If you’ve been waiting for the right opportunity to buy or sell a property in Cyprus online, well, you’re in luck, as home prices in Cyprus have bottomed out.
Apartment prices rose by 3.3 percent in Paphos this quarter and by 0.4% over the previous year. Similarly, home prices have risen across all regions in Cyprus.
Home prices in Cyprus rose by an incredible 22% in 2007, and reached their peak towards the end of 2008, till the fall of the US housing market because of the sub-prime mortgage crisis. Since then, they have been in a state of constant decline.
The fall was extraordinary to say the least. Home prices have declined by 31.5% since 2007, as per the Central Bank index. Famagusta witnessed the worst fall in property prices of 41%, closely followed by Lanarca, where home prices declined by 34.7%.
Nicosia saw a decline of 31%, while Limassol experienced a 27% drop. Paphos was hit badly as well, with the property market there losing 26.6% in value.
It is possible that property prices in Cyprus may have fallen as far as they could. There’s no risk of them falling any further than this.
As of this moment, the property index for Cyprus is the same as it was in 2006 – 73.2. This means property prices are at the same level as they were in 2006.
The Central Bank of Cyprus uses what is called as a hedonic index to explain the variation in prices. The Central Bank of Cyprus explains this index as being necessary to “to disentangle that part of the price variation which is: a) due to changes in the mix of characteristics of the property; and b) caused by inflationary factors and market conditions”.
The data published by the Royal Institute of Chartered Surveyors (RICS) is very clear about where property prices in Cyprus stand. According to RICS, property prices have fallen by almost 40 percent since 2009. RICS estimate apartment prices in the island nation to have fallen by 45 percent since their peak in 2008.
The average price of a typical two-bedroom apartment in Cyprus is currently €101,327. It was €168,466 towards the end of 2009. This should give you an indication of how much prices have fallen.
If you’re looking for a cheap property for sale in Cyprus, you should look at Famagusta as an option. Here the average apartment prices were €83,626. The most expensive region in Cyprus is Larnaca, where the average apartment prices have been €115,936. The average apartment prices in Limassol have been €104,575, in Paphos, €95,888 and in Nicosia, €106,607.
Nobody has been able to decipher the rationale behind the high apartment prices in Larnaca, as the town does not really receive as many tourists as some of the other regions in Cyprus. It does have a decent airport and a nice beach.
Another reason could be that there are a number of upper-class public sector employees who live here. So the people here have higher disposable incomes compared to those in other regions of Cyprus.