articles | 27 June 2014

Drop in Q1 property prices

Annualised house prices in Cyprus fell by 7.8% during Q1 2014, while flat prices suffered even bigger losses by 10.7%, according to the property price index of the Cyprus branch of the global body of chartered surveyors (RICS).

The index shows an even more dramatic annual drop in shops – 14.8% – and offices, with 10.4%, while warehouse prices fell by 11.4%.

On a quarterly basis, house and flat prices fell by 1.4% and 2.6% respectively, with the Famagusta district showing the highest decrease – 4.0% on houses and 9.3% on flats.

Shop prices fell by an average of 1.7% Cyprus-wide, offices by 1.4% and warehouses by 0.9%.

Cyprus-wide, rents recorded a quarterly drop of 1.4% for flats, 1.6% for houses, 1.3% for shops, 3.1% for warehouses, and 1.2% for offices.

Compared to the first quarter of 2013, rents fell by 11.3% for flats, 12.6% for houses, 23.3% for shops, 15.3% for offices and 14.0% for warehouses.

On behalf of Cyprus Surveyors’ Association, Charalambos Petrides said that the property market appears to have hit rock bottom in 2013, and asa result 2014 should see a rise in property sales.

With regard to property prices in 2014, the falling trend is expected to continue at least over the first half, with the exception of specialised types of property, including income property in central areas or landmark projects, mostly on the beachfront.

“Limited liquidity available in the market, coupled with high interest rates, appear to impede the stabilisation of the property market,” he concluded.

Source: Cyprus Mail

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