Cyprus house prices up for three quarters in a row

Photo: Martha de Jong-Lantink

House price in Cyprus have risen for three quarters in a row, as the market recovery continues to build momentum.

Figures from the Cyprus Central Bank show that prices rose 0.3 per cent in the first quarter of 2017, the third quarterly growth in a row. Prices were 0.2 per cent higher year-on-year, too, the first annual increase recorded in seven years.

While the the growth is relatively small, it confirms the market trend is continuing. House prices in Limassol rose 0.9 per cent, ahead of Nicosia (0.2 per cent) and Famagusta (0.1 per cent), but declined in Larnaca and Paphos by 0.7 per cent and 0.6 per cent respectively.

The figures are echoed by the latest RICS Cyprus Property Price Index, which reveals that the average value of apartments and houses across Cyprus climbed 1.3 per cent and 2.3 per cent respectively in the fourth quarter of 2016, before climbing in all cities in Q1 2017. Larnaca recorded the largest quarterly rise in apartment and house prices at prices at 4.6 per cent and 2.8 per cent respectively. Limassol saw the largest increase in apartment prices (2.9 per cent).

Compared to Q1 2016, apartment prices have risen 4.9 per cent, while house prices have risen 3.3 per cent.


Cyprus house prices up 4.1pc

26th July 2017

Cyprus house prices have risen 4.1 per cent in the last year.

New official figures from the Cyprus Statistical Service show that property values jumped 4.1 per cent year-on-year in the first quarter of 2017. While the country has enjoyed a growing recovery in recent months, with enquiries steadily rising on that recovery remains uneven, suggests the data: house prices slipped 1.4 per cent on a quarterly basis, compared to a 0.8 per cent quarter-on-quarter rise in the final three months of 2016.

This is the first time a negative quarterly figure has been recorded since Q1 2016. However, prices climbed 4.1 per cent compared to that quarter, the second month in a row of positive annual growth.

The figures follow Eurostat data for the opening months of 2017, with overall EU house prices rising 4.5 per cent and Cyprus seeing a decline of 1.4 per cent.


Cypriot property prices continue to climb

16th June 2017

Cypriot property prices are continuing to climb, with Limassol and Larnaca leading the way.

The latest RICS Property Price Index confirms that the island’s housing market is steadily recovering, with house and apartment values up 0.7 per cent and 1.7 per cent respectively in the fourth quarter of 2016.

The RICS index ranked Larnaca as the best performing city, with apartment prices up 3.3 per cent, while Limassol enjoyed the strongest house price growth of 1.8 per cent. On an annual basis, apartment prices rose 3.7 per cent and house prices rose 3.4 per cent. Since RICS began its Cypriot index in 2009, apartment and hosue prices have fallen 38 per cent and 28 per cent respectively. As of 2016 and 2017, though, the market is certainly enjoying an upward trend.

Indeed, the country’s economy is showing stability, with GDP growing 0.7 per ceent in Q4 2016 an 2.9 per cent over the course of the year, which is helping to fuel confidence in the country’s market. Transactions also increased in the fourth quarter.

The RICS figures echo the positive sentiment from the country’s Central Bank too, which reports that property prices rose 0.3 per cent in the fourth quarer of 2016, the second quarterly rise in a row. According to the bank, Limassol and Nicosia led growth with 0.5 per cent rises each, followed by Famagusta (0.2 per cent). Paphos and Larnaca, however, saw property prices dip 1.1 per cent 0.7 per cent respectively.


Cypriot property prices rise for first time since 2009

17th February 2017

Cypriot property prices rose last year for the first time since 2009, according to the Cyprus Central Bank.

The bank’s Residential Property Price Index climbed 0.1 per cent in the third quarter of 2016 compared to the previous quarter, taking the index to 73.3. This is the first time it has risen since 2009, reports Cyprus Property News.

In every province, quarterly analysis indicated that in three of the five provinces, prices edged up slightly, says the bank: prices rose 0.3 per cent in Limassol and Paphos, ahead of Larnaca (0.2 per cent), while prices fell 0.2 per cent and 1.1 per cent in Nicosia and Famagusta respectively.

Annually prices fell 1.3 per cent, but this is the lowest decline recorded since the fourth quarter of 2010, which confirms the wider perception that the market is beginning to stabilise.

“It is estimated that as the economy further recovers and confidence returns, the real estate market will continue stabilizing and, possibly, soon [begin a] restrained upward course,” says the report.


Property prices climb across Cyprus

2nd February 2017

Property prices climbed across most of Cyprus last year, according to new figures from the Royal Institution of Chartered Surveyors. The RICS data shows that property prices in Q3 2016 rose in almost every district and across almost all property types. The average price of apartments increased by 0.9 per cent year-on-year, with the price of houses up 0.6 per cent.

Limassol led the way for apartment prices, with values rising 1.4 per cent, while Paphos was at the front of the pack for house prices, with values up 1.77 per cent. The values of holiday homes improved by 1.6 per cent (apartments) and 0.4 per cent (house).

“During the third quarter of 2016 the Cyprus economy showed further signs of stability, with the economy‚Äôs performance being better than expected and tourism mildly outperforming forecasts,” says the RICS. “Unemployment remained at relatively high levels, on a downtrend to ca 13 per cent (from the high levels of 17 per cent). Given prevailing economic conditions and the turbulence in the Cyprus banking system, there were relatively few transactions during the quarter although volume was higher on a year on year basis.”

Larnaca is highlighted as a hotspot for notable price growth, particularly for holiday apartments, while other cities are “progressively bottoming out”.

