Prices and rents fall for property in Cyprus

  • 13 years ago
  • Uncategorized

research has found that property prices in Cyprus continued to fall in the
first three months of 2011 with rents on the island also slipping as landlords
struggle to attract new tenants. 
The fall has been attributed to the ongoing uncertainty regarding the
Greek economy and a continuing lack of credit availability.

Prices and rents for property in Cyprus fall
substantially over last year

sixth issue of the Royal Institute of Chartered Surveyors (RICS) Cyprus
Property Price Index found that prices for houses fell by 1.6 per cent in the
first quarter of 2011 with values of apartments falling by 0.9 per cent over
the same period.

saw the biggest drop in house prices (2.9 per cent) whilst Paphos saw a 4.1 per
cent fall in the value of apartments. 
Commercial property in Cyprus fared slightly better, with retail
properties falling by an average of 0.8 per cent whilst the values of offices
and warehouses remained broadly stable.

the last year, prices of houses have fallen by an average of 7 per cent while
apartment values have fallen by 8.3 per cent.

over the last twelve months rents have dropped by 6.1 per cent for apartments
and 10.7 per cent for houses.  Cyprus Property News reports that ‘the
quarterly change in capital and rental values shows that all aspects and
geographies of the property market are now affected, and that landlords are
lowering their rents in order to attract tenants.’

Loizou, board member of RICS Cyprus, said Ã¢â‚¬Å“During the first quarter
of 2011 Cyprus bore the brunt of the consequences of the increased uncertainty
regarding the Greek economy and the, partly consequential, series of downgrades
by rating agencies of Cyprus and of Cypriot banks.

“Whilst the first quarter saw
some signs of price stabilisation and muted economic growth, the lack of credit
and the on-going events in Greece affected sentiment. In turn this led to a low
transaction turnover and to reduced interest by local buyers.”

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