Rics: prices in cyprus continue to fall

THE NINTH edition of the RICS Cyprus Property Price Index reports that property prices in the Island's main urban areas continued to fall during the fourth quarter of 2011 although there was a small increase in apartment rental values.

Commenting on the latest Index Pavlos Loizou MRICS, Board member of RICS Cyprus, said "During the fourth quarter of 2011 Cyprus' economy bore the consequences of the decoupling of the Greek economy, the slowdown in mortgage and corporate lending, the increased cost of electricity, and the rising rate of unemployment.

"The combination of the above, along with the decrease in salaries of government workers and uncertainty surrounding Cyprus' banking system, led to a decrease in retail spending and a slowdown of the economy".

"Whilst the first and second quarters saw some signs of muted economic growth, the third and forth quarters saw investors postpone their decision making and banks retrenching by limiting the amount of credit available. This led to a low transaction turnover and to reduced interest, especially by local buyers, as they were more affected by the increase in unemployment and the decrease in credit."

Source: Cyprus Property Buyers