The latest (Q3 2013) quarterly Cyprus property price and rental index by Leaf Research has reported significant price falls across Cyprus’ major urban areas, with prices and rents falling across four out of five districts.

Compared to Q3 2012 apartment prices dropped by 14.6% and house prices slumped by 11.1%. For commercial property, retail property prices tanked by 20.2%, offices by 13.2% and warehouses by 16.2%.

The volume of property transactions is down by 38% year-on-year and regionally it fell by 52% in Nicosia, 41% in Limassol, 37% in Larnaca and by 13% in Paphos.

With regards to expectations moving forward, Leaf Research report: ‘With activity and prices in the main commercial centres of Nicosia and Limassol experiencing significant declines, the re-pricing in these markets is expected to accelerate in the coming months, mainly as a result of the increase in unemployment and the decrease in salaries of public sector and bank employees.

‘The other cities will continue to experience low levels of demand, as they are reliant on overseas markets. Whilst certain areas are oversupplied, there have been few distressed sales, something which is likely to change as banks begin to foreclose and offload repossessed properties.’