articles | 07 July 2016

Cyprus' property prices up in Q1 2016

Property prices in Cyprus rose in all asset classes except retail in the first three months of 2016, compared with Q4 2015, as rents increased in all categories, the Royal Institute of Chartered Surveyors said.

From January to March, prices for houses and flats rose 1.5% and 1.2% compared with the last quarter of 2015 respectively, the Cyprus division of RICS said in an emailed statement on Wednesday. Buyers of offices and warehouses paid in the first quarter 1.5% and 1.2% more compared with the October to December, while those who bought retail properties paid 0.5% less. Flat prices in Famagusta and house prices in Paphos rose 4.1% and 5.6% respectively, which was the largest increase in the respective category island-wide.

Compared with the first quarter of 2015, prices for flats, shops and warehouses fell from January to March 0.2%, 1.3% and 2.3% respectively, RICS said. Prices for houses and offices rose 0.6% and 0.7% respectively.

Apartment and house rental prices rose 3.6% and 1.8% in the first quarter compared with October to December, RICS said. Renting retail properties, warehouses and offices became 0.2%, 0.4% and 0.6% less affordable respectively.

“Compared with the first quarter of 2015, rents increased 4.2% for flats, 2.4% for houses and 2.4% for offices,” the statement said, adding that rents for “retail and warehouses dropped 3.2% and 2.1% respectively”.

“The majority of asset classes and geographies are bottoming out, with areas that had dropped the most early on in the property cycle,” such as Paphos, Famagusta andLarnaca, showing some signs of price stabilisation.

Investing in apartments and houses offers owners an average gross yield of 4% and 2%, RICS said. Retail, warehouses and offices offered a 5.2%, 4.3% and 4.4% yield to investors.

Source: Cyprus Mail

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