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Posted On: 08/12/2009
Sales of Cyprus property increased on the month in November, in the most positive sign that demand is picking up for overseas property among British buyers.
This is the most positive sign because it is official date, whereas previous reports have all been from realtors and developers.
According to the Cyprus land registry 158 contracts of sale were registered by foreign buyers in November, up from 117 in October, but obviously down on last year's 287.
Incredibly sales of property in Nicosia were actually higher this November than last, 22 compared to 31, which is quite a margin. Sales in all other regions and locals were down on last year.
This is also the most positive sign of an overseas property market recovery, and a very positive sign for the Cypriot market itself, because Cyprus has been one of the worst affected by the exodus of foreign buyers.
By far Cyprus property's biggest foreign market is the UK, and the country has been hit by the recession there, as well as by reports of corruption and people failing to receive their title deeds. The increased sales to foreigners in November is undoubtedly because of government efforts to tie up loopholes and ensure that foreigners have reproach; that they can get their own title deeds from the land registry if the developer fails to act properly on their behalf.
First Cypriot lawyers stated that if buyers registered their contract of sale in the Land Registry they could take the developer to court and have the Land Registry issue the deed direct to them if necessary, and more recently the government has brought legislation so that this can be done without having to go through the courts.
According to analysts on the ground, December is traditionally the quietest month in terms of sales of Cyprus property to foreigners. However, even December in 2007 was not as quiet as Cyprus has been all year round this year, so if it is indeed because of the improved law of the land then December could also bring an increase on November. Time will tell.
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