.com/2022/06/08/mini-boom-in-real-estate-buys/ Mini boom in real estate purchases