Cyprus Property Price Index records significant reductions

During the third quarter of 2013, the Property Price Index records significant reductions nationwide in all major urban areas, with sales prices and rents dropping, said the Royal Institution of Chartered Surveyors (RICS) Cyprus.

According to the index, Nicosia and Limassol are in the most unfavorable position, as these were the least affected areas until the second half of 2012.

Across Cyprus prices for houses and flats presented a quarterly decrease of 1.0% and 2.7% respectively. The largest decrease was recorded in Limassol (3.0% for houses) and Larnaca (5.2% for apartments).

Prices fell by an average of 2.9% and 3.6% for offices and by 4.3% for warehouses.

Compared with the corresponding quarter of 2012, apartment prices fell by 14.6%, prices for houses dropped by 11.1%, for stores by 20.2%, for offices by 13.2% and for warehouses by 16.2%.

The average rental rate across Cyprus presented a quarterly decline of 5.2% for apartments, 5.4% for homes, 12.0% for stores, 7.1% for warehouses and 8.8% for offices.

Rental rates in the third quarter of 2013 declined by 4.1% for apartments, 4.9% for houses, 9.1% for stores, 4.5% for offices and 3.1% for warehouses, compared with the third quarter of 2012.

Sales prices and rents in Famagusta recorded a marginal increase, with the prices stabilizing at low levels in this area.