According to the Royal Institution of Chartered Surveyors – Cyprus (RICS Cyprus), property prices fell on the island in the fourth quarter of 2011 with Limassol and Paralimni being the hardest-hit areas.

Prices of apartments and houses fell quarterly 1.3 per cent and 1.6 per cent respectively. However, rental values for apartments island-wide rose slightly showing a 1.4 per cent rise quarterly. The biggest rises were recorded in Paphos and Famagusta. Rents fell 0.1 per cent for houses.

Compared to the same quarter in 2010, rents dropped overall 4.6 per cent for apartments and 0.8 per cent for houses. The latest RICS Cyprus report showed that the average price of an apartment in Cyprus was €134,662 with rent at €427 per month.

The average price of a house is €407,455 and monthly rent stands at €684.
“During the fourth quarter of 2011 Cyprus’s 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’s banking system, led to a decrease in retail spending and a slowdown of the economy,” Pavlos Loizou MRICS, Board member of RICS said of the latest index.

Meanwhile, plans for the creation of a €600 million commercial centre for showcasing Chinese products and services in Cyprus look solid following the signing of an agreement between airport operator, Hermes, and Chinese firm, Far Eastern Phoenix Ltd. The investment represents the biggest of its type in Cyrpus. The Chinese company plans to develop the old Larnaca airport premises and area as a regional centre for potential partners from Europe, the Middle East and Africa. The agreement says that the firm will take over management of the area for the next 19 years, with the possibility of extending it to 50.

Search for properties for sale in Cyprus on Rightmove Overseas. If you’re planning to buy in or move to Cyprus and need to transfer a large sum of money, remember to use a currency specialist to exchange your pounds into euros. For more information contact Smart Currency Exchange.

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