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Cyprus property prices on the rise

Cyprus property prices are continuing to rise, according to the thirty-first publication of the RICS Cyprus Property Price Index with apartment and house prices maintaining a steady growth.

Cyprus property price changesTHE THIRTY-FIRST publication of the RICS Cyprus Property Price Index reports that the average price of residential apartments and houses across the island rose by 1.5% and 1.6% respectively during the first quarter of 2017.

The largest increase was in Limassol where the prices of both apartments and houses rose by 3.8%.

Holiday homes also increased in value over the quarter with holiday apartments rising by 2.6% and holiday houses by 1.9%.

Limassol saw the highest rise in holiday apartment prices at 4.2%, while Paphos saw the highest rise in holiday houses at 3.0%.

During the second quarter of 2017 the Cyprus economy showed further signs of stability, with a seasonally adjusted quarterly GDP growth of 0.9% and an annual seasonally adjusted GDP growth of 3.5%. Unemployment remained at relatively high levels, on a continued downwards trend to around 10.8% (from the high levels of 17%).

Given prevailing economic conditions and the marginally improved confidence in the Cyprus banking system, there are relatively higher transactions during the quarter and improved market sentiment. Financial institutions, despite of their NPLs, have been more willing to provide access to finance and there is an increasing interest from locals.

Cyprus property prices

On an annual basis the Cyprus Property Price Index recorded increases in all in all cities and asset classes, with significant increases being  recorded  in  Limassol,  Nicosia  and  Larnaca,  whilst Paphos and Paralimni have shown smaller annual increases.

Apartment prices rose by 6.2%, houses prices by 4.7%, office prices by 1.6%, warehouse prices by 0.2% and retail prices by 2.0%

Rental values

Across Cyprus, on a quarterly basis rental values increased by 3.0% for apartments, 1.0% for houses, 2.0% for retail, 3.7% for offices and 0.7% for warehouses.

Compared to Q2 2016, rents increased by 8.3% for flats, 10.2% for houses, 6.8% for retail premises, 14.4% for offices and 4.2% for warehouses.

Gross yields

At the end of the second quarter of 2017, average gross yields stood at 4.1% for apartments, 2.1% for houses, 5.4% for retail, 4.3% for warehouses, and 4.9% for offices.

The parallel reduction and/or stabilisation in capital values and rents is keeping investment yields relatively stable and at low levels (compared to yields overseas). This suggests that there is still room for some re- pricing of capital values to take place, especially for properties in secondary locations.

Cyprus property average price index (all types)

Further reading

RICS Cyprus Property Price Index Q2 2017

Readers' comments

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  • Jill says:

    And whose fault is it that it takes so long to sell assuming, of course, houses sell at all? Once again, it comes down to the dual problems of thousands of unsold brand new or half built villas plus, of course, the Title Deeds fiasco.

    Once the ‘buyer’ finds out there’s no Deeds, they sensibly back off, however much they like the villa. We were promised our Deeds weren’t we, but there’s always some excuse why they’re not forthcoming, the Council being the worst offender now…….

  • Peter Hooward says:

    Hi I do not know where Zemo Munro gets his information from regarding Cyprus having the lowest estate agents fees in Europe. As for Ijm saying that he will not sell his house because he would have to pay estate agents fees !

    Estate agents fees across Europe and indeed the USA are a fairly standard 5%. I am a ‘wicked’ estate agent here in Cyprus and often work for 4%, I also have an office in Spain where the minimum fees are 5%. In France the standard fees are between 5 – 10 %

    The only country where fees are lower is in the UK where agents can afford to work for lower fees, partly because the property prices are often double, but also because sales are achieved much quicker. Average time to sell a house in the UK is 2 – 3 months – as many people on this forum know only to well, here in Cyprus it can be 2 -3 years. An agent here in Cyprus is spending money advertising during this long sales period – and when a buyer is found, a reputable agent will spend a lot of time looking after the client, as they are buying in another country.

    As we all know there are a lot of ‘rogue’ agents here in Cyprus, but please rest assured there are many of us who are very reputable, and earn our commission. Please also remember no sale – no fee

  • Julie says:

    Good old Cyprus really dos not make any sense, with all the houses on the island that are still be up for sale for year and not sold so they put them up , oh boy no brains , when will they get with the real world , and see what there doing the greed of sum people is so crazy you want 2 sell put a price that will sale or seat for years n years n wait . With all new houses going up what are they thinking when so many resales on the market ,,,, very sad as still the head is in the sand Cyprus.

  • Ijm says:

    I agree, the greedy estate agents fees are crazy. I was going to sell my property until I found out the fees involved.

    Ed: There’s nothing to stop you negotiating a lower fee with estate agents.

  • Zemo Munro says:

    Great News for Estate Agents who charge 5% commission plus VAT, one of the highest in Europe, bad news for Sellers!

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