Cyprus Average Property Prices from 2017 & What This Means for 2018

Cyprus Average Property Prices from 2017 & What This Means for 2018

According to the 31st publication of the RICS Cyprus Property Price Index, Cyprus property prices are continuing to rise, with apartment and house prices maintaining steady growth.

The report also looked into more figures, mainly the average price of residential apartments and houses across the island rose by 1.6% and 1.7% respectively during the first quarter of 2017. The largest increase was in Limassol where the prices of both apartments and houses rose by 3.8% during the same period in 2016.

Holiday homes also increased in value over the quarter with holiday apartments rising by 2.7% and holiday houses by 2.0%. Limassol saw the highest rise in holiday apartment prices at 4.3%, with Paphos seeing the biggest hike in holiday houses at 3.1%. During the second quarter of 2017 the Cyprus property market showed further signs of stability, with an adjusted quarterly GDP growth of 1.0% and an annual seasonally adjusted GDP growth of 3.6%.

Given prevailing economic conditions (such as the downward unemployment rate trend) and the marginally improved confidence in the Cyprus banking system, there are notably higher transactions during the quarter and improved market trust.

Financial institutions, despite of their Non-Performing Loans (NPLs), have been more willing to provide loans which means there is an increasing trend of interest from locals. Perhaps 2018 will be the year for Cypriots to invest in the housing market.

Cyprus Property Price Index

For the entire financial year, the Cyprus Property Price Index found increases for all cities and asset classes, with significant increases being recorded in namely Limassol, Nicosia and Larnaca; with Paphos and Paralimni showing smaller increases.

 

Purchase Increase Percentile

Type % Increase Compared to 2016
Apartment prices 6.3%
House prices 4.8%
Office prices 1.8%
Warehouse prices 0.3%
Retail prices 2.1%

 

Rental Increase Percentile

Type % Increase Compared to 2016
Apartment prices 1.1%
House prices 2.1%
Office prices 3.8%
Warehouse prices 0.7%
Retail prices 2.1%

The parallel reduction and market stabilisation in capital values and rent is keeping investment revenue stable and at low levels (compared to overseas profits). This suggests that there is still room for some re- pricing of capital values to take place in 2018, especially for properties in secondary locations.


 

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