Local
articles | 27 April 2015

Cyprus house prices slide 3.3% in late 2014

Residential property prices in Cyprus recorded one of the largest falls in the EU in the fourth quarter of 2014, according to data from the EU’s statistical service Eurostat.

Compared with the same quarter of 2013, house prices in Cyprus dropped by 3.3% — beaten only by Slovenia, where prices slid by 4.3%.

Moreover, the year-on-year drop in prices was bigger than in the third quarter, when prices in Cyprus fell by 1.7%.

Compared with the previous period, prices slid by 3%, having stagnated in the third quarter and actually risen by 1.5% in the second.

The only two countries to record a faster quarter-on-quarter slide were Latvia, which tumbled by 10.4% compared with the previous quarter, and Lithuania, where prices slid by 5.3%.

The performance in Cyprus is against the EU trend, which has seen a recovery in house prices. In the eurozone, prices rose by 1.1% over the year earlier in the fourth quarter, while for the EU as a whole the increase was 2.6%.

Compared with the third quarter of 2014, house prices dipped down by 0.1% in the eurozone but were stable for the EU as a whole.

The EU House Price Index (HPI) measures the price changes of all residential properties purchased by households (flats, detached houses, terraced houses, etc.), both newly built and existing, independently of their final use and independently of their previous owners.

The Member States’ HPIs are compiled by the National Statistical Institutes. The figures are not seasonally adjusted.

Meanwhile, the Royal Institute of Chartered Surveyors Cyprus Property Prices Index reported that in the fourth quarter residential prices fell by 1.1% for houses compared with the previous quarter and by 0.7% for flat.

The biggest fall in house prices was in Famagusta (3.6%) while the biggest drop for flats was in Nicosia (1.1%).

“Nicosia is clearly feeling the impact on the government and banking sector (the two sectors which dominate the local employment market), whilst other cities are progressively bottoming out,” RICS said.

The average price of an apartment in Cyprus was €101,766 in the fourth quarter according to RICS, while the average price of a house was €326,749. The average monthly rental was €325 for an apartment, €534 for a house, €1,286 for offices, €1,564 for retail property and €4,349 for warehouses.

Source: InCyprus

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