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Property prices at 2006 levels

Property prices in Cyprus have fallen back to levels last seen towards the end of 2006 according to the latest quarterly Residential Property Price Index released by the Central Bank of Cyprus.

property-pricesTHE CENTRAL Bank of Cyprus Residential Property Price Index reports that that property prices fell 2.7% in the first quarter of 2014 compared with a drop of 2.6% in the previous quarter.

The largest quarterly fall in apartment prices was recorded in Limassol (-3.7%), while Famagusta experienced the smallest drop (-2.6%). In Nicosia and Larnaca, apartment prices declined by 2.8% and 3.4%, respectively. Bucking the downward trend apartment prices in Paphos increased by 1.2% over the quarter; the first positive change in apartment prices in the district since 2010.

The largest fall in house prices over the quarter was recorded in Paphos (-3.7%), while the smallest drop was reported in Limassol (-2.2%). Houses in Nicosia, Larnaca and Famagusta, fell by -2.5%, -2.5% and -3.1% respectively, compared with the previous quarter.

On an annual basis, the residential property price index fell -9.7% in the first quarter of the year compared with an -8.7% drop in the previous quarter.

House prices declined by -9.4% and apartment prices by -10.0% on a year-on-year basis.

The largest annual falls in house prices were recorded in Famagusta (-18.5%) and apartment prices in Larnaca (-12.4%).

Property prices are now at approximately at the same level that they were towards the end of 2006.

Further reading

Central Bank of Cyprus Residential Property Prices Index – 2014 Q1

Readers' comments

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  • barry says:

    while my apartment in London has gone up £100,000 in a year my Cyprus villa has gone down 200,000 in 3 yrs. Before you shout me down, think why has Cyprus Property gone down. They should be double prices then 2006, everybody I ever spoke to would have loved a place here. So why, banks, developers, government, have brought Cyprus were it is now, papers tell you not to buy here, its a mine field, they are not wrong we have been here 20 yrs, when everybody is eating the golden apple nothing is said, then the apple goes bad, no one knows what to do why they are in it together I run a large firm, if I needed a large sum of money I would look at the easy way of finding it, I cannot believe they have not release the title deeds. I read every week what the government are going to do but it never happens. This is great place to live, but has been sucked dry, I am sorry to write this letter but its from the heart.

  • MartynG says:

    As recently with Cyprus RICS survey, surveys such as this CBoC don’t really reflect reality. Apart from exceptional properties in really good areas, locations, and with title Deeds most of us see actual SALE prices at well below 2006 paid prices. There is just so much residential property on the markets, island-wide, serious buyers with cash seem to have little difficulty in negotiating well below the RICS and CBoC ‘values’ given in recent reports. And the banks haven’t really started offloading NPL properties yet have they?

  • John Swift says:

    Agree with John, our friends property was valued at 393k euros in 2006 it sold for 250k euros in 2012 as did the town house of another friend previously valued at 150k euros in 2007 sold for 90k euros recently.

  • Andrew says:

    Properties are only worth what people will pay. With property sales at an all time low it seems that real estate in Cyprus is worth very little to very few.

  • Mike says:

    Of course there are lies, damn lies and then statistics. Talking up the economy in the face of obvious fact has always been the case as has never believing what you read in a newspaper except perhaps the date and price. The true measure of any property price is what a buyer actually pays for it, there will always be people who pay way over the odds for it, sometimes with good reason, and others who will only pay what it is worth to them. Of course there are also idiots who will believe anything and everything and they are then sadly easily parted from their money.

    Cyprus, in my humble opinion, is punching way above its weight by a mile but if it can get away with it then good luck to them.

    Those who pay over inflated prices perhaps need to question their own judgement and not rely on others with vested interest to dictate what they should pay.

  • john says:

    So an 1 bedroom apartment sold for €110,000 in 2006 is now worth €110,000

    More like 50% of that value.

  • J P says:

    I don’t think this is true. In 2006 a valuer valued my plot at CY£185K, at the end of 2007 we (owned by 3 family members) had offers from CY£130K to CY£235K.

    I am advertising in papers and have a sign up and the only offers we had in the last few months are for €120K and €150K ie from around CY£68 to CY£90K.

    It seems that the Cyprus property market is not price indexed. Its all on whim and there is no guarantee one would sell even if slashing the price!

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