Across Cyprus, residential prices for both houses and flats fell by 1.0% and 1.1% respectively, with the biggest drop being in Paphos (2.1% for houses and 2.8% for flats). Values of retail properties fell by an average of 3.0%, whilst those of offices and warehouses fell by 2.2% and 2.6% respectively.

Compared to the second quarter of 2013, prices dropped by 7.8% for apartments, 3.9% for houses, 10.4% for retail, 8.3% for office, and 8.3% for warehouses.

On a quarterly basis rental values decreased by 1.3% for apartments, 0.3% for houses, 4.3% for retail units, 4.5% for warehouses, and 1.0% for offices.

Compared to the same quarter last year rents dropped by 7.6% for flats, 7.9% for houses, 16.6% for retail, 11.6% for warehouses, and 8.2% 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.

Source: Cyprus Mail