Prices in the Cyprus property market keep dropping
This article was published on Monday 01 April, 2013.
The Cyprus branch of the Royal Institution of Chartered Surveyors has recently publicized the results of its Cyprus Property Price Index, a report which has been carried out in collaboration with the Cyprus Association of Certified Quantity Surveyors and Construction Economists and the Cyprus Association of Valuers and Property Consultants. It is interesting here to note that the latter has called upon its members, in the light of recent events in the economy of Cyprus to suspend their operations and not carry out valuations either for individuals or for financial institutions until things in the Cyprus economy become clearer. This is indicative of the confusion and uncertainty that prevails both in the property market and the Cypriot economy as a whole, so patience and caution are the two elements that are needed to face the situation.
Returning to the Property Price Index, it is noted that it is based on a methodology that was devised in the University of Reading in the United Kingdom and the index monitors both the market value (i.e price) and the market rent of real estate properties of all types and in all towns of Cyprus.
During the fourth quarter of 2012 the Index records significant reductions in all major urban areas, with a fall in both the sales prices and the rents. The areas of Lefkosia (Nicosia) and Lemesos (Limassol) seem to have been hit the hardest this time round, since they were the areas least affected by prices dropping until now. The quarterly drop in the prices of residential properties (apartments and houses) was 3, 1% for apartments and 1, 1% for houses. The biggest fall in the prices of apartments is recorded in the Famagusta area with 7,0%, while the biggest fall in the prices of houses is recorded in Limassol with 2,5%.
The average drop in the selling price for retail shop was 3,8%, the fall in the price of office spaces was on average 1,8%, while for warehouses it was 1,6%. When compared to the fourth quarter of 2011, apartment prices fell by 7,9%, house prices by 5,7%, retail shop prices by 15,5%, office space prices by 10% and warehouse prices by 9,3%.
During the fourth quarter of 2012 across Cyprus, rental values decreased by 3.3% for apartments, 2.6% for houses, 5.5% for retail units, 4.3% for warehouses, and 2.5% for offices.
Compared to the fourth quarter of 2011, rents dropped by 7.6% for apartments, 8.1% for houses, 14.4% for retail units, 9.1% for warehouses, and 11.8% for offices.