Prices are now 39 per cent (apartments) and 28 per cent (houses) below their values recorded in Q4 2009, when RICS first began its Cypriot index.


Stable Cyprus sees property prices bottom out

26th October 2016
Cypriot house prices continued to bottom out in the second quarter of 2016, as the island’s economy showed signs of stability.

House prices edged up 0.2 per cent, according to the latest RICS Cyprus Property Prices Index, with apartment prices rising 0.3 per cent. The rises mark an ongoing stabilisation in the housing market that mirrors the country’s economic performance, which exceeded expectations in the three months to September 2016. Indeed, this week, Fitch Ratings upgraded Cyprus from a B+ to a BB-, following its exit from the EU and IMF bailout programme.

The RICS index ranks Larnaca as leading the way, with apartment price growth of 1.1 per cent. Paphos headed up house price growth, also with a rise of 1.1 per cent. Holiday home prices climbed 1.1 per cent (houses) and 2.7 per cent (apartments), with rental rates across the island up 0.5 per cent and 0.4 per cent respectively. Most asset classes saw prices improve, including retail (1.5 per cent) and office (0.6 per cent), while warehouse prices dropped 0.4 per cent.

Gross yields across the quarter are now at 4 per cent for apartments, 2 per cent for houses, 5.3 per cent for retail, 4.3 per cent for warehouses and 4.5 per cent for offices.


New index shows Cypriot house prices falling

13th July 2016

A new house price index says that property values in Cyprus are falling.

Earlier this month, the RICS Cyprus Property Price Index reported that property prices in the first quarter of 2016 rose 1.2 per cent. However, the RICS report is based on hypothetical properties with title deeds. The new Cyprus Statistical Service index covers “all types of residential properties”, including new and existing homes, and says that values fell by an average of 3.4 per cent in the first three months of the year.

The report also says that values have slipped 1.2 per cent year-on-year.

Cyprus Property News

Cypriot house prices climb in 2016

5th July 2016

Cypriot house prices and apartment prices both climbed at the start of 2016.

New figures from the RICS Cyprus Property Price Index show that the average value of apartments rose 1.2 per cent in the first quarter of the year, while the average value of houses increased 1.5 per cent.

“Almost all” urban centres saw prices rise, notes Cyprus Property News, with prices in some areas bottoming out.

Famagusta led the way for apartment prices, with values growing 1.5 per cent, while Paphos was top for house prices, with growth of 5.6 per cent.

Commercial properties fared less well, with retail properties falling in value by 0.5 per cent. While offices and warehouses saw values rise 1.5 per cent and 1.2 per cent respectively, warehouses fell 2.3 per cent on a year-on-year basis. Retail prices also fell 1.3 per cent year-on-year, while offices edged up by 0.7 per cent.

Cyprus house prices down at end of 2015

18th May 2016

Cyprus house prices fell at the end of 2015, according to new figures from Eurostat.

Property values on the island declined 4.2 per cent in the fourth quarter of last year compared to the previous quarter, but only 0.6 per cent year-on-year.

The figures mark Cyprus’ market out as the worst performing on the continent in Q4 2016, on a quarterly basis, and the third worst on an annual basis, ahead of Italy (-0.9 per cent) and Croatia (-2.1 per cent).

Overall, house prices in the euro area rose 2.9 per cent and by 3.8 per cent in the EU in the fourth quarter of 2015, compared to the same quarter of 2015. House prices were more stable in the euro area on a quarterly basis, rising 0.2 per cent.

Cyprus Property News”

Cyprus property prices bottoming out

14th March 2016

Property prices in Cyprus are showing signs of bottoming out, according to the Central Bank of Cyprus’ residential property prices index (RPPI).

The index saw values dip by just 0.3 per cent in the third quarter of 2015 compared with the previous three months, with prices rising in Larnaca (1.2 per cent) and Paphos (0.2 per cent).

“The decrease in prices of houses and apartments price is slowing down,” Antonis Loizou, member of the RICS, told Cyprus Weekly.

The recovery remains gradual, with prices down year-on-year by 3.7 per cent in the third quarter – but this is still a marked improvement from the 5 per cent and 6.5 per cent dip recorded in the second and first quarter of 2015 respectively.

Property prices in Cyprus show signs of stability

3rd November 2015

The Cypriot economy and housing market have been some of the worst hit by the financial crisis in recent years, but property prices on the island are showing signs of stabilising, according to the latest RICS index.

House prices have fallen by more than 30 per cent since 2010, with apartment prices falling by an even more severe 40 per cent. They continued to drop in the third quarter of 2015, with apartment prices dipping 0.4 per cent and house prices dipping 0.5 per cent. Both decines, though, are far less severe than the drops recorded in previous years.

Famagusta led the way with a 1.2 per cent decrease in flat values, while Limassol saw prices fall 3.2 per cent. But if performance varies between regions, there are some areas of Cyprus where prices are now showing signs of stability – Paphos, Larnaca and Famagusta are all highlighted by the RICS as “progressively bottoming out”. Nicosia, meanwhile, so prices edge down just 0.3 per cent.

Across Cyprus, on a quarterly basis, rental values increased by 0.3 per cent for apartments, 1.5 per cent for houses and 2.6 per cent for office. A decrease of 1.1 per cent for retail units was noted and 0.1 per cent for warehouses. Compared to Q3 2014, rents dropped by 1.5 per cent for flats, 0.5 per cent for houses, 4 per cent for retail, 2.5 per cent for warehouses, and 0.2 per cent for offices.