Property prices in Cyprus have fallen between 30 and 40 per cent in just under five years, new figures show.
According to the latest set of figures released by the Royal Institute of Chartered Surveyors (RICS) in Cyprus, average house prices on the island fell by 1.1 per cent in the final quarter of 2014, while apartment prices decreased by 0.7 per cent. Taken on a year by year basis, the average price of a Cypriot apartment has fallen 5 per cent since the fourth quarter of 2013, and the average price of a three-bedroom home has plummeted by 5.4 per cent.
This means that since the first RICS index was published at the start of 2010, house prices in Cyprus have fallen by an average of 30 per cent and apartment prices by 40 per cent.
The largest quarterly falls recorded in the most recent quarter were seen in Famagusta, where house prices fell by 3.6 per cent, and in Nicosia where apartment prices tumbled 1.1 per cent.
However, the RICS report states that there are small signs emerging that a recovery – or at least a levelling off – of the country’s housing market may not be far off. “During the fourth quarter of 2014 the Cyprus economy showed some signs of stability, with the economy’s performance being better than expected and tourism mildly outperforming forecasts,” it revealed.
“Unemployment remained at a historical high level, stabilised at around 17 per cent, and discussions were ongoing regarding privatisations of state owned enterprises and the foreclosure bill. Given prevailing economic conditions and the turbulence in Cyprus’ banking system, there were few transactions during the quarter although volume was higher on a year on year basis.”
What’s more, according to Cypriot property firm Fitzgerald Marketing, their sales increased by 20 per cent in 2014 when compared with the previous year. Perhaps surprisingly, the firm say that this increase has been buoyed by domestic buyers rather than international ones, with overseas buyers still cautious about purchasing in the country at a time of such economic uncertainty, in spite of the extremely low property prices.