It is for the first time that price fall has been registered in Cyprus since August 2005. According to BuySell Home Price Index, the prices faced a 1,7% decrease in comparison to December 2008.

During the first couple of months of 2009 the island real estate prices have been a subject of the overall price level float. This has led to some uncertainty in the market and in the local economy. Thereby, prices has gone down 1,5% in January, has gone up 2% in February and went down again in march by 2,2%.

Nevertheless, the market has started pulling it together in March. A growing local demand has been noted towards the apartments and houses in Nicosia, villas in Protaras and Aya Napa and houses and apartments in Limassol. According to the opinion of Mr Yorgos Muskidis, the president of the construction association, Russians are mostly interested in Limassol estates. Mr Muskidis has noticed lack of interest from the locals towards apartments and houses in Larnaca and Pafos.

Cypriots are the ones facilitating economic recovery while hunting for bargains in the local real estate market. Banks are reconsidering its strategy and are opening up new mortgage programs. Government has announced its intention to revive the construction sector by initiating the so-called big projects.

From January to March 2009, according to BuySell, the real estate prices have dropped by 1,7% in comparison to December 2008 and by 2,2% in comparison to the same period in 2008.

BuySell affirms that the first time the real estate prices went down was in 2005. The average estimated house price in Cyprus in March 2009 was 187 053 Euro.

Mr Yorgos Mavreas, property valuator, says that house and apartment prices have dropped up to 15% in some areas of Cyprus. For example, in Tsery, Kokkina and Lakatamia. On the secondary estate market prices have dropped for 15-20%. The only exception is Limassol.