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Welcome to the latest edition of AXIA Chartered Surveyors' Annual Property Market Analysis. As we navigate through another year of dynamic changes in the global and local property markets, our team continues to leverage its profound expertise and deep understanding of the Cyprus property landscape to bring you the most accurate, insightful, and forward-looking analysis available.

The second edition of Neapolis Property Price Index has been released!

Apartment prices have exhibited a consistent upward trajectory across all districts, with positive trends persisting for successive periods. Specifically, apartment prices have experienced continuous growth for 32 uninterrupted quarters in Limassol and Larnaca, 29 quarters in Nicosia, 23 quarters in Famagusta, and 7 quarters in Pafos. In contrast, prices of houses have been steadily declining, with negative trends observed in almost all districts. House prices have been falling for 8 consecutive quarters in Nicosia, 5 quarters in Limassol, 4 quarters in Famagusta and 3 quarters in Paphos, except for Larnaca a positive sign was observed. Indices point to increased demand for apartments, while the persistent fall in house prices may indicate reduced purchasing power for larger dwellings among local buyers and despite increased foreign interest, as suggested by DLS statistics.

We are delighted to introduce the Neapolis Property Price Index (NPPI), a groundbreaking initiative by the Department of Real Estate at Neapolis University Pafos. This index is designed to serve a diverse set of needs, benefiting not just our academic community but also real estate professionals, investors, and policymakers.
Our index aims to be an impartial, credible, and up-to-date source of information that enhances market transparency and facilitates informed decision-making for both consumers and professionals. The department has chosen to base this index on actual property transaction data for its inaugural release. We believe that actual transaction data, as opposed to notional or appraisal-based indices, provide a more accurate and unbiased reflection of market realities. Actual transactions capture what buyers are willing to pay, and sellers are willing to accept, thus giving us a true snapshot of the market at any given moment. This is crucial for reducing biases, enhancing investor confidence, and aiding in more precise analytical and policy-related work.
Academically, the NPPI aims to provide a rich dataset for scholarly research in areas like property valuation methodologies, market trends, and housing policies. It offers an exceptional learning environment for our students, allowing them to gain hands-on experience in data analytics, market research, and property valuation. Industry collaboration is another key objective. We encourage and invite partnerships with real estate agencies, property valuers, and governmental organizations. We invite you to engage with this seminal project. Your feedback and collaboration are invaluable for its continuous improvement and success.
Last but not least, I would also like to extend a warm welcome and heartfelt thanks to Stelios Apostolidis, the newest member of our department. His expertise and dedication are invaluable additions that promise to enrich our academic and research endeavors.
Best regards and enjoy the index!

Ανάλυση της Κτηματαφοράς της Κύπρου για το 2020. Πρόκειται για αναλυτική επισκόπηση της κυπριακής κτηματαγοράς που συντάχθηκε απο την ΑΧΙΑ. 

The Governing Council of RICS today voted unanimously to proceed with an independent review into the events that took place in 2018/19, the outcome of which will be made public. Having listened to the views of members in recent weeks, and appreciating their need for further reassurance, Governing Council has decided to appoint an experienced, fully independent individual to undertake the review according to terms of reference which it will set.

References to Press

The integration of Artificial Intelligence (AI) in real estate and more specifically in property valuations marks a transformative era in the industry.
Without data, AI does not exist. AI’s capabilities in data analysis, prediction, and automation are revolutionising how properties are valued, managed, and traded.

«Θετικό βήμα η εξαγγελία των μέτρων και η παραδοχή του προβλήματος, αλλά… χρειάζεται ακόμη πολλή δουλειά μέχρι την υλοποίηση» – Πώς φθάσαμε στο αδιέξοδο – «Πολύ θολό το τοπίο… Εξαγγέλθηκε ξανά και απέτυχε» – Ποια μέτρα θα βοηθούσαν – Ο Δρ. Θωμάς Δημόπουλος αναλύει στη Cyprus Times τη νέα στεγαστική πολιτική που παρουσίασε ο ΥΠΕΣ

Ο Πλάτωνας, υπήρξε ένας από τους πιο επιδραστικούς φιλόσοφους της ιστορίας. Οι διάλογοί του, γεμάτοι από πληθώρα ιδεών, καλύπτουν μια ευρεία γκάμα θεμάτων.

Μεταξύ αυτών,  ένα όχι και τόσο προβεβλημένο έργο του έχει να κάνει με την κριτική του στη γραφή, όπως καταγράφεται στον διάλογο "Φαίδρος". Θεωρώ πως το έργο αυτό δεν έχει ανάλογη προβολή με τα υπόλοιπα διότι είναι αστείο κάποιος να αμφισβητήσει τη γραφή αν και οι ανησυχίες που εκφράζει ο Πλάτωνας είναι πολύ σημαντικές. Προσωπικά θεωρώ πως οι ανησυχίες αυτές είναι όμοιες με τις σύγχρονες ανησυχίες για την τεχνητή νοημοσύνη και της εφαρμογές της τόσο στο real estate όσο και στους υπόλοιπους τομείς.

