DURING the third quarter of 2015, the Cyprus Central Bank’s (CBC) general housing price index, which includes houses and apartments, fell by 0.3%, compared with falls of 0.4% and 1.0% during the previous two quarters, indicating that prices may be stabilising.
Over the quarter house prices fell by 0.7%, while apartment prices rose 0.8%. (An increase in apartment prices was last recorded in the fourth quarter of 2009.)
On an annual basis the general housing price index fell 3.7% compared with an annual fall of 5% over the previous quarter, with house prices and apartment prices falling by 3.9% and 2.8% respectively, compared with annual falls of 4.6% and 6.2% in the second quarter.
The CBC reports that “The recovery of the economy, improving financial conditions, reduced lending rates and progress in structural changes to improve the framework for issuing title deeds are developments that are expected to have a positive impact on demand for real estate and on house prices.”
However, the report omits to mention of the possible impact of foreclosures on the property market.
Quarterly winners and losers
Famagusta saw the largest quarter fall in the general housing price index (-1.6%) followed by Nicosia (-1.3%) and Limassol (-0.1%). In contrast the price index in Larnaca and Paphos rose by 1.2% and 0.2% respectively.
Over the quarter house prices fell by 5.6% in Limassol and 0.6% in Famagusta; house prices in Limassol, Larnaca and Paphos fell by 5.1%, 2% and 2.3% respectively.
Over the quarter apartment prices fell 1.5% in Famagusta and 0.6% in Nicosia, while apartment prices in Limassol, Larnaca and Paphos rose 2.1%, 0.3% and 1.5%, respectively.