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Home prices fell 1 per cent in the first quarter of 2015 compared to the quarter before and 6.5 per cent compared to the respective quarter of 2014, the Central Bank of Cyprus said.

Prices for houses and flats fell 0.8 per cent and 1.5 per cent in January to March respectively, the Central Bank of Cyprus said in a statement on its website today. Home prices fell a quarterly 2 per cent and an annual 8 per cent in the last quarter of 2014.

“Home prices returned to the average levels of 2006, the year in which the excessive demand for housing loans started which led to the sectoral overheating,” the central bank said.

Home prices in the Famagusta area rose 0.7 per cent in the first quarter compared to the quarter before, the central bank said. Home prices in both Limassol and Larnaca fell 1.3 per cent while in Nicosia and Paphos they dropped 1 per cent and 1.2 per cent respectively.

Home prices in Larnaca dropped 7.3 per cent in January to March compared to a year ago, which is the largest drop island-wide, followed by Nicosia with 6 per cent, Limassol with 6 per cent, and Famagusta and Paphos with 3.5 per cent and 3.3 per cent.

By Stelios Orphanides