Rent prices rose at an increasing rate in the third quarter of 2017, driven mainly by office space and residential properties, the Cyprus division of the Royal Institute of Chartered Surveyors (RICS) said.
Office rents rose 22 per cent year-on-year in July to September last year and a quarterly 5.7 per cent, against an increase in property values of 8.8 per cent and 4.2 per cent respectively, RICS said in an statement. The highest increase in rent prices was in Nicosia where they rose an annual 33 per cent and a quarterly 9.6 per cent. In Limassol, rent prices for offices rose 18 per cent and 5.6 per cent respectively.
Rents for apartments and houses rose 12 per cent year-on-year in the third quarter of 2017 and 9.2 per cent on a quarterly basis, RICS said. Compared to the previous quarter, rent prices rose 4.6 per cent and 2.5 per cent respectively.
Residential rent prices rose again the most in Limassol, where they increased an annual 36 per cent and a quarterly 12 per cent in the case of flats. In houses, the increase was 27 per cent and 9.1 per cent respectively, according to the RICS data. Larnaca was the only district in which rent prices for both houses and apartments fell in the third quarter compared to the third quarter of 2016 — 2.8 per cent in the case of houses and 0.4 per cent in the case of apartments. Compared to the second quarter, renting a flat became 1.2 per cent less affordable while house rents fell 3.7 per cent.
Retail property rents rose a quarterly 1.2 per cent and an annual 6.1 per cent island-wide in July to September of 2017, RICS said. The highest increase was in the Famagusta area, where they went up 11 per cent compared to the third quarter of 2016, and 2.5 per cent compared to the second quarter. While shop rent prices rose in all other districts, in Larnaca, they remained unchanged both on an annual and quarterly basis.
Lastly, warehouse rents rose 1.6 per cent year-on-year in the third quarter and 0.9 per cent compared to the second quarter, the institute said. The increase resulted from higher rent prices in mainly Nicosia and followed by Limassol. In Larnaca and Paphos, rent prices remained unchanged.