Την εμφάνισή τους στην κυπριακή αγορά κάνουν τα dark stores, τα οποία δημιουργούνται με αποκλειστικό σκοπό την ετοιμασία και παράδοση παραγγελιών στους καταναλωτές.

Από την γνωστή σε όλους Amazon στις ΗΠΑ, πλέον η νέα τάση στο εμπόριο αφίχθηκε και στην Κύπρο.

Useful Info

Ο Θωμάς Δημόπουλος, Ιδρυτής και Διευθύνων Σύμβουλος στην εταιρεία AXIA Chartered Surveyors, ως καλεσμένος του Τασου Μπιλιανίδη, εξηγεί πώς υπολογίζεται η αγοραία αξία ενός ακινήτου από τους εκτιμητές και γιατί οι εκτιμήσεις έχουν αποκλίσεις μεταξύ διαφορετικών εκτιμητών. Συζητά για τα πρότυπα που ακολουθούνται στις εκτιμήσεις και τις ενδεχόμενες αλλαγές αυτών στο μέλλον, καθώς επίσης αναλύει το προπτυχιακό και μεταπτυχιακό πρόγραμμα του Πανεπιστήμιου Νεάπολις στη Πάφο στο τομέα του Real Estate. Στη συνέχεια, σχολιάζεται το άρθρο του καλεσμένου περί τη νέα στεγαστική πολιτική της κυβέρνησης και εκφράζει τις απόψεις του για την μη αξιοποίηση του αδρανή πλούτου και τη γραφειοκρατία στο χώρο των ακινήτων. Σημειώνεται από καλεσμένο ότι ένας σωστός εκτιμητής χρησιμοποιεί και χρειάζεται αξιόπιστα δεδομένα και επισημαίνει την σημαντικότερα των δεδομένων για καλύτερες προβλέψεις στο τομέα των ακινήτων. Τέλος γίνεται αναφορά στο δείκτη τιμών του Πανεπιστήμιου Νεάπολις με σκοπό να αναλυθούν σε επόμενο επεισόδιο.

Identifying the age of a building is not just about finding a date but understanding its history, significance, and place in the community's architectural landscape. As real estate professionals, knowledge of a property's age can be pivotal for valuations, development appraisals, and offering clients comprehensive advice.

The IVSC issues Perspectives Papers from time to time, which focus on pertinent valuation topics and
emerging issues. Perspectives Papers serve a number of purposes: they initiate and foster debate on
valuation topics as they relate to the International Valuation Standards (IVS); they provide contextual
information on a topic from the perspective of the standard setter; and they support the valuation
community in their application of IVS through guidance and case studies.
Perspectives Papers are complementary to the IVS and do not replace or supersede the standards.
Valuers have a responsibility to read and follow the standards when carrying out valuations.

Μάθετε για το Δικαίωμα Διάβασης (Πέρασμα) στην Κύπρο, τις προϋποθέσεις, τη διαδικασία παραχώρησης και την αποζημίωση που απαιτείται. 

Publications

The energy efficiency of existing buildings is a crucial factor in addressing energy consumption challenges in European countries, accounting for nearly 40% of the total energy usage. One such country is Cyprus, which faces significant challenges in transforming its existing building stock into energy-efficient and sustainable structures. To face this situation, extensive focus has been made by the government on the energy-efficient retrofit of non-residential public buildings erected before 2010, which lack any energy efficiency measures. This study examines the case of the Pano Polemidia Cultural Hall (PPCH), which represents the building stock of that period. Through the simulation of two scenarios, before and after the adoption of retrofit measures, the existing energy performance is initially evaluated and then the adoption of sustainable solutions, which improve substantially the energy efficiency and can be easily adopted from the relevant authorities, is explored. These retrofit measures include installation of HVAC system, covering of the shell of the building with external thermal insulation, lighting replacement with LED devices, installation of PV system and solar panels, and replacement of the external openings with aluminum windows. The results derived show that the energy consumption of the building was reduced from 468 to 218 kWh/m2·yr, with renewable energy sources (RESs) contributing 177 kWh/m2·yr, the CO2 emissions were reduced from 136.73 to 11.5 kg/m2·yr, while the reduction in energy consumption per sector ranged from 25% in lighting to 83% in hot water. Therefore, it is evident that a comprehensive retrofitting plan can transform the PPCH into a near-zero energy consumption building that also provides value to the local community and can act as a successful example for any other non-residential buildings with similar characteristics.

