Home prices are hitting high levels.
As per the publication of the RICS Cyprus Property Price Index reports of 2017 indicated that the average price of residential apartments and houses across the island have risen by 17.4% respectively since the third quarter of 2017.
Over the same period, the commercial properties’ prices have risen at least 8.8%. The significant price rises were recorded in all districts in the island that affect all asset classes. However, the highest increase was reported in the south, in coastal town of Limassol respectively. In TRNC the highest increase was in Lefkosa with 19.5%, for warehouses and retail. Quarterly, price always changes as compared with the 2nd quarter of 2017, prices of apartments and houses rose by 0.5% and 1.7% respectively.
Prices of holiday homes also rose with the prices of apartments rising by 2.5% and houses rising by 1.80%. As according to Quarter 3 of 2016, rents increased by 12.5% for apartments, 9.2% for houses, 6.1% for retail premises, 22.4% for offices and 1.6% for warehouses. So, what does the future hold? Some economists are warning that the recovery in the island property market is short lived and expect prices to fall in a couple of years again. We are already experiencing a short fall due to local slow purchasing power and currency inflation, but the international investors and buyers still have advantages in scooping endurable assets and properties at a low exchange rates than local ones.