The Cyprus property market is showing signs of stabilisation, with apartments still the main segment supporting its activity. According to the RICS Cyprus Property Price Index , developed jointly with KPMG, most asset categories showed little change over the reporting period.
In the third quarter of 2024, apartment prices increased by 0.8%, continuing their steady increase. Compared to last year, this segment showed the greatest growth, ahead of residential buildings and office space.
Demand for shops and warehouses remains low, which is holding back their development. However, warehouses have recorded a slight increase in value, while commercial property prices have declined compared to the previous year.
Larnaca and Paphos were the leaders in terms of price increases for apartments. Paphos also saw an increase in residential property prices. Nicosia and Famagusta showed a moderate increase in prices only in the apartment segment. Limassol was an exception, recording a slight decrease in all property categories.
Rental property market
Rents continued to increase year-on-year, with the largest increases in apartments and residential properties. Warehouse and commercial rents remained at the lower end of the growth spectrum.
In the holiday home market, apartment and house prices remained stable compared to the previous quarter. However, year-on-year trends show continued growth, particularly in the apartment and holiday home segments. Paphos and Famagusta recorded a slight increase in holiday home prices, while Limassol recorded a decrease and Larnaca remained stable.
Experts’ opinions on the state of the market
According to RICS chief economist Simon Rubinsohna , despite the stabilization of prices, the overall mood in the global commercial real estate sector remains positive. Rubinsohna noted that demand for residential real estate remains stable, and investor interest continues to grow. He also emphasized that improving lending conditions could support the real estate market in the near future.
Christophoros KPMG’s Anayotos noted that the index in the third quarter reflected minimal changes in most property categories. He added that apartments remained the most in-demand segment, while demand for shops and warehouses remained weak.
At the level of individual districts, Anagiotis singled out Nicosia , where interest in apartments remains high, as well as Paphos and Famagusta , which are showing positive dynamics. At the same time, Limassol is seeing a slight decrease in indicators for all property categories.
