By Stelios Orphanides
Real estate prices in all categories rose in the fourth quarter of 2016, both annually and quarterly, as demand for residential properties is pushing prices up mainly in coastal areas, the Cyprus division of the Royal Institute of Chartered Surveyors (RICS) said.
Apartment prices rose 3.7 per cent year-on-year and 1.7 on a quarterly basis, RICS said in a statement obtained by the Cyprus Business Mail.
House prices increased 0.7 per cent in the last quarter of 2016, compared to the previous quarter, and 3.4 per cent compared to the respective period of 2015.
Prices for retail properties rose 1.5 per cent in October to December, compared to the third quarter, and an annual 2.1 per cent, the institute said.
Warehouse prices rose 0.7 per cent on a quarterly basis and 1.9 per cent annually, while office space recorded a rise of 1.6 and 4.7 respectively.
In the last quarter of 2016, buyers had to pay 2.3 per cent more to buy holiday apartments and 2.1 per cent more to acquire a holiday home, compared to the previous quarter.
Prices for holiday homes, a category introduced in the first quarter of 2016, have since gone up 7 per cent in the case of apartments and 4 per cent in the case of houses.
The highest quarterly apartment price increase was in Larnaca in Q4, where buyers had to pay 3.3 per cent more. Limassol led when it came to house prices with 1.8 per cent, RICS said.
The highest annual increase in apartment prices was again in Larnaca with 7.6 per cent, and in the case of houses in Paphos, with 8.7 per cent. The highest quarterly increase in office prices was in Nicosia, with 2.9 per cent, while Limassol registered the highest annual increase of 11 per cent.
The increase in property prices resulted in rising rents. Apartment rents rose a quarterly 1.8 per cent in the fourth quarter of 2016, and an annual 6.6 per cent. House rents rose 2.9 per cent and 8.7 per cent respectively, the institute said. Office and shop rents rose a quarterly 4.3 per cent and 0.8 per cent, and an annual 7.9 per cent and 4.9 per cent respectively. Warehouse rents remained stable compared to the previous quarter, rising 3.5 per cent compared to the fourth quarter of 2015.