ACCORDING to figures released on Thursday by the Cyprus Central Bank, property prices have dropped for a ninth consecutive quarter and have now returned to their 2007 levels.
But despite the downward trend, residential properties are still 32% more expensive than they were in 2006.
The downward pressure on prices is due to a combination of oversupply and liquidity problems and is most evident in the holiday home market as shown by the price falls in Paphos, Larnaca and Famagusta.
According to Central Bank data, residential property prices (houses and apartments) fell by by an average of 1% during the first quarter of 2012.
With the exception of Paphos and Famagusta, where prices fell by 3.1% and 2.4% respectively, price falls during the first quarter were slightly less than those experienced in the previous quarter.
However, there has been a slight slowdown in the rate at which prices are falling. This is partly attributable to the implementation of the new legislative measures introduced towards the end of last year that were aimed at stimulating the housing market.
On an annual basis, residential property prices have fallen by 4.9%. Apartment prices have dropped 4.3% and house prices have fallen by 5.4%.
The highest annual decrease has been in Paphos, where prices have fallen by 10.6%, while the lowest price falls have been in Nicosia, where they are down 3.2%.
According to Central Bank, the prospects for quick recovery in the housing market are not promising. This is due to the lack of liquidity in the market coupled with the measures being discussed between Cyprus and the troika to consolidate the island’s ailing economy.