Nicosia, February 25, 2016/Independent Balkan News Agency
Τhe Cyprus Property Price Index RICS has recorded falls in most cities and asset classes, during the fourth quarter of 2015 while the rate of decrease is less than previous quarters.
According to the data released Thurdsay in the 25th publication of RICS Cyprus, across Cyprus, the trend in property prices appears mix as residential prices for flats fell by 0.5% and 0.1% for houses. The biggest drop being in Limassol (1.4% for flats) and in Nicosia 0.8% decrease for houses. An increase of 2.9% for offices was noted in Nicosia.
Values of warehouses fell by an average 2.3%, retail properties remained stable and offices increase by 0.7%.
Compared to Q4 2014, prices dropped by 1.8% for flats, 0.3% for houses, 2,4% for retail, 0.9% for office, and 2.2% for warehouses.
Market Rental Values
Across Cyprus, on a quarterly basis rental values increased by 0.5% for apartments, 1.1% for houses and 0.2% for office. A decrease of 0.2% for retail units was noted and 1% for warehouses.
Compared to Q4 2014, rents dropped by 3.8% for retail, 2.6% for warehouses and 0.2% for offices. On an annual basis an increase of 0.3% and 0.8% was noted for apartments and houses respectively.
The majority of asset classes and geographies continue to be affected, with areas that had dropped the most early on in the property cycle now nearing or are showing some signs of price stability.
Appraisal based initial yields
At the end of Q4 2015 average gross yields stood at 3.9% for apartments, 2% for houses, 5.2% for retail, 4.3% for warehouses, and 4.5% for offices.
The parallel reduction in capital values and rents is keeping investment yields relatively stable and at low levels (compared to yields overseas). This suggests that there is still room for some re-pricing of capital values to take place, especially for properties in secondary locations.
In addition certain Districts and asset classes indicate signs of stability as Paphos, Larnaca and Famagusta are progressively bottoming out.