Property prices in Cyprus rose in all asset classes except retail in the first three months of the year, compared with the last quarter of 2015, as rents increased in all categories, the Royal Institute of Chartered Surveyors said.
From January to March, prices for houses and flats rose 1.5 per cent and 1.2 per cent compared with the last quarter of 2015 respectively, the Cyprus division of RICS said in an emailed statement on Wednesday. Buyers of offices and warehouses paid in the first quarter 1.5 per cent and 1.2 per cent more compared with the October to December, while those who bought retail properties paid 0.5 per cent less. Flat prices in Famagusta and house prices in Paphos rose 4.1 per cent and 5.6 per cent respectively, which was the largest increase in the respective category island-wide.
Compared with the first quarter of 2015, prices for flats, shops and warehouses fell from January to March 0.2 per cent, 1.3 per cent and 2.3 per cent respectively, RICS said. Prices for houses and offices rose 0.6 per cent and 0.7 per cent respectively.
Apartment and house rental prices rose 3.6 per cent and 1.8 per cent in the first quarter compared with October to December, RICS said. Renting retail properties, warehouses and offices became 0.2 per cent, 0.4 per cent and 0.6 per cent less affordable respectively.
“Compared with the first quarter of 2015, rents increased 4.2 per cent for flats, 2.4 per cent for houses and 2.4 per cent for offices,” the statement said, adding that rents for “retail and warehouses dropped 3.2 per cent and 2.1 per cent respectively”.
“The majority of asset classes and geographies are bottoming out, with areas that had dropped the most early on in the property cycle,” such as Paphos, Famagusta and Larnaca, showing some signs of price stabilisation.
Investing in apartments and houses offers owners an average gross yield of 4 per cent and 2 per cent, RICS said. Retail, warehouses and offices offered a 5.2 per cent, 4.3 per cent and 4.4 per cent yield to investors.