Property prices are still dropping

Property Prices are still dropping according to the RICS but at a lower rate than the previous year.

Across Cyprus, prices of residential houses and apartments fell by 1.1% and 1.0% respectively during the second quarter of 2014 according to the latest quarterly RICS Cyprus Property Price Index.

The largest falls were reported in Paphos, where house prices fell by 2.1% and apartment prices fell 2.8% over the quarter. Across the island the values of retail properties fell by an average of 3.0%, while those of offices and warehouses fell by 2.2% and 2.6% respectively.

Annualised property price falls

Compared to the second quarter of 2013, the average price of a residential apartment has fallen by 7.8% and the average price of a 3-bed semi has fallen 3.9%. Retail property has fallen in value by 10.4%, offices by 8.3% and warehouses by 8.3%.

Overall price falls

Since the first edition of the RICS Cyprus Property Price index was published for the first quarter of 2010 residential house values have fallen by an average of 28%, while those of apartments have fallen 39%. (Note that the RICS Price Index does not include prices of holiday homes, which anecdotal evidence suggests have fallen in value considerably more than those of residential properties.)

Rental values

Rental values recorded a quarterly drop of 1.3% for apartments, 0.3% for houses, 4.3% for retail units (shops), 4.5% for warehouses, and 1.0% offices. Compared to the second quarter of 2013, rents have fallen 7.6% for apartments, 7.9% for houses, 16.6% for retail units, 8.2% for offices and 11.6% for warehouses.

Gross yields

At the end of second quarter of 2014 average gross yields stood at 3.9% for apartments, 1.9% for houses, 5.3% for retail, 4.3% for warehouses, and 4.4% for offices.