Surprise boost to real estate market

THE real estate market saw an unexpected boost last month, with sales documents filed at the land registry recording a 54 per cent rise year on year.

The biggest rise was seen in Paphos followed by Famagusta.

Compared to the 522 contracts in January 2011, the first month of the year saw 803 submitted at the land registry, probably boosted by low prices – especially in coastal areas – and incentives passed by parliament last November.

It is understood that this was the first rise in many months, led by Paphos with 107 per cent – 209 versus 101.

Famagusta followed closely with 105 per cent (86 compared with 42) with Larnaca coming in third – 63 per cent (117 compared with 72).

Limassol chalked up a 57 per cent increase – 209 compared with 133.

Nicosia recorded a paltry 5.0 per cent, 182 versus 174.

From the 803, only 106 were submitted by foreign buyers, most in Paphos – 49 – followed by Limassol, 23.

Parliament last year passed a bill suspending for six months the payment of transfer fees on properties subject to VAT and cutting by 50 per cent fees on properties where no VAT is paid upon registration of the title deed in a bid to boost the sluggish real estate market.

VAT was also reduced to 5.0 per cent if a house was the buyer’s first.

Source: http://www.cyprus-mail.com/cyprus/surprise-boost-real-estate-market/20120207