RICS Cyprus Property Index Q3 2017
This is the thirty-second publication of RICS’ Cyprus Property Price Index, a quarterly price and rental index which is based on methodology produced by the University of Reading, UK. The Index tracks property and rental prices across all districts and main property types.
Introduction & Commentary
During the third quarter of 2017 the Cyprus economy showed further signs of stability, with a seasonally adjusted quarterly GDP growth of 0.9% and an annual seasonally adjusted GDP growth of 3.9%. Unemployment remained at relatively high levels, on a continued downwards trend to ca 10.2% (from the high levels of 17%).
Given prevailing economic conditions and the marginally improved confidence in the Cyprus’ banking system, there are relatively higher transactions during the quarter and improved market sentiment. Financial institutions, despite of their NPLs, have been more willing to provide access to finance and an estimated €2.1 billion have been granted in loans by local banks (excluding rescheduling) for the first nine months of 2017
Market Capital Values
The Property Price Index has recorded increases on an annual basis in all cities and asset classes, with significant increases being recorded in all Districts, with Paralimni and Paphos showing slightly smaller annual increases.
Appraisal based initial yields
At the Q3 of 2017 average gross yields stood at 4.2% for apartments, 2.1% for houses, 5.4% for retail, 4.3% for warehouses, and 5.0% for offices. The investment yields are relatively stable with slight improvement is the Office sector noted after a long time of yields of 4.4%-4.5%, in line with the increased values and parallel increase in rents. For offices across Cyprus an annual increase in Market Value was noted of 8.8%, while Rental Values showed an annual increase of 22.4%
Download the full PDF Cyprus Property Price Index Q3 2017 publication