The RICS Cyprus Property Price Index, which reports quarterly on real estate values and rents in the major urban areas of the island, reveals that property prices on the island continued to fall over the first quarter of 2014.
Across Cyprus, prices of residential houses and apartments fell by 1.4% and 2.6% respectively during the first quarter of 2014.
Famagusta saw the biggest drop with house prices falling by 4.0% and apartment prices falling 9.3%. Across the island the values of shops fell by an average of 1.7%, while those of offices and warehouses fell by 1.4% and 0.9% respectively.
Annualised property price changes
Compared to the first quarter of 2013, the average price of a residential apartment has dropped by 10.7%, while the average price for a house has fallen 7.8%
Commercial property prices have fallen even more dramatically, with the price of retail units falling 14.8%, while the price of offices and warehouses have fallen by 10.4% and 11.4% respectively.
Gross rental yield
Gross rental yields recorded a quarterly drop of 1.4% for apartments, 1.6% for houses, 1.3% for shops, 3.1% for warehouses, and 1.2% offices.
Compared to the first quarter of 2013, rental yields have fallen 11.3% for apartments, 12.6% for houses, 23.3% shops, 15.3% for offices and 14.0% for warehouses.
Commenting on the figures MRICS Chartered Surveyor Charalambos Petrides said “it seems property sales in 2013 hit rock bottom but it’s clear that in 2014 real estate sales will move upwards.”
But he said property values are expected to continue on a downward spiral for the first six months with the exception of real estate in prime locations.
Outline of properties used to calculate the index
Apartments: Residential, two bedroom, 85sqm, Medium quality.
Houses: Residential, three bedroom with garden, Semi-detached, 250sqm, Medium quality.
Retail: High-street retail, 100sqm ground floor area with 50sqm mezzanine.
Warehouse: Light industrial area, 2,000sqm, which includes 200sqm office space.
Office: Grade A, City centre location, 200sqm
(All property types used to calculate the index are: freehold, have all licences and permits in place, have their Title Deeds, are subject to VAT and are in a good state of repair).
The estimation of price levels is carried out by accredited RICS property professionals who are active in the relevant markets.
The methodology underpinning the RICS Cyprus Property Price Index was developed by the University of Reading UK and may be viewed by clicking here.