Local
articles | 26 October 2016

Cyprus property prices up in Q2 2016

Residential and most commercial property prices rose in the second quarter of 2016 driven by an increase in rents in most property categories, as economic growth is consolidating, the Cypriot division of the Royal Institute of Chartered Surveyors said.

House prices increased in April to June a quarterly 0.3% and an annual 1.1% while apartment prices rose 0.2% and 0.5% respectively, RICS said in an emailed statement recently.

The increase in apartments in the second quarter of the year, in which banks started to apply the new foreclosure law, was spearheaded by Larnaca where flat prices rose 1.1% compared to the previous quarter, and 4.3% compared to the respective quarter of 2015, RICS said. By contrast, flat prices in Nicosia fell a quarterly 0.2% and an annual 2.3%.

In Limassol, Paphos, and Famagusta, apartment prices remained unchanged in the second quarter, compared to January to March, RICS said. Compared to the second quarter of 2015, in Limassol and Paphos, they fell 0.6% and 0.7% respectively, and rose 1.5% in Famagusta.

The main boost in house prices came in the second quarter from Paphos, where they rose 1.1% in a quarter in April to June, and 8% compared to a year before, RICS said.

In Nicosia and Limassol, house prices remained unchanged in the second quarter and dropped 1.3% and 2.8% respectively, compared to the second quarter of 2015.

In Larnaca house prices remained unchanged compared to the first quarter and rose 1.4% compared to the second quarter of 2015. In Famagusta they remained unchanged in both cases.

Holiday homes, a new category measured for the first time this year, applying exclusively to seaside residential properties, rose in April to June a quarterly 2.7% and 1.1% in the case of flats and houses respectively, RICS said.

The prices of retail properties rose in the second quarter 0.3% compared to January to March and dropped 0.8% compared to April to June 2015, RICS said. Prices for warehouses remained unchanged both compared to the quarter before and the second three-month period of 2015 while office prices rose a quarterly 0.6% and an annual 2.8%.

In the second quarter of the year, shop prices rose the most in Paphos, 1.5% in a quarter and 5% in a year, RICS said. In the case of warehouses, the highest annual increase was Paphos’ 10%, while the office price increase was reported from Limassol where they rose 2.6% and 8.3% compared to the previous quarter and the respective three-month period of 2015.

In the second quarter, apartment and house rents rose 0.4% and 0.5% respectively compared to the quarter before, RICS said. Retail property and office rents rose a quarterly 0.3% and 0.6% while warehouse rents dropped 0.4%.

Compared to the second quarter of 2015, both apartment and house rents rose 4.9% in April to June while shop and office rents rose 0.5% and 5.2%, RICS said. Warehouse rents dropped an annual 1.2%.

Source: Cyprus Mail

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