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Home prices fell in first quarter

Home prices in Cyprus fell by an average of 1 per cent during the first quarter of 2015 compared to the previous quarter according the latest issue of the Cyprus Central Bank’s Residential Property Price Index.

Cyprus home prices fell in first quarter says Central BankTHE CYPRUS Central Bank’s Residential Property Price Index released earlier today reports that home prices fell by an average of 1 per cent during the first quarter of 2015 compared with a 2 per cent fall over the previous quarter.

The prices of houses and apartments recorded quarterly falls of 0.8% and 1.5% respectively; the lowest quarterly falls since the fourth quarter of 2012.

Year-on-year home prices fell 6.5 per cent in the first quarter of 2015, compared with 8 per cent in the previous quarter.

The housing price index recorded the largest quarterly decline in Larnaca and Limassol (1.3%) while Famagusta recorded a quarterly increase of 0.7%. Quarterly falls were also recorded in Nicosia (-1%) and Paphos (-1.2%).

The largest quarterly decline in apartment prices was in Larnaca (-4.1%), while the smallest was in Limassol (-0.8%). Apartment prices in Famagusta rose 5.1%, while those in Nicosia and Paphos fell 1.2% and 1.6% respectively.

The biggest annual drop in residential property prices during the first quarter was in Nicosia (-7.2%), while the smallest annual fall was recorded in Paphos (-1.5%). Prices in Limassol, Larnaca and Famagusta showed annual falls of 6.1%, 6.8% and 1.7%, respectively.

According to the Index residential property prices have returned to their 2006 levels; the year in which excess demand for residential loans started, which resulted in the property market overheating.

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