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CYPRUS: Residential property prices continue downward path

26 June, 2013

Residential property prices (houses and apartments) continued the downward path in the first quarter of 2013, recording a decline for 13 consecutive quarters.

According to figures compiled by the Central Bank of Cyprus, house prices index registered in Q1 2013 a decline of 1.6% compared to Q4 2012, whereas on an annual basis, ie compared with Q1 2012, the index recorded a decline of 5.4%.

House prices registered a decline for ten consecutive quarters, while apartment prices registered a downturn for 13 consecutive quarters.

The CBC expects that prices will continue to decline as a result of the Eurogroup decisions on Cyprus and the limited liquidity.

"The continued uncertainty following the Eurogroup decisions on Cyprus and the limited liquidity in the banking sector are expected to affect the course of the prices in the coming quarter," it notes.

The biggest quarterly decline in house prices was registered in Larnaca with 3.5%, while Paphos and Famagusta, which mainly concern holiday houses, recorded stabilizing trends, as prices declined by 0.3% and 0.2% respectively.

With regard to apartments, the biggest downturn in Q1 2013 was registered in Larnaca with prices declining by 5.6, which according to the CBC was the biggest since Q1 2011. House prices in Larnaca declined by 1.9%.

In Limassol apartment prices were stabilized as they registered a marginal decline of 0.1% where house prices recorded a reduction of 1.3%. Apartment prices in Famagusta declined by 1.2%, while house prices rose by 1.0%.

The district of Paphos registered a similar picture, with house prices rising by 1.1% and apartment prices declining with 1.0%.

In the capital Nicosia, house prices declined by 2.5% which exceeded the decline in apartment prices which recorded a reduction of 1.0%.