Cyprus Property News
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Limassol Property Values Drop

Based on the results of the eleventh edition of Property Price Index of RICS, Limassol recorded the biggest drop in property values, with fall 3.4% for apartments and 2.3% for homes.


The Property Price Index recorded significant reductions in all major urban areas in Cyprus, with its values and rents indicating a decrease. According to data from the second quarter of 2012, Nicosia and Limassol are found in the most unfavorable position. Nationwide, the values of homes, both houses and apartments, showed a quarterly decline of 1.2% and 2.0% respectively. Pancyprian prices fell by an average of 3.0% and 2.1% in offices and warehouses by 3.2%. Compared with the corresponding second quarter of 2011, prices of apartments fell by 10.2% and 6.4% of houses, stores by 10.8%, 9.0% of the offices and warehouses at 12.0%.


The average rental price in the whole Cyprus fell 2.1% in apartments and 0.5% in homes, stores 2.7%, 3.4% in warehouses and offices 2.4%. Comparing rents with those of the second quarter of 2011, rental rates fell by 4.7% for apartments, 3.3% for houses, 11.0% for retail, 14.2% office and 10.1% for warehouses. All categories in all geographic areas are still affected, while those that were first to record a drop, now have the smallest degree of reduction in prices.


According to Paul Loizou MRICS, «During the second quarter of 2012, our economy is further burdened by the consequences of political unrest in Greece and uncertainty observed in the local economy. The worsening economic situation in Cyprus and the growing political and economic instability across the eurozone, led to a significant slowdown in lending system and to further increase the unemployment rate. The first half of 2012 found investors postponing decisions and seeking safe havens for their funds. Under these circumstances, real estate, both residential and commercial, are characterised as "a risky investment" with a negative short and medium term perspectives. This led to a decline in interest from local and foreign buyers, resulting in a low cycle of transactions. The decrease was particularly evident from locals, as rising unemployment and deteriorating prospects for the local economy has led to a sharp decline in interest. "