A significant number of real estate brokerage offices throughout Cyprus is facing layoff due to reduction of work or suspend their operations with a potential restart in the future if economic conditions in the housing market improved. According to the president of the Association of Realtors Cyprus, Mr. Solomon Kourouklidi, 1 every 10 real estate offices have not renewed their licenses this year because of adverse conditions created in real estate.
“This applies primarily for small offices with limited number of employees and low turnover, but this situation is unprecedented for Cyprus and is another clear indication of the situation created”. The downturn in the property continues. According to the latest Land Registry figures, only 554 new sale documents filed in August 2010 compared with 642 in August last year, representing a decrease of 14%. Apart from the reduction of exogenous demand for property (eg by British or Russians), reduced demand for real estate is due both to high lending rates and difficulties in granting loans from commercial banks.