Cyprus Property Price Index Q4 2017 Prices as at 31/12/17

Cyprus Property Price Index Q4 2017 Prices as at 31/12/17

Real Estate Friday, 15 June, 2018

This is the thirty-third publication of RICS’ Cyprus Property Price Index, a quarterly price and rental index which is based on methodology produced by the University of Reading, UK. The Index tracks property and rental prices across all districts and main property types.

Introduction & Commentary

During the fourth quarter of 2017 the Cyprus economy showed further signs of recovery, with a seasonally adjusted quarterly GDP growth of 3.9% and an annual seasonally adjusted GDP growth of 3.9%. Unemployment remained at relatively high levels ca 11.3% (from the high levels of 17%). The improved confidence in the Cyprus banking system and the marginally improved availability of finance have consequently assisted in a relatively higher transaction volume during the quarter, which further enhanced market sentiment. However, the issue of NPLs and DFAS by most banks continue to be present in the market.

Market Capital Values

The Property Price Index has recorded increases on an annual basis in all cities and asset classes, with significant increases being recorded in all Districts.

Market Rental Values

Across Cyprus, on a quarterly basis rental values increased by 2.9% for apartments, 1.9% for houses, 0.6% for retail, 2.5% for offices and 0.2% for warehouses. Compared to Q4 2016, rents increased annually by 13.7% for flats, 8.2% for houses, 5.9% for retail, 19.2% for offices and for warehouses 1.8%. All asset classes have shown a consecutive quarterly growth.

Appraisal based initial yields

At the Q4 of 2017 average gross yields stood at 4.3% for apartments, 2.2% for houses, 5.5% for retail, 4.3% for warehouses, and 5.1% for offices. The investment yields are relatively stable with slight improvement is the Office sector noted after a long time of yields of 4.4%-4.5%.

Summary

Across Cyprus, residential prices for both houses and flats increased on a quarterly basis by 0.8% and 1.4% respectively, with the biggest increase being in Larnaca with quarterly increase of 2.7% for flats and in Limassol with a quarterly increase of 1.5% for houses.

Values for holiday homes on a quarterly basis across Cyprus increased by 0.4% for flats and 0.3% for houses. Paphos showed the highest quarterly increases for holiday apartments with an increase of 1.33% and Paralimni for holiday homes with an increase of 0.9%.

Across Cyprus, on an annual basis (compared to Q4 2016), flats increased by 7.1%, houses by 4.3%, offices by 8.3%, warehouses by 4.4% and retail by 3.1%.

Across Cyprus, on an annual basis for flats and houses the highest increase was in Limassol with 11.1% and 12.6% respectively, for offices Nicosia with 17.7%, for warehouses and retail the highest increase was in Nicosia with 9.3% and 4.2% respectively.

Source: RICS Cyprus

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Cyprus Property Price Index Q4 2017 Prices as at 31/12/17
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