Cyprus Property News
Cyprus | Posted:

Cyprus Property Prices drop during first quarter

A decreased of 10.8% in annual prices for apartments were shown in the results of the tenth edition of the Cyprus Property Price Index of RICS (Royal Institution of Chartered Surveyors of Cyprus). The report was conducted in collaboration with the Association of Scientists Surveyors Construction Economists of Cyprus (SEEOKK).

The Property Price Index continued to show a negative trend during the first quarter of 2012, with prices and rents recording a fall in all urban areas. Limassol is in the worse position, as despite the fact that until the first half of 2011 it was less affected by the overall negative market trend. The new difficulties are a result of declining interest from foreign buyers. Prices for houses, both for homes and for apartments, showed a quarterly fall of 2.4% and 2.6% respectively, with the largest decrease recorded in Limassol (apartments and houses -6.5% -5.3%). Nationwide prices fell by an average of 3.0% and 3.1% in offices and for warehouses by 2.1%. Compared with the first quarter of 2011, prices of apartments decreased by 10.8% and 6.3% for houses,  shops at 12.0%, 9.0% for offices and warehouses at 10.7%.

The average rental price in Cyprus fell to 2.2% in apartments, for houses by 2.2%, 1.8% for stores, warehouses for 2.8% and 4.3% for offices. Comparing rents with those in the first quarter of 2011, rental rates fell by 5.7% for apartments, homes for 1.5%, 12.3% for shops, offices for 13.9% and 11.1% for warehouses. The variations recorded indicate that the market is now affected as a whole, while it appears that the first areas recording the biggest decline are now coming to their lowest point.

According to a member of RICS Cyprus, "During the first quarter of 2012, the Cyprus economy continued to accept the burden of the consequences of the economic crisis facing Greece and the" haircut "of Greek debt had a significant impact, because it led to a marked slowdown in mortgage and corporate loans and loans and a higher rate of unemployment. The combination of the above, together with the uncertainty surrounding the banking system in Cyprus, led to a further slowdown. While the first half of 2011 saw some signs of sluggish economic growth in the second half of the year and the first quarter of 2012 saw investors to postpone decisions. This resulted in low turnover and transactions and reduced interest, particularly from local buyers, as those most affected by rising unemployment and the reduction of appropriations. "