Cyprus Property Price Index Q2 2019 Prices as at 30/06/19
This article was posted in RICS.
This is the thirty-ninth 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 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.
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 Limassol, whilst Nicosia, Larnaca, Paphos and Paralimni have shown smaller annual increases.
Market Rental Values
Across Cyprus, 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.
Index parameters and methodology
The methodology underpinning the RICS Cyprus Property Price Index was developed by the University of Reading, UK.
The report is available upon request at [email protected]
Coverage and Variables Monitored
The RICS Cyprus Property Price Index monitors the urban centres of Nicosia, Limassol, Larnaca, Paphos and ParalimniFamagusta. 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 complete list of these subdistricts can be found in the University of Reading’s report which is available upon request at [email protected]
Nature of Notional Buildings
The RICS Cyprus Property Price Index monitors hypothetical or notional buildings, each having specific characteristics.
Details of these hypothetical properties are provided in the University of Reading’s report.
The provided price per sqm is based on the Gross External Area of the property (as defined in the RICS’ Code of Measurement Practice 8th Edition), which includes the living area and covered verandas but excludes common areas.
The index is produced on a quarterly basis.
The estimation of price levels is carried out by accredited RICS property professionals who are active in the relevant markets.
Contributing professional bodies
Profile of RICS
RICS is a global professional body. We promote and enforce the highest professional qualification and standards in the development and management of land, real estate, construction and infrastructure. Our name promises the consistent delivery of standards – bringing confidence to the markets we serve. The work of our professionals creates a safer world: we are proud of our profession’s reputation and we guard it fiercely. RICS in Europe is based in Brussels and represents 17 national associations, with over 8,150 members in Continental Europe. Visit www.rics.org for more information.
Profile of ΣEEOKK
The Cyprus Association of Quantity Surveyors and Construction Economists (ΣΕΕΟΚΚ) is the association that represents Chartered Quantity Surveyors and Quantity Surveyors whose main area of work is in Cyprus and they permanently live in Cyprus. Visit www.seeokk.org for more information.
Profile of Cyprus Association of Valuers and Property Consultants
The Association was founded in 1972. At present there are about 100 members registered with the Association and concurrently with the Cyprus Scientific and Technical Chamber (CSTC), which is the official body that regulates the Valuation Profession in Cyprus. Our members are also members of RICS and are operating in accordance with the International Valuation Standards and the RICS Appraisal and Valuation Manual (Red Book).