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Property prices have reverted to 2006 levels according to figures released by the Central Bank of Cyprus (CBC).

With the Q1 2014 decrease, property values have now been on a downward trend for the 16th consecutive quarter.

The CBC’s Residential Property Price Index indicates that property prices in Q1 dropped by 2.7% compared to 2.6% in the final quarter of 2013, while prices of apartments and houses both fell by 2.7%, compared to 3% and 2.2% respectively in the previous quarter. 

Annually, figures show a marked drop of 9.6% compared to 8.7% in Q4 of 2013, which reflects the cumulative reductions of the four quarters after the bail-out in March 2013.

House prices fell 9.4% on an annual basis and apartment prices by 10%, while prices overall have dropped 26.3% since 2008 when they had reached their peak. 

Despite the reduction in recent years, prices are 12.9% higher than the first quarter of 2006 and closer to prices towards the end of 2006.

Apartment prices decreased in all districts, save Paphos, with Nicosia and Larnaca prices having fallen 2.8% and 3.4% respectively, Limassol prices by 3.7% and Famagusta by 2.6%. Prices of apartments in Paphos increased 1.2%, marking the first positive change in prices in Paphos since 2010.

However, house prices fell most in Paphos (3.7%) and least in Limassol (2.2%), while in Nicosia, Larnaca and Famagusta, prices in the first quarter were reduced by 2.5%, 2.5% and 3.1% respectively. 

The largest annual drops were noted in house prices in Famagusta (18.5%) and apartment prices in Larnaca (12.4%).

The smallest annual reductions were apartment prices in Famagusta (6.4%) and house prices in Limassol (8%). Apartment prices in Nicosia, Limassol and Paphos fell 9.3%, 11.3% and 6.9% respectively on an annual basis, while house prices in Nicosia, Larnaca and Paphos also dropped 8.5%, 8.6% and 9.1% respectively.