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Q1 property sales up 31%

10/06/2004 08:10
The boom in the Cyprus property market continued in the first quarter of 2004, since according to Land Registry data, property sales showed an increase of 31% to £248 million against the corresponding period of 2003 and were almost twice as much as those in the first quarter of 2002.

“The operations of the sector are going well. They will continue to do so until 2007, when the government will impose a VAT on properties”, Chairman of the Land Developers’ Association, Lakis Tofarides told StockWatch.

Doubts…

However, Mr. Tofarides expressed his doubts on whether the latest numbers show the real picture of the market, since they only include transactions whose deeds have been submitted to the land registry. The data lacks purchase and sales of properties, old flats or houses whose deeds have not been issued.

Mr. Tofarides said that the Land Registry data have been “puffed” by the recent decision of the Cypriot citizens to transfer their properties to their children, taking into account the increase in transfer duties among the relatives.

Development never dies…

Similarly, Chairman of Real Estate Agents Association, Solomon Kourouklides expressed his reservations on the latest Land Registry data. “These numbers are not indicative. Recent surveys showed that there will be a drop in the property market growth rate”.

Although in 2002 and 2003 the market was affected positively by the expectations from the EU accession, market was badly affected in first quarter of 2004 due to the developments on the Cyprus issue. Before the referenda, the property market was marked by “the political risk that developers should take into account”. The second quarter of the year will show the real situation, Mr. Kourouklides concluded.