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Thursday 29th October 2020
Home Investor Centre Upward trend in property price index slows

Upward trend in property price index slows

The Cyprus Residential Property Price Index (RPPI) continued its upward trend albeit with a declining pace, affected by the reduced demand from foreign investors due to stricter provisions introduced to the Cyprus Investment Programme (CIP), the Central Bank of Cyprus (CBC) said.

Moreover, the CBC says that the reduced both domestic and foreign demand for housing in the first quarter of 2020 “shows the uncertain course in the real estate sector due to the expected impact of the lockdown measures aiming to contain the spread of the coronavirus pandemic.”

According to the CBC the RPPI in the last quarter of 2019 continued its upward trajectory, marking a quarterly increase of 0.3% compared with an increase of 0.7% the previous quarter, with the slowdown affecting both houses and apartments.

The slowdown is more pronounced in the apartments index which in the last quarter of 2019 increased by 0.5% over the previous quarter, compared with an increase of 1.5% in the third quarter. The index for house prices in the last quarter of 2019 remained essentially unchanged marking an quarterly increase of 0.2% compared with 0.3% in the previous quarter.

According to the CBC data, the largest quarterly reductions were marked in the prices of apartments and houses in the district of Paphos with 3.0% and 0.9% respectively, while prices in the districts of Larnaca and Famagusta marked quarterly reductions following the increase in the last quarters.

On annual basis the RPPI increased by 2.2% in the last quarter of 2019, albeit in slower pace compared with the two previous quarters which marked an increase of 2.8%. Apartment prices rose by 4.1% and house price rose by 1.5%. The largest annual increase was recorded in Famagusta with 3.3% and for apartments in Limassol and Larnaca with 7.6% and 7.4% respectively, the CBC said.

“The slowdown in the RPPI is associated with the decline in demand from foreign investors due to stricter criteria to the CIP,” the CBC said, adding that “Cypriot buyers gave significant backing to the real estate market in 2019 which will is expected to continue due to the impact of the coronavirus pandemic.”

(Cyprus News Agency)

2 COMMENTS

  1. You keep reporting on sales quotas of properties.I can’t understand that noone is concerned about the depilsted state of some buildings in highly priced areas in Limassol.

    Isn’t there any law that forces the owners, almost all of them got title deeds, to immediately repair the building whose facade has 5 cm cracks with thevconcrete Steele already exposed.

    I am tired of being told that owners should organize renovation, they are too ignorant and inactive, or uncapable of doing so. They are content with getting good rents from this 5 story block of flats in this prime location near the beach and Pappas Hypermarket, a sought after area by Russians, surrounded by newly built block of flats. The state of this building is not only an eye sore, but a real danger to the tenants.

    Tell me the way to enforce renovation, please, I appreciate

    It can’t be that the government turns a blind eye to this danger!

    • Dear Evelyn

      If the building permit for the construction of the building was issued after after 12.2.1993 and it consists of 5 or more units, it’s considered to be a jointly-owned building. Such buildings are required (by law) to have a Management Committee to insure, maintain and repair the building and look after its day-to day running. Each owner pays a contribution towards the insurance, etc. of the building.

      If any owner fails to pay their fair contribution, the Management Committee may take legal action against them.

      For buildings issued with a building permit prior to 12.2.1993, and unit owner may apply to the Land Registry to have the building registered as a jointly-owned building.

      If the owners are unable/unwilling to form a Management Committee, you can apply to the Land Registry to manage the building.

      From what you say the building is in a very poor, possibly dangerous, condition. As far as I am aware there is no law that will ‘force’ the owners to renovate the building and I suggest you take legal advice on the matter how best to proceed.

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