Property prices and rents in cyprus continue downward trend

Residential property prices and rents continued to fall in Cyprus in the third quarter of 2011, according to the quarterly index from the Royal Institution of Chartered Surveyors.

Property prices have been affected by financial problems in the eurozone and by an explosion at the Evagelos Florakis Naval Base which severely damaged the country’s main electric power station.

‘The combination of the turmoil in Greece with this unfortunate event caused severe disruptions in daily lives and a loss of people’s confidence in the abilities of the state. In turn, the explosion led to numerous accusation and discussions by parliamentarians and government officials which escalated causing political instability,’ said Pavlos Loizou of RICS Cyprus.

‘Whilst the first and second quarters saw some signs of muted economic growth, the third quarter saw investors postpone their decision making and banks retrenching by limiting the amount of credit available. In turn this led to a low transaction turnover and to reduced interest, especially by local buyers, as they were affected by the increased tension between government and parliament,’ he added.

Source: PropertyWire.com