In recent years, the desire and requirement for green buildings have increased. The aim of this research is to determine and confirm the increased request for green properties and to investigate whether this is related to a new need or simply a desire of buyers. Moreover, the paper examines people’s knowledge of greenness and sustainability and their wish to live and work in sustainable buildings. The methodology used for this research is based on quantitative research methods with the use of questionnaires to better understand the residents’ awareness, needs, and desires related to sustainability. The research was based on the hypothesis that increased knowledge and awareness of sustainable design can affect the real estate market. Secondly, this research examined whether the increased desire and need for sustainable buildings may increase the market value of sustainable buildings and if people with higher incomes desire green buildings more. Finally, the last hypothesis examined regarded the differences between residential and commercial buildings in terms of sustainable design. The study explored whether buyers will pay extra to purchase a sustainable property and how sustainability can affect the market value and the construction industry. The participants who took part in the research study were living and working in Cyprus. One of the significant outcomes was the fact that people who have knowledge and awareness related to sustainability are willing to pay extra to purchase green properties. Another interesting outcome was that most people have knowledge of sustainable building design. This awareness is crucial as people’s desire is the strongest driver, which can influence them to invest more in green real estate.

This study employs the statistical method of Multiple Linear Regression analysis (MLR) to develop an Automated Valuation Model (AVM) for estimating land values by utilizing transaction-based data in Limassol, Cyprus. The authors focus on the confidence level and accuracy of the value estimated by an AVM. Thus, the developed AVM was tested in two contrasting areas of Limassol in terms of location characteristics and market conditions. Most AVMs contain a statistical method to generate the estimated value of a real estate property. However, the outcome of a statistical method is verified by statistical measures. Therefore, if the validation of the predicted value for its accuracy derives from the statistical metrics of the model, then the explanatory variables cannot remain constant. It is implied that the AVM in order to grant the highest statistical metrics for a given property valuation requires different combination of independent variables in different locations, which means that the parameters of the model should change or adjust for every case to obtain the best fit model. The authors demonstrate that the best fit model is obtained when several models are executed with alternative combinations of variables. Hence, the best fit to the regression is given by the model with the better statistical measures when compared to the other models. Consequently, the predicted value is supported by statistical significance and can be adopted at a high confidence level.

Property valuation evolved from simple empirical judgements to automated valuation models and their application have extended from single property to mass valuation. Many governments across the world have used AVMs to get a valuation in thousands of properties for tax related purposes. The literature review is extensive and it is growing day by day. The island of Cyprus was introduced to computer assistant mass appraisal (CAMA) in 2013 when the Department of Land and Surveys (DLS) performed a general valuation and then to revaluation in 2018.  The aim of this research is to provide more transparency to the reliability of the data used in the latest general valuation. An automated valuation model was developed, using the MRA method and Hedonic Pricing Model, to test the performance of the data and compare them with the minimum standards a valuation model should have according to the International Association of Assessing Officers (IAAO).  A case study using a holdout sample with data from Lakatamia Municipality was created to observe the reliability of the data but also to improve the accuracy of the Automatic Valuation Model. Three regressions were carried out: a) Basic regression with 503 observations and 10 variables, b) Regression with the previous variables plus 10 nearest neighbors as predictors and c) Regression with the previous variables plus 10 nearest neighbors as predictors, with 450 best observations – deleted outliers based on absolute error. The coefficient of determination (R-squared) measures the goodness of fit of the regression line, in other words, how close the data are to the estimated line. Initially the R-squared was 0.319 which is above IAAO standards but it was increased to 0.765 after the application of the third model. This accuracy showing better performance than the mass valuation system applied by the Department of Land and Surveys in Cyprus with accuracy of 0.384 Concluding the research ends with a critical discussion about the reliability of the data and some suggestions that could be applied by the DLS to improve the performance of the data.  It is worth mentioning that the Cypriot data have a limitation due to the high heterogeneity found between properties.

This research suggests improvements to the macroeconomic housing
indices of a thin real estate market, such as that of Cyprus, by testing
various index construction methods with transaction-based data.
Authors employ around 80% of the total number of apartment transfers
documented at the Department of Lands and Surveys (DLS) of
Cyprus, spanning from the first quarter of 2015 to the second quarter
of 2022. They utilize this data to generate comprehensive indices
at both the national and district levels. Authors studied, analyzed,
and identified the deficiencies of the DLS database and tested the
sample with six different methods. Log-linear time dummy hedonic
models were found to explain the variation of prices better than
other methods, mainly due to their ability to handle the diversity of
properties in terms of location and physical characteristics and proposed
techniques to deal with the issues of the standard time
dummy (STD) and rolling time dummy (RTD) methods, regarding
index revisions and low transaction volume during periods of downturns,
respectively. Furthermore, a hybrid dependent variable of
actual and appraised prices, that is, the accepted price, extracts
explicit significantly better statistical measures. Additionally, the overall
model fit was enhanced by introducing locality dummy variables
and, through different combinations of attributes, captured the optimal
results per district. Eventually, when the introduced transaction based
indices were compared to the corresponding existing published
indices, which are based on non-actual data, we saw some
resemblances, but overall, there were wide deviations.


A lot of discussion takes place lately about whether an AVM can replace the valuations made by humans. But what is an AVM? AVM stands for "Automated Valuation Model." It is a mathematical model – computer based- that uses statistical techniques, algorithms, and data to estimate the value of a property.

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