AVERAGE prices and rents for the second quarter of 2011 have fallen in all property types across the island – apartments, houses, retail, warehouse and office – continuing the downward trend since 2009.

According to findings of the Royal Institute of Chartered Surveyors (RICS) in its latest Cyprus Property Price index, since the first quarter of 2001, average residential prices for both houses and flats fell by 1.0 per cent and 2.7 per cent respectively, settling on July 1 at a national average of €419,880 for houses and €143,056 for apartments.

Compared to December 2009 prices; this marks a drop of 15.1 per cent and 9.9 per cent for houses and apartments respectively.

The highest average price for apartments was found in Limassol with €166,149 while the highest average house prices were in Nicosia, at €510,082. 

Larnaca experienced the biggest drop in property prices with a 3.2 per cent and 7.2 per cent for houses and flats respectively.

Values of retail properties fell by an average of 4.4 per cent, settling at a nation-wide figure of 604,282 per cent, whilst those of offices and warehouses fell by 2.2 per cent and 1.7 per cent respectively. 

Paphos and Larnaca were the main victims of falling retail prices, both experiencing over 8.0 per cent of a decrease since the last quarter. 

The biggest decrease in warehouse prices were found in the Famagusta district at over 7.0 per cent, followed by Larnaca at just under 4.0 per cent.

Average monthly rent by property also fell considerably, with warehouse rent experiencing the biggest decrease with 5.4 per cent, settling at a national average of €6,884 per month In contrast, house rents rose by 1.3 per cent to reach a national average of €689 per month, yet still remain way off the December 2009 mark, since the figure constitutes a 12.4 per cent decrease.

Investment yields – the income return on an investment – have been kept at relatively stable but low levels due to the falling capital and rent values. Retail claims the highest yield with 6.1 per cent, with Limassol topping the other districts, while warehouse yields stood the highest in Famagusta at 6.8 per cent.

RICS is the largest organisation in quantity surveying worldwide and publishes the Cyprus Property Index every quarter in collaboration with the Cyprus Association of Quantity Surveyors and Construction Economists.

Cyprus Mail