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
Residential house prices at the end of Q4 2009
Residential house prices at the end of Q2 2014
|Average house price||€466,271||€338,870||-27.3%|
Property prices – residential apartments
Residential apartment prices at the end of Q4 2009
Residential apartment prices at the end of Q2 2014
|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.