Land transaction volume & value increase continues
WiRE FS, combining real estate knowhow with technology, has published its analysis of December 2021’s land transactions across Cyprus.
WiRE’s analysis indicates that compared to the previous month there has been a 35% increase in the number (1054) and a 44% increase in the value (€171.4 million) of land parcels transacted.
More specifically, Nicosia had the highest number of land transactions (390 transactions), with Lakatamia be the most popular location (62 transactions). Limassol had the highest total value of land parcels transacted (€76.5 million), with Limassol Municipality having the highest value of properties (€19.9 million).
Since the start of the year the total number and value of land parcels transacted was 8,947 and €1.2 billion, respectively. In particular, the year-to-date transaction volume of plots was 3,382 and of fields 5,731, while the transaction value was €515.5 million and €642.2 million respectively.
Compared to November 2021, transaction volume of plots increased by 75% in Nicosia, 15% in Limassol, 24% in Larnaca, 150% in Paphos, and decreased by 75% in Famagusta.
Over the same period transaction value increased by 71% in Nicosia, 33% in Limassol, 12% in Larnaca and 401% in Paphos, while it decreased by 78% in Famagusta.
Over the same period, transaction volume of fields increased by 29% in Nicosia, 42% in Limassol, 8% in Larnaca and 68% in Paphos, and decreased by 3% in Famagusta. The transaction value increased by 156% in Nicosia, 239% in Limassol, 86%in Paphos and 41% in Famagusta, while it decreased by 72% in Larnaca.
Pavlos Loizou, Managing Director of WiRE FS, commented that “Land transactions are indicative of the nature of the market in Cyprus; namely that demand is mainly driven by locals who acquire land for either own use, to build their homes, or for long-term investment.
“Due to low interest rates, non-existent deposit rates, and a lack of holding tax on owning real estate, many have chosen to acquire land as an easy way to invest in real estate. Recent experience however has shown that land, particularly in secondary areas, tends to become illiquid and loose its value quickly in times of crisis.”
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