After four and a half years of declining prices, property across Cyprus has recorded the smallest quarterly fall since March 2013, indicating improved stability.
The recent Cyprus Central Bank Property Price Index showed that in Q2 2014, apartment prices fell by an average of 2.1% while house prices fell by an average of 1.8%. RICS Cyprus reported comparatively slower declines in September with their data showing that apartments fell by 1.1% and houses 1.0%,over the same period.
According to the Central Bank index, the largest quarterly decline in apartment prices was recorded in Famagusta, where they fell by 4.5% and Larnaca by 3%.
Elsewhere, apartment prices in Paphos fell by 2.8%, in Limassol by 2.1% and in the capital, Nicosia prices declined by 1.4%. The largest quarterly fall in house prices was recorded in Nicosia, where they fell 2.1%; Larnaca 1.9%; Limassol 1.9%; Famagusta 1.3% and 0.1% in Paphos.
The Land Registry recorded an increase in the number of property transactions throughout Cyprus which corresponds with the slowing of prices. According to their report, transactions during the second quarter of 2014 were up by 65.1% over the previous quarter.
Sales to Cypriot buyers increased by 80.6%, indicating improved affordability while foreign buyers rose by 33.2%, favouring apartments in coastal regions.
In September 2014, Moody's Investor Service announced that it has placed the long-term deposit ratings of the Bank of Cyprus on review for upgrade following the bank's successful completion of its €1bn capital increase.
It would appear that investor sentiment for Cyprus is slowly improving as the country's economy begins to stabilise. If improvement shows to be consistent over the next few quarters, Cyprus will start to rise through the ranks once more to re-emerge as one of Europe's most strategic financial hubs.
Article by +Roxanne James on behalf of Propertyshowrooms.com