Сentral Bank of Cyprus claims that property prices in Cyprus dropped so much that now one can buy it at prices of the end of 2006, writes ee24.com. According to the calculations of the main financial institution of the country, in Q1 2014 the annual decline in housing prices was 9.7%.
Houses and apartments in Cyprus are cheapening at an alarming rate. In Q2 2013 prices decreased by 6.1% y-o-y, in Q3 - by 7.2%, in Q4 - by 8.7%, and in Q1 2014 - by 9.7%. This is due to the effects of the banking crisis that erupted last March. If the decline continues, prices may revert to those of the end of 2005.
Over the past year house prices fell the most in Famagusta (-18.5%), apartment prices - in Larnaca (-12.4%). The least decline of house prices was in Limassol (-8%), of apartment prices - in Famagusta (-6.4%). Price increase was not recorded in any of the areas of the island.
Along with falling prices, the demand is recovering. In the first quarter Cypriots began to buy less (-10.8%), and foreigners more (+6.8%) than a year earlier. Sale of property in Cyprus grew in regions of Famagusta (+20%), Limassol (+19%) and Larnaca (1+0.2%), remained almost unchanged in Nicosia, but decreased significantly in Paphos (-33.6%). It is noteworthy that in Famagusta foreigners purchased 43 properties, while the locals - only 17.
Recall that recently the portal ee24.com published another report on prices in the first quarter by RICS.