House prices up 1.4% in Q4 2017

Financial Mirror (Cyprus) - - FRONT PAGE -

Cyprus Res­i­den­tial prices for both houses and flats in­creased on a quar­terly ba­sis by 0.8% and 1.4% re­spec­tively, ac­cord­ing data re­leased by RICS’ Cyprus Prop­erty Price Index.

The biggest in­crease was recorded in Lar­naca with a quar­terly rise of 2.7% for flats fol­lowed by Li­mas­sol with a quar­terly in­crease of 1.5% for houses.

Val­ues for holiday homes on a quar­terly ba­sis across Cyprus edged up by 0.4% for flats and 0.3% for houses.

Paphos showed the high­est quar­terly in­creases for holiday apart­ments with an im­prove­ment of 1.33% and Par­al­imni was tops for holiday homes with an in­crease of 0.9%.

Across Cyprus, on an an­nual ba­sis (com­pared to Q4 2016), prices for flats in­creased by 7.1%, for houses went up 4.3%, of­fices prices spiked 8.3%, ware­houses by 4.4% and re­tail by 3.1%.

Year-on-year the price of flats and houses saw the high­est rise in Li­mas­sol 11.1% and 12.6% re­spec­tively.

While in the cap­i­tal the cost for com­mer­cial prop­erty went up the most; of­fices 17.7%, ware­houses 9.3% and re­tail 4.2%.

On a quar­terly ba­sis rental val­ues in­creased by 2.9% for apart­ments, 1.9% for houses, 0.6% for re­tail, 2.5% for of­fices and 0.2% for ware­houses.

Com­pared to Q4 2016, rents in­creased an­nu­ally by 13.7% for flats, 8.2% for houses, 5.9% for re­tail, 19.2% for of­fices and for ware­houses 1.8%.

Across Cyprus, on a quar­terly ba­sis, rental val­ues in­creased by 2.9% for apart­ments, 1.9% for houses, 0.6% for re­tail, 2.5% for of­fices and 0.2% for ware­houses.

Com­pared to Q4 2016, rents in­creased an­nu­ally by 13.7% for flats, 8.2% for houses, 5.9% for re­tail, 19.2% for of­fices and for ware­houses 1.8%.

All as­set classes growth.

Im­proved con­fi­dence in the bank­ing sys­tem and the marginally im­proved avail­abil­ity of fi­nance have con­se­quently as­sisted in a rel­a­tively higher trans­ac­tion vol­ume dur­ing the quar­ter.

RICS es­ti­mated that at Q4 of 2017 av­er­age gross yields stood at 4.3% for apart­ments, 2.2% for houses, 5.5% for re­tail, 4.3% for ware­houses, and 5.1% for of­fices.

And in­vest­ment yields are rel­a­tively sta­ble with slight im­prove­ment seen in the Of­fice sec­tor noted af­ter a long time of yields of 4.4%-4.5%,

The RICS Cyprus Prop­erty Price Index mon­i­tors the ur­ban cen­tres of Ni­cosia, Li­mas­sol, Lar­naca, Paphos and Par­al­imniFa­m­a­gusta.

The Index only tracks prices in the area con­trolled by the

have shown

a

con­sec­u­tive

quar­terly

Repub­lic of Cyprus.

Mean­while, Euro­stat data shows that over a quar­ter of Cypri­ots are in ar­rears with their mort­gage pay­ments putting Cyprus only be­hind Greece and Bul­garia as the worst of­fend­ers. Greece topped the list with al­most half (47.9%) the pop­u­la­tion be­ing in ar­rears with mort­gage, rent, util­ity bills or hire pur­chase pay­ments.

Around one third of the pop­u­la­tion in Bul­garia (34.2%), and over a quar­ter in Cyprus (26.6%) and Croa­tia (26.4%) were also in ar­rears of this type. At the op­po­site end of the scale, half (14 out of 28) of the Mem­ber States recorded that less than 10% of their pop­u­la­tion were in ar­rears with mort­gage or rent, util­ity bills or hire pur­chase pay­ments.

The smallest pro­por­tions were 5.0% in the Nether­lands, 4.4% in the Czech Repub­lic and 4.2% in Ger­many.

When look­ing at the share of the pop­u­la­tion who were in ar­rears with mort­gages or rental pay­ments, the high­est per­cent­age in the EU was also recorded in cri­sis-hit Greece, where 15.3% of the total pop­u­la­tion had out­stand­ing debts of this kind.

The next high­est pro­por­tion was recorded in Cyprus (8.6%), fol­lowed by Spain and France (both 5.2%), Hun­gary (5.1%), Fin­land (4.9%) and Italy (4.2%).

Com­pared with 2008, the per­cent­age of the pop­u­la­tion that were be­hind with their mort­gage or rent pay­ments al­most tripled in Greece, from 5.5% to 15.3 %, while it more than dou­bled in Cyprus (from 3.4% in 2008 to 8.6%).

The lat­est data (for 2016), in­di­cates that 10.4% of the pop­u­la­tion in the Euro­pean Union were be­hind with their mort­gage, rent or other obli­ga­tions, such as util­ity bills or hire pur­chase pay­ments, which are typ­i­cally paid as monthly in­stal­ments. In other words, one in ten peo­ple in the EU had such out­stand­ing debts and de­layed pay­ments.

Con­cern­ing ar­rears for mort­gage or rental pay­ments, the pro­por­tion stood at 3.5% in the EU.

Peo­ple liv­ing in house­holds with de­pen­dent chil­dren (4.8%) were twice as likely to face this sit­u­a­tion as those with­out de­pen­dent chil­dren (2.3%).

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