09.08.2024
The 58th quarterly edition of the RICS Cyprus Property Price Index, in collaboration with KPMG in Cyprus, presented data on property sale and rental prices across all districts of Cyprus and key property types.
Christophoros Anayiotos, representing KPMG in Cyprus, noted that in Q2 2024, the real estate market demonstrated growth compared to last year’s figures. There are noticeable differences between districts on a quarterly level. Apartments remain the most sought-after type of property in all districts, but the most significant growth was recorded in the house category in Nicosia. There was also a slight increase in prices for warehouses and offices.
The highest price increases were seen in Nicosia, while Limassol and Larnaca showed a decline in prices for most property categories. Prices in Paphos and Famagusta remained stable, with minor increases in some segments.
Rental prices continued to rise, with the highest increases seen in office spaces, apartments, and houses. Overall, the index for the current quarter confirms the ongoing increase in rental costs compared to previous quarters, although some categories are seeing a slowdown.
RICS Chief Economist Simon Rubinsohn noted that despite some stability in the latest property price assessments in Cyprus, the overall economic situation remains favorable. Economic growth forecasts are being revised upward following a strong start to the year, and inflation, while exceeding the target level, is expected to gradually return to 2%. Higher investments and positive demographic trends could improve the economy’s long-term prospects.
Contents
Excerpts from the RICS/KPMG Price and Rental Index
Market Value
The data for the second quarter shows price increases across most property types. The largest growth was seen in apartment prices, followed by houses, offices, and warehouses. Prices for commercial properties continue to decline compared to last year.
| Apartments | +6,32% |
| Houses | +2,89% |
| Commercial Property | -0,55% |
| Warehouses | +1,77% |
| Offices | +2,41% |
Holiday Home Prices
Over the past year, prices for holiday apartments and houses also increased, with holiday apartments seeing a slightly higher price increase.
| Holiday Apartments | +3,29% |
| Holiday Houses | +2,96% |
Rental Prices
Rental prices increased across most property categories, with the largest increases seen in offices, houses, and apartments. Warehouse rental prices continue to rise, though more modestly, while rental prices for commercial properties are declining.
| Apartments | +5,48% |
| Houses | +5,61% |
| Commercial Property | -0,84% |
| Warehouses | +1,38% |
| Offices | +6,56% |
| Holiday Apartments | +4,11% |
| Holiday Houses | +4,50% |
Rental Yields
Rental yields changed slightly compared to last year, with minor decreases in most categories. However, offices showed a noticeable increase in yield.
| Apartments | -5,43% |
| Houses | +3,00% |
| Commercial Property | -5,80% |
| Warehouses | -4,25% |
| Offices | +5,61% |
| Holiday Apartments | +5,77% |
| Holiday Houses | +2,78% |
The RICS Cyprus Property Price Index, in collaboration with KPMG, tracks hypothetical buildings with specific characteristics. The methodology underlying the index was developed by the University of Reading. The price per square meter is calculated based on the total exterior area of the building, including living space and covered verandas, but excluding communal areas. Price assessments are conducted by certified RICS professionals operating in the relevant markets.
