Property prices in cyprus show signs of stability

Photo: Martha de Jong-Lantink

The Cypriot economy and housing market have been some of the worst hit by the financial crisis in recent years, but property prices on the island are showing signs of stabilising, according to the latest RICS index.

House prices have fallen by more than 30 per cent since 2010, with apartment prices falling by an even more severe 40 per cent. They continued to drop in the third quarter of 2015, with apartment prices dipping 0.4 per cent and house prices dipping 0.5 per cent. Both decines, though, are far less severe than the drops recorded in previous years.

Famagusta led the way with a 1.2 per cent decrease in flat values, while Limassol saw prices fall 3.2 per cent. But if performance varies between regions, there are some areas of Cyprus where prices are now showing signs of stability - Paphos, Larnaca and Famagusta are all highlighted by the RICS as "progressively bottoming out". Nicosia, meanwhile, so prices edge down just 0.3 per cent.

Across Cyprus, on a quarterly basis, rental values increased by 0.3 per cent for apartments, 1.5 per cent for houses and 2.6 per cent for office. A decrease of 1.1 per cent for retail units was noted and 0.1 per cent for warehouses. Compared to Q3 2014, rents dropped by 1.5 per cent for flats, 0.5 per cent for houses, 4 per cent for retail, 2.5 per cent for warehouses, and 0.2 per cent for offices.