2023 Doing Business in Cyprus (India Edition)

DOING BUSINESS C YPRUS
53
INDIA EDITION
PROPERTY-PRICE INDICES
There are three regular property-price indices
produced in Cyprus and one which Sapienta
Economics calculates from parcel transfers.
u The Cystat index is hedonic (adjusted for changes in
quality) and is based on actual sales. The Cystat index does
not give a breakdown by region or by property type.
u The Central Bank of Cyprus index is also hedonic but is based on bank
valuations, as opposed to current sales, although recent sales are also
considered in valuations. The Central Bank of Cyprus index gives a
breakdown by region and by property type (apartments and houses).
u The Ask WiRE index, which is a fairly new index largely based
on actual sales prices but also adjusted to consider ‘thin trading
and an inherent lag in price recording’ in Cyprus. It gives a
breakdown by region and property type, including commercial
property (retail, warehouses and offices). It also distinguishes
between residential and holiday houses/apartments.
u Sapienta Economics also uses data from the Department of Lands
and Surveys (Land Registry) to calculate the average price per unit
of parcel transfers. This is not a market price, as it will include, for
example, debt-for-property swaps by banks, and parcels may also
vary in size. However, it can be an indicator of forced acquisitions.
The three public indices give different results because of their different
focus. Out of the three the Central Bank probably lags the most, as
property valuations tend to be made on the basis of sales in the previous
period. However, it has the advantage of being based on a larger data set
than the Cystat index, especially in periods when sales are stagnant.