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Cyprus home prices fall 3.4 per cent

The Cyprus Statistical Service (CYSTAT) reported that the price of houses in Cyprus fell 3.4 per cent in the first quarter of 2016 in the first issue of its House Price Index issued earlier today.

Cyprus home prices fall 3.4 per centTHE CYPRUS Statistical Service (CYSTAT) announced that prices for houses and apartments in Cyprus fell on average 3.4 per cent between January and March 2016 in its first House Price Index (HPI) published earlier today.

The House Price Index also reports that residential property prices have fallen 1.2 per cent year-on-year.

According to CYSTAT’s press release, the HPI “captures all types of residential properties, both new and existing”.

YearQuarterHouse Price Index (2010=100)Quarterly Change (Compared to the previous quarter) (%)Annual Change (Compared to the same quarter of the previous year) (%)
2016Q186.32-3.4-1.2
 Q2
 Q3
 Q4
2015Q187.39-2.80.6
 Q293.897.42.4
 Q393.27-0.72.5
 Q489.37-4.2-0.6
2014Q186.88-2.7-6.2
 Q291.725.6-1.2
 Q390.97-0.82.8
 Q489.95-1.10.8
2013Q192.6-3.4-1.7
 Q292.80.2-1.2
 Q388.46-4.7-9.3
 Q489.260.9-6.9
2012Q194.24-1.1-4.6
 Q293.9-0.4-7
 Q397.563.9-1
 Q495.86-1.70.6
2011Q198.82-0.4-2.5
 Q2100.972.21.1
 Q398.51-2.4-1
 Q495.31-3.2-4
2010Q1101.31-1.6-6.6
 Q299.9-1.4-6.9
 Q399.54-0.4-5.7
 Q499.24-0.3-3.6

(Regular readers will be aware that the RICS (Cyprus) Property Price Index is based on hypothetical properties with Title Deeds; this may help to account for the differences between the two indexes.)

Among EU Member States, the highest annual increases in house prices in the first quarter of 2016 were recorded in Hungary (+15.2%), Austria (+13.4%) and Sweden (+12.5%), while falls were observed in Italy and Cyprus (both -1.2%).

Compared with the previous quarter the highest increases were recorded in Hungary (+5.2%), Austria (+4.2%) and Romania (+3.3%), and the largest falls in Cyprus (-3.4%) and Malta (-2.8%).

Further reading

Cyprus House Price Index Q1 2016

Eurostat newsrelease ‘House prices–annual rate of change for the euro area and the EU’

Readers' comments

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  • David Birkett says:

    Dear Nigel,

    Your regular updates on Cyprus property values are very helpful and greatly appreciated.

    However, both CYSTAT and RICS use the word “average”, which is ambiguous (the mean or the median or the mode).

    The mean is unreliable, being subject to outliers.

    The median would be more usefully representative.

    Can you please confirm which sense of the word “average” is actually intended by CYSTAT and RICS?

    Many thanks in advance, and best wishes – David Birkett.

    Ed: Looking at an earlier RICS report for Q4 2015, it looks as though average means average. You may find further information in their methodology.

    As CYSTAT hasn’t published the methodology it uses, I can’t comment.

  • Scruffy says:

    @Sky

    Whilst it cannot be denied that the build quality can sometimes be dubious in Cyprus, I do not think that is unique to Cyprus. My son is house hunting in Scotland and has been horrified at the standard of the new builds available and is now considering an older property. Most new builds are like chicken coops without adequate storage space or decent size garden areas and build quality issues.

    I think those who constantly complain about “inflated” Cypriot house prices invariably fail to include what is (in my view)the most important factor in their property appraisal and that is the fact that, CYPRUS IS A FANTASTIC PLACE TO LIVE.

    If all you want is a property that is cheap then I’m sure you can find a reasonably priced terraced concrete block in any city suburbs, town and village in the UK.

    Having said that, you would be unlikely to find even the worst of these UK properties going for the same or less money needed to buy a nicely presented 2 bed apartment in sunny Cyprus. So who’s prices are inflated?

    If all you care about is how much of a killing you can make on a property then I think you should be careful not to “miss the boat” here in Cyprus.

    Like it or not property prices for many properties are on the way up. The reason is simple. The legal problems that wholly distorted the market in the past are slowly but surely being resolved and when they are, you can bet that these properties that you refer to as concrete blocks will be worth a “good few bob” more than they are now.

  • sky says:

    Residential property price index of the CBC went down from 100 in 2010 to 74 in 2015 Q1, a “bit” different from the above figures… and 2016 Q1 still to be published as today…one wonders why…

    RICS is strongly linked to real estate agents.
    CyStat is strongly linked to the government.
    Cyprus banks are strongly linked (not to say exposed) to the real estate market.

    Now believe what/who you want.
    But no one will make ME believe that the local average house (the “everywhere the same” concrete cube on a ridiculous plot without a decent garage and garden) built by €5/hour foreign workers, offering a 2% gross yield, in a country with a bankrupt economy and an oversupply of properties, is worth more than €300/sqm.

  • embapaphos says:

    Goldfish memories, anyone remember Hasikos saying when asked that the IPT is here to stay ? It may well stay but seems there is a chance it goes or will get reduced.

  • Deanna says:

    Everyone and anyone who buys these days has the enormous advantage of the internet/information. When we bought the world-wide-web was still a thing of science fiction to most people.

  • Mike says:

    As Pils, Scruffy and in a roundabout way the Ed infers all these figures are a definite maybe thrown in with a good measure of attempts to talk things up and pure guess work substantiated with figures extrapolated from anywhere that in some obscure way substantiates the claims.

    The reality is what you see around you and that is still a vast number of finished, part finished or just started properties, 90% probably being illegal and still vastly overpriced for an Island with no infrastructure, pride in surroundings and a countryside strewn with fly tipped rubbish.

    I feel sorry for those seduced into paying vast sums for their properties but the fact is they are just not worth it unless to someone attempting to launder cash.

    All the statistics in the world cannot hide the facts, as much as they seem to convince some. We need a reality check and one that is 10 years overdue.

  • Pils says:

    Cyprus land of NODDY, living in a state of make believe.

    We receive continually misleading information on property prices on the up, next day on the down, what can we believe.

    Cyprus information centre trying to put on positive spin on the Cyprus economy, unfortunately, we have a very long memory of deception and dishonesty. This episode started from 2006 to present date.

  • scruffy says:

    I wish they would make up their minds. Last week they were telling us about a recovery. Incredible.

    Ed: The two indexes are different. The CYSTAT one includes all types of residential property based on data from the Department of Lands and Surveys, while the RICS (Cyprus) Index excludes holiday homes and uses notional properties in good condition with Title Deeds.

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