Changes in prices for Cyprus property for the second quarter of 2019

RICS in Cyprus reports that house and apartment prices across the island rose 1.2% and 1.4%, respectively, for the first quarter of 2019. During the second quarter of 2019, the Cyprus economy showed further signs of recovery, with seasonally adjusted quarterly GDP growth of 0.7% and annual seasonally adjusted GDP growth of 3.2%. Unemployment fell to 7.0% from 7.2% in the previous quarter and a record high of 17.6% in the first quarter of 2015. Increased confidence in the banking system of Cyprus and increased access to finance, respectively, contributed to relatively higher volumes during the quarter, which further strengthened market sentiment.

Limassol recorded the largest quarterly increase in apartment prices by 3.87%. House prices also rose 1.8% in the quarter. Famagusta has the highest rise in home prices - up to 2.94%, and in Limassol - the highest rise in apartment prices - up to 2.08%.

On an annualized basis, apartment prices rose 8.1%, houses 7.7%, offices 6.0%, warehouses 3.6% and retail sales 4.0%.

Rent price

On a quarterly basis, rental value increased by 4.6% for apartments, 3.2% for houses, 0.9% for retail, 0.2% for offices, while warehouses remained unchanged.

On an annualized basis, rents increased by 16.4% for apartments, 14.4% for houses, 7.0% for retail, 4.9% for offices and 1.3% for warehouses. With the exception of warehouses, all asset classes show consistent quarterly growth.

At the end of the second quarter of 2019, the average rental yield was 4.8% for apartments, 2.5% for houses, 5.7% for retail, 4.1% for warehouses and 5.0% for offices. Rental income is a useful indicator of whether a property is overvalued, underestimated, or correctly valued.