Cyprus Property News magazine for overseas buyers & real estate investors

Friday 10th July 2020
Home Property Prices Cyprus property prices recovering

Cyprus property prices recovering

RICS-Cyprus-Property-Price-Index
RICS Cyprus Average Property Price Index

THE TWENTY-sixth edition of the RICS Cyprus Property Price Index issued earlier today reports that the average price of residential apartments and houses across the island rose by 1.2% and 1.5% respectively during the first quarter of 2016.

The Index reported price increases in almost all urban centres and all types of property, while prices in other urban centres are gradually bottoming out.

Famagusta recorded the largest increase in apartment prices (1.5%), while the largest increase in house prices (5.6%) was recorded in Paphos.

The value of retail properties fell by an average 0.5%, while the value of offices and warehouses increase by 1.5% and 1.2% respectively.

Compared to the first quarter of 2015, apartment prices have fallen by 0.2%, while house prices have risen by 0.6%. Prices of retail properties and warehouses have fallen by 1.3% and 2.3% respectively, while the price of offices has risen by 0.7%.

Given the prevailing economic conditions and the turbulence in the Cyprus banking system, there were relatively few transactions during the quarter of 2016 although volume was higher on a year on year basis.

Local buyers in particular were the most discerning as unemployment and high debt for locals maintained lack of interest. Furthermore, those interested are in purchasing property are trying to access bank-finance.

Rental Values

Across Cyprus, on a quarterly basis rental values increased by 3.6% for apartments, 1.8% for houses, 0.2% for retail, 0.4% for warehouses and office rents increased by 0.6%.

On an annual basis rents increased by 4.2% for apartments, 2.4% for houses and 2.4% for offices, while retail and warehouses dropped by 3.2% and 2.1% respectively.

Gross yields

At the end of the first quarter of 2016 average gross yields stood at 4% for apartments, 2.0% for houses, 5.2% for retail, 4.3% for warehouses, and 4.4% 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.

7 COMMENTS

  1. @Nigel: why don’t they publish BoC index?

    Ed: The BoC doesn’t publish an index. If you mean the one produced by the Cyprus Central Bank – I’m waiting for it to be published.

  2. Hi Nigel wait a very long time is a very broad based statement in the Cypriot terminology which can be applied to majority of what puts the C in Cyprus. He just a few of the ones that spring to mind now.

    Clear back log of Title Deeds
    Ayia Napa golf course
    World class Marinas complex
    Accountability on NPLs
    Waiting on any Cypriot workman (J)
    Euro Disneyland Cyprus style
    The Development of Gas Reservoirs
    Unifercation of the Island
    Up to date Tourist facilitties on par with other holiday destinations
    Own Airline
    EU Building Standards/practices

  3. Nigel so what you saying is there is positive indications that prices are showing signs of stabilizing. The Cyprus property market is very depressed as Overseas investors are reluctant on buying a property in Cyprus even at bargain basement prices.

    There are too many negative factors that will prevent a recovery in property prices which majority being self inflicted.

  4. Let’s wait for the BoC real property price Index… which curiously has got a hard time being published… :)

    Ed: You’ll have to wait a very long time for the Bank of Cyprus Index.

Comments are closed.

WEATHER FORECAST

EXCHANGE RATES

EUR - Euro Member Countries
GBP
1.1168
RUB
0.0125
CNY
0.1267
CHF
0.9421

TOP STORIES

Cyprus’ largest ever housing project will help low-income families

Limassol municipality and the Land Development Corporation (KOAG) reached an official agreement on Thursday regarding the establishment of the largest housing project ever undertaken in Cyprus, worth €100 million.

Corrupt lawyers continue to plunder estates

Corrupt lawyersin Cyprus continue to plunder the estates of their deceased clients by calculating their fees for administering estates on the Cyprus Bar Association's 'Minimum Fee Regulations', which were abolished in 2018

Cyprus house price index up 2.5 per cent

The Cyprus house price index rose by an average of 2.5 per cent in the first quarter of 2020 compared to the previous quarter according to official figures from the Cyprus Statistical Service (CYSTAT)

MPs commit to expedite citizenship bills

MPs have committed to expediting the bills and regulations aimed at improving the transparency of the citizenship-by-investment programme, so that the items can be voted on before the House breaks for the summer recess.