A further surge in the real estate prices in Cyprus during the 3rd quarter of 2017 was recorded in the property price index of RICS (the Royal Institution of Chartered Surveyors), as stated in the 32nd edition of the organisation. This particular index monitors the prices and rentals of properties in all districts across the island and is based on a specific methodology that was developed at the University of Reading, in the United Kingdom.
During the third quarter of 2017, the Property Price Index records significant and successive increases in nearly all major urban areas and to all property categories, with Paphos and Paralimni being the cites with the smallest rise across the island.
More specifically, house and apartment prices showed a quarter rise of 1.7% and 0.5% respectively, with Limassol coming first, scoring a staggering surge of 5.5% in house prices and 4.1% in apartments. The most significant yearly rise in both apartment and house prices was re-recorded for Limassol, namely 13.2% and 14.3% respectively.
As for office prices, the greatest rise took place in Nicosia, namely a 19.5% rate, while storage facilities and shops recorded an important increase of 7%.
When seen against the respective quarter of 2016, the apartment prices went up by 7.4%, house prices by 4.2%, offices by 8.8%, storage facilities by 4.4% and shops by 4.5%.
Villa prices also went up across the island during this quarter, namely 2.5% for the apartments and 1.8% for houses. Again, Limassol was by far first in villa prices, since they went up by 4%, with Paralimni following, way back though, with an increased rate of 2.9%.
The average rental price across Cyprus increased by 4.6% during the same quarter, while houses, shops and storehouses recorded a 2.5%, 1.5%, 5.7%, and 0.9% increase respectively. Seen against the rentals of the third quarter of 2016, 2017 rental prices went up by 12.5% for the apartments, 9.2% for houses, 6.1% for shops, and by an astonishing 22.4% for offices! Storage facilities went up just by 1,6%.
Investment Returns
By the end of the third quarter of 2017, investment returns were stabilised to a 4.2% for apartments, 2.1% for houses, 5.4% for shops, 4.3% for storage facilities and 5% for offices. In general, investment returns remained quite stable, with a slight increase in offices, which for a long period had remained within a span of 4.4 – 4.5%. As for offices across Cyprus, a yearly rise of the purchase value of 8.8% was recorded, while rentals went up by an impressive 22.4%.
The RICS Property Prices Index is prepared in cooperation with the Association of Quantity Surveyors Cyprus (SEEOKK) and the Association of Scientific Property Valuers of Cyprus.