The real estate sales agreements that were deposited in the Land Registry Office climbed in Decembert at its highest point since 2008, ending the year with a large increase and exceeding the expectations of the stakeholders in the sector.

Real estate sales received a positive boost from the improved economic environment as well as from loan restructuring, which seems to contribute to the picture presented by land registry data.

Property sales rose for the third consecutive year, still remaining around 45% below 2000 levels.

On the one hand, the increase creates further expectations for strengthening the upward trend and improvement of real estate data, as both domestic and exogenous demand seems to recover.

On the other hand, the accumulation of hundreds of millions of real estate on banks' balance sheets and the growing volume of divestments casts doubt on the future course of the market as it affects the offer.

According to data for the whole of 2016, the sales documents deposited amounted to 7036 cases compared to 4952 in 2015, recording an annual increase of 43%

Followed by Paphos where sales increased by 40% to 1740 from 1241.

In Nicosia and Famagusta, sales rose 38% and 35% to 1031 and 436 respectively.

The smallest increase was recorded in Larnaca where sales increased by 27% in 1360, 2016.

According to the latest cadastral data on sales to foreigners, in the first nine months of 2016 they reached 1459 units, compared to 1214 in the first nine months of 2015, recording an increase of 20%.

The increase is in the process of selling out real estate on behalf of banks, which seek to boost interest.

In several cases, borrowers end up with agreements with banks to swap debt with real estate.

The recovery of the property market seems to have been underpinned by government moves to reduce transfer fees and promote urban planning incentives.

By Maria Hambi