According to the latest Q2 2015 Cyprus Property Price Index by RICS, property prices and rents continue to fall in most Cypriot towns and resorts.

However, during the second quarter of 2015 the Cyprus economy showed some signs of stability, with the economy’s performance being better than expected and tourism mildly outperforming forecasts. Unemployment remained at a historical high level of around 16% and discussions were ongoing regarding the privatisation of some state owned enterprises.

There were few transactions during Q2 although volume was higher than in Q2 2014. Despite this, the Index recorded falls in most cities and asset classes, with significant falls being recorded in Nicosia and Larnaca.

Across Cyprus, movements in property prices appear mixed as residential prices for flats fell by 0.4% and 0.3% for houses. The biggest drop was in Larnaca (-1.2% for flats) and (-3%) for houses, which reflects an annual rate of -4.8% and -12% respectively.

Rental prices across Cyprus decreased also in Q2, (-0.3%) for apartments and (-2%) for houses.

However, the report noted that both Paphos and Famagusta are showing some signs of price stability.