Last year saw the lowest property sales recorded since 2000, while the forecast for the New Year is not positive due to the lack of liquidity and difficulties in financing which are pushing prices even further down.
According to data released yesterday by the Land Registry, property sales fell by 40% in 2013, to 3,767 properties down from 6,269 in 2012.
Sales to foreign buyers fell from 1,476 in 2012 to 1,017, marking a 31.1% drop.
In December, 379 sales were registered at the Land Registry compared to 495 in December 2012, recording a 23% drop compared to an 11% dip in November.
Famagusta district suffered the largest reduction in sales reaching 59%, followed by Nicosia (52%), Larnaca (43%), Limassol (36%) and Paphos (24%).
Paphos has escaped a harsher fall in sales due to interest from Chinese buyers.
Vice-chairman of the association of real estate agents Solomon Kourouklides said that 2014 will be another difficult year for the beleaguered market as the financial parameters remain the same, with the lack of liquidity and financing from the banks.
"There is some demand for property but the transactions never go through due to the stricter criteria imposed by the banks for granting loans," Kourouklides said.
He also mentioned that Cyprus' high interest rates are taking their toll and that prices will continue to tumble downward this year.