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19th August 2022
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HomeProperty NewsCyprus property prices continue to rise (Update)

Cyprus property prices continue to rise (Update)

Cyprus property prices continue to rise THE THIRTIETH publication of the RICS Cyprus Property Price Index reports that the average price of residential apartments and houses across the island rose by 1.3% and 2.3% respectively during the first quarter of 2017.

During the first quarter the Cyprus economy showed further signs of stability, with a seasonally adjusted quarterly GDP growth of 0.6% and an annual seasonally adjusted GDP growth of 3.3%. Unemployment remained at relatively high levels, on a downtrend to ca 12.8% (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. Despite their non-performing loans, financial institutions 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 cities and asset classes, with significant increases recorded in Limassol, Nicosia and Larnaca area, whilst Paphos and Paralimni have shown smaller annual increases.

Larnaca recorded the largest quarterly rise in apartment and house prices at prices at 4.6% and 2.8% respectively.

On a quarterly basis the values of holiday homes rose by 1.7% for apartments and 1.3% for houses. Limassol reported the highest increase in apartment prices (2.9%), while the highest rise in house values was recorded in Paralimni (2.1%).

Compared to the first quarter of 2016, apartment prices have risen 4.9%, house prices have risen 3.3%, while prices for offices, retail and warehouses have risen2.8%, 2.6% and 14.4% respectively.

Rental values

Across Cyprus, on a quarterly basis rental values increased by 2.5% for apartments, 2.6% for houses, 1.6% for retail, 4.6% for office and 11% for warehouses.

Compared to the first quarter of 2016, apartment rents have risen 5.5%, while those for house have risen 9.6%. Rents for retail have risen 4.3% and rents for offices and warehouses have both risen 11%.

All asset classes have shown a consecutive quarterly growth.

Gross yields

At the end of the first quarter of 2017, average gross yields stood at 4% for apartments, 2.1% for houses, 5.4% for retail, 4.3% for warehouses, and 4.8% 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 repricing of capital values to take place, especially for properties in secondary locations.

Location Type Price (€) Monthly
Rent (€)
Yield
(p.a.)
Monthly
Rent (€)
per sq.m
Nicosia Apartment 109,900 394 4.3% 4.66
House 381,986 701 2.2% 2.80
Retail 520,678 2,444 5.6% 20.95
Warehouse 1,155,976 5,407 5.6% 2.70
Office 547,724 2,521 5.5% 12.61
Limassol Apartment 113,229 452 4.8% 5.35
House 324,032 756 2.8% 3.02
Retail 464,700 2,213 5.7% 18.97
Warehouse 1,705,199 4,742 3.3% 2.37
Office 417,681 1,710 4.9% 8.55
Larnaca Apartment 126,122 334 3.2% 3.95
House 293,066 458 1.9% 1.83
Retail 298,478 1,469 5.9% 12.59
Warehouse 1,327,007 4,168 3.8% 2.08
Office 315,187 1,268 4.8% 6.34
Paphos Apartment 97,341 293 3.6% 3.47
House 386,679 579 1.8% 2.32
Retail 281,220 1,176 5.0% 10.08
Warehouse 1,079,757 3,507 3.9% 1.75
Office 330,663 1,053 3.8% 5.27
Famagusta/Paralimni Apartment 83,626 306 4.4% 3.62
House 320,916 507 1.9% 2.03
Retail 215,987 721 4.0% 6.18
Warehouse 827,862 4,093 5.9% 2.05
Office 215,127 685 3.8% 3.43
Cyprus (average) Apartment 106,044 356 4.0% 4.21
House 341,336 600 2.1% 2.40
Retail 356,213 1,605 5.4% 13.75
Warehouse 1,219,160 4,383 4.3% 2.19
Office 365,276 1,447 4.8% 7.24
(Derived from the RICS Cyprus Property Price Index for Q1 2017)

Further reading

RICS Cyprus Property Price Index Q1 2017

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