Cyprus Property Price Index Q2 2019-Prices increases across Cyprus

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 2015Q1.

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 NPLs and DFAS by most banks continue to be present in the market. The Property Price Index has recorded increases on an annual basis in all cities and asset classes, with significant increases being recorded in Limassol, whilst Nicosia, Larnaca, Paphos and Paralimni have shown smaller annual increases..

Across Cyprus, residential prices for both houses and flats increased on a quarterly basis by 1.2% and 1.4% respectively, with the biggest increase being in Limassol, 3.87% for flats and Limassol 4.82% for houses. Values for holiday homes on a quarterly basis across Cyprus increased by 1.3% for flats and 1.8% for houses. Famagusta showed the highest quarterly increase for holiday houses and Limassol the highest increase for Holiday apartments with an increase of 2.94% and 2.08% respectively. Across Cyprus, on an annual basis, prices increased by 8.1% for flats, by 7.7% for houses, by 6.0% for offices, by 3.6%, warehouses and by 4.0% for retail..

On a quarterly basis rental values increased by 4.6% for apartments, 3.2% for houses, 0.9% for retail and 0.2% for offices, while for warehouses they remained unchanged. On an annual basis, rents increased by 16.4% for flats, 14.4% for houses, 7.0% for retail, 4.9% for offices and 1.3% for warehouses. All asset classes have shown a consecutive quarterly growth apart from warehouses.

Appraisal based initial yields At Q2 of 2019 average gross 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 RICS Cyprus Property Price Index monitors the urban centres of Nicosia, Limassol, Larnaca, Paphos and Paralimni/Famagusta. The Index only tracks prices in Republic of Cyprus’ government controlled area and not in the occupied North. In each of these centres, the index monitors the Market Value and Market Rent, as defined in the RICS Red Book, across the four main property sectors – office (CBD), retail (high street), industrial (warehouse) and residential (houses and apartments). .

Recognising that there are sub-districts within these urban areas which operate and behave in a varying manner, a number of these is monitored in order to derive the composite index for each category per urban area. The information provided in this publication is based on the average price and rent of the sub-districts monitored per urban centre per sector. The RICS Cyprus Property Price Index monitors hypothetical or notional buildings, each having specific characteristics. The provided price per sq.m is based on the Gross External Area of the property, which includes the living area and covered verandas but excludes common areas. The index is produced on a quarterly basis..

Lambros Kaloyirou.

BSc (Hons) MRICS .

Urban Keys Chartered Surveyors Ltd.

www.urban-keys.com.

70, 28TH October Ave.

2414, Nicosia, Cyprus..

Telephone: +357 22 27 00 19.

E-mail: [email protected].

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