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Residential property prices fall 1.7 per cent

Residential property prices in Cyprus continued to fall in the third quarter of 2014, according to a Eurostat newsrelease published today, falling 1.7% compared to the third quarter of 2013.

Residential property prices fall 1.7 per cent COMPARED with the second quarter of 2014, house prices rose by 0.6% in the euro area and by 1.1% in the EU in the third quarter of 2014 according to a Eurostat report issued earlier today.

Among EU members states, the highest annual increases in residential property prices during the third quarter of 2014 were recorded in Ireland (+15.0%), Estonia (+13.2%), Latvia and the United Kingdom (both +11.7%), Sweden (+10.3%) and Lithuania (+10.1%) and the largest falls in Slovenia (-5.4%), Italy (-3.8%) and Romania (-2.3%)

Prices in Cyprus fell 1.7% during the third quarter compared to the same period in 2013, but remained at the same level as the second quarter.

Eurostat employs a different methodology to assess price movements to that used by the Cyprus Central Bank, which recorded an annual decrease of 8.9% in the third quarter of 2014.

The Eurostat House Price Index (HPI) measures the price changes of all residential properties purchased by households (flats, detached houses, terraced houses, etc.), both newly built and existing, independently of their final use and independently of their previous owners.

The Member States’ HPIs are compiled by the National Statistical Institutes. The euro area and the EU aggregate HPIs are compiled by Eurostat. HPIs are computed as annually chained indices with weights being updated each year. The European HPI aggregates are currently calculated as weighted averages of the national HPIs using as weights the GDP at market prices (expressed in millions Purchasing Power Standards – PPS) of the countries concerned.

The figures are not seasonally adjusted.

The methodology is summarised in the Handbook on Residential Property Price Indices, published in 2013 (first edition).

Further reading

Eurostat newsrelease 14/2015 – 21 January 2015

Readers' comments

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  • Mike says:

    Pantheman – I tend to agree so I use a measure of what we bought in the 60’s, 80’s, mid 90’s and mid’s 2000 to indicate worth and I firmly believe the telephone number prices being asked today are many hundreds of times over what they should be in terms of real and realistic worth. Sadly anything will sell at whatever anyone is prepared to pay and therein lies the root of the problem which then promotes fraud, lies, deceit and collusion.

    Would anyone buy a single skin, poorly built, concrete abomination with often makeshift temporary electrical supply, no natural gas, unmade roads, no title deed etc in their home Country – generally no, but I accept the deceit, lies and collusion together with rose tinted glasses and thoughts of sun, sea and Martini lured many into leaving common sense at home. Tragic – yes, needing exposing and punishing – yes, but sadly it doesn’t help those unfortunate to have fallen prey and I don’t see the EU as wanting to get involved in domestic remedies I’m afraid. Common sense must return.

  • Pantheman says:

    I am always amazed at these claims. From my own experience, the market is so skewed that finding and point of reference would be very, very difficult. And to say that prices have fallen by this and by that makes me think about the credibility of such reports.

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

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