Residential property prices in Cyprus continued to fall during the first quarter of 2012, albeit at a slower rate, according to the latest data from the Central Bank.

The figures reveal that the average price of a home in Cyprus depreciated by 1% quarter-on-quarter compared to -1.8% in the previous quarter, led by falls in Paphos and Famagusta, were prices fell by 3.1% and 2.4%, respectively. Year-on-year average property prices dropped by 4.3%.

But despite the slowdown in property price falls, the Central Bank dashed any hopes of a market recovery, indicating that prices are actually likely to fall further, due to the fragile state of the economy, a lack of mortgage liquidity and low demand from homebuyers.