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Property prices in decline four and a half years

The RICS Cyprus Property Price Index has recorded a steady decline in the prices of residential houses and apartments across the island since its introduction in the last quarter of 2009.

SINCE the introduction of the RICS Cyprus Property Price Index more than four and a half years ago, residential property prices in the major urban areas of the island have fallen steadily.

Nationwide, the average price of a 2-bedroom 85sqm residential apartment of medium quality, in a good state of repair and with its all-important Title Deed has fallen by 38.1%, while the average price of a 3-bedroom 250sqm semi-detached house with a garden with the same specification has fallen by 27.3%.

As we reported last month, pundits believe that the downward spiral in prices will continue for the first half of the year, the exception of real estate in prime locations.

Although sales have increased during the past four months, whether this will result in an upturn of prices remains to be seen; typically the quarterly price index is published towards the end of the following quarter. And we have anecdotal evidence that vendors are slowly becoming more realistic about pricing and are accepting offers below advertised prices.

Price falls vary considerably in different parts of the island as can be seen in the charts and tables below.

Property prices – residential houses

Cyprus-house-prices

Town/District
Residential house prices at the end of Q4 2009
Residential house prices at the end of Q2 2014
Percentage Change
Nicosia€523,438€402,242-23.2%
Limassol€496,250€327,051-34.1%
Larnaca€438,750€281,400-35.9%
Paphos€460,417€348,105-24.4%
Paralimni/Famagusta€412,500€335,552-18.7%
Average house price€466,271€338,870-27.3%

Property prices – residential apartments

Cyprus-apartment-prices

Town/District
Residential apartment prices at the end of Q4 2009
Residential apartment prices at the end of Q2 2014
Percentage Change
Nicosia€171,155€112,809-34.1%
Limassol€177,978€112,046-37.0%
Larnaca€187,590€115,305-38.5%
Paphos€154,917€99,952-35.5%
Paralimni/Famagusta€153,790€83,378-45.8%
Average apartment price€169,086€104,698-38.1%

Note that the RICS index does not include the prices of holiday homes, which have fallen more than those of residential properties; considerably more in many cases.

Readers' comments

Comments on this article are no longer being accepted.

  • DaveC says:

    It’s doubtful that property prices will stabilise in Cyprus until the following take place:

    1. The title deeds issue is resolved;
    2. Property taxation is made a lot clearer;
    3. The banks admit to having overvalued property and/or bad debts on their books and are prepared to write these down to net realisable value and
    4. The property developers write down their inventories to reflect the market situation – which in some cases may mean acknowledging their insolvency.

    Unless these things happen, we are all living in a fool’s paradise.

  • Deanna says:

    Mmmm. So, when they are re-valuing properties for IPT they should be registered at ‘less’ than their previous price ………….

  • Mike says:

    I tend to agree with aggis here. Property prices have been so over inflated by the foreign market that we have reached a stage bordering on the ridiculous. I still maintain the market should fall a further 50%+ at least just to reach a level of realism. The products are inferior, the infrastructure is dilapidated and the attitude to foreigners borders on the criminal. What we do have is a predominantly fine climate, honest and hospitable people (developers and politicians excepted) and the possibility of a fine healthy lifestyle if laws could be applied and policed.

    If we concentrate on our strengths we can rise from the ashes again.

  • aggis demetriou says:

    As I have always said, property in Cyprus has fallen 40%, If no upturn happens within March 2015, expect property to come a further 20%.

    We need to get real.

    Property in Cyprus are for living in, there not investments like the UK.

    So what ever level you home is at shouldn’t matter just enjoy it and remember you only lose if you decide to jump ship.

  • The views expressed in readers' comments are not necessarily shared by the Cyprus Property News.

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