The Department of Lands and Surveys today released data showing that the number of property sales in September 2021 continued to rise compared to the same month last year.
During September 2021, a total of 914 contracts for the sale of property were deposited with the land cadastre authorities in the Republic. This is a 16% increase compared to 768 contracts deposited in August 2020.
Sales have been improving since COVID restrictions began to ease. The number of sales in September exceeded the pre-COVID sales achieved in September 2019 (692).
However, the figures include an unknown number of “non-sale” agreements such as loan restructurings, debt collection and asset swaps. These procedures are agreed between banks and insolvent borrowers. So banks tend to reduce their problem loan portfolios. Unfortunately, the Department of Lands and Land Surveys does not publish these figures separately.
Sales were stimulated by the government’s interest rate subsidy scheme, which will run until the end of 2021. In February, the ceiling for home loans was raised from €300,000 to €400,000. The scheme provides for an interest rate subsidy of 1.5% for a period of four years.
The survey of bank lending, which was released earlier today by the Central Bank of Cyprus, shows that banks expect an increase in net demand for all types of loans from businesses and households during the third quarter of the year.
The Department of Lands and Surveys has not yet published its analysis of the figures showing domestic and foreign sales. We will provide you with the numbers as soon as they become available.