By Staff Reporter
Property prices feel across the board in the second quarter of this year with Paphos recording the biggest drop, according to the latest RICS Property Price Index
Across Cyprus, residential prices for both houses and flats fell by 1.0 per cent and 1.1 per cent respectively, with the biggest drop being in Paphos (2.1 per cent for houses and 2.8 per cent for flats). Values of retail properties fell by an average of 3.0 per cent, whilst those of offices and warehouses fell by 2.2 per cent and 2.6 per cent respectively.
Compared to the second quarter of 2013, prices dropped by 7.8 per cent for apartments, 3.9 per cent for houses, 10.4 per cent for retail, 8.3 per cent for office, and 8.3 per cent for warehouses.
On a quarterly basis rental values decreased by 1.3 per cent for apartments, 0.3 per cent for houses, 4.3 per cent for retail units, 4.5 per cent for warehouses, and 1.0 per cent for offices.
Compared to the same quarter last year rents dropped by 7.6 per cent for flats, 7.9 per cent for houses, 16.6 per cent for retail, 11.6 per cent for warehouses, and 8.2 per cent for offices.
“The majority of asset classes and geographies continue to be affected, with areas that had dropped the most early on in the property cycle now nearing the trough,” the RICS report said.
It said that given prevailing economic conditions and the turbulence in Cyprus’ banking system, there was a lack of transactions during the quarter.
“Local buyers in particular were the most discerning as the increase in unemployment and the prospects for the local economy maintained the lack of interest. Furthermore, those interested were unable to access bank-finance or their deposits,” it added.