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Wednesday 5th August 2020
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RICS Cyprus property price index Q2 2019

THE THIRTY-NINTH publication of the RICS Cyprus Property Price Index reports that the average price of residential apartments and houses across the island rose over the first quarter of 2019.

During the second quarter of 2019 the Cyprus economy showed further signs of recovery, with a seasonally adjusted quarterly GDP growth of 0.7% and an annual seasonally adjusted GDP growth of 3.2%. Unemployment dropped further to 7.0% compared to 7.2% of the previous quarter and the record high of 17.6% in the first quarter of 2015.

The improved confidence in the Cyprus banking system and the 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 non-performing loans (NPLs) and Debt for Asset Swaps (DFAS) by most banks continue to be present in the market.

Quarterly property price changes

Compared with the first quarter of 2019, prices of residential houses and apartments rose by 1.2% and 1.4% respectively. Limassol recorded the largest quarterly increase in apartment prices up 3.87% and house prices up 4.82%.

Prices of holiday homes also rose over the quarter by 1.3% for apartments and 1.8% for houses. Famagusta saw the highest rise in the price of holiday houses – up 2.94%, while Limassol saw the highest rise in the price of holiday apartments – up 2.08%.

Annual property price changes

On an annual basis apartments prices rose 8.1%, houses by 7.7%, offices by 6.0%, warehouses by 3.6% and retail by 4.0%.

Rental values

On a quarterly basis rental values increased by 4.6% for apartments, 3.2% for houses, 0.9% for retail, 0.2% for offices, while warehouses remained unchanged.

On an annual basis, rents increased by 16.4% for apartments, 14.4% for houses, 7.0% for retail, 4.9% for offices and for 1.3% warehouses.

With the exception of warehouses, all asset classes have shown a consecutive quarterly growth

Gross rental yields

At the end of the second quarter of 2019, average gross rental yields stood at 4.8% for apartments, 2.5% for houses, 5.7% for retail, 4.1% for warehouses, and 5.0% for offices.

The gross rental yield is a useful yardstick as to whether property is over-valued, under-valued or priced correctly. Here is a set of rules of thumb for the housing market from the Global Property Guide:

Gross Rental
Yield (%)
520Very undervalued
6.715Very undervalued
12.58Borderline undervalued
14.27Fairly priced
16.76Fairly priced
205Borderline overvalued
402.5Very overvalued
502Very overvalued

Further reading

RICS Cyprus Property Price Index Q2 2019


  1. Re Buyers’ Checklist I followed everything mentioned on the list when building an off plan house but still had to wait 13 years to get the title deeds with the house on the deeds. I made the fatal mistake of employing the developers architect instead of an independent architect.

    The Developer ignored the planning regulations and built my house 35% in excess of that allowed on the Planning Permit. I was living overseas and had assumed that the Lawyer would check such regulations.

    Ed: Unfortunately you can’t trust some of the developers. You need to watch over the construction yourself or employ a suitably qualified engineer/architect to keep an eye.

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