19.02.2022
Real estate prices are slightly higher, however, rents jumped the most in the last quarter of last year.
Real estate transactions continued to recover from the effects of the pandemic in the fourth quarter of 2021, according to the RICS Cyprus Property Index, in partnership with KPMG Cyprus. During this period, an overall increase of 15% was recorded, which is similar to the previous year. The total number of registered sales contracts increased by 34% compared to the previous quarter and by 33% compared to the previous year.
The number of properties sold to foreigners (outside the EU) with registered contracts increased by 20% compared to the previous quarter, but by 30% compared to the previous year. The issuance of overdue loans and insolvency in most banks has decreased, although they still exist, but on a smaller scale than in previous years.
Сapital values
The real estate price index registers mostly quarterly growth with a slight decrease in the number of holiday apartments. Small cuts were also seen in houses for Nicosia and Famagusta.
The cost of holiday homes on a quarterly basis across Cyprus increased by 0.30% for apartments but decreased by -0.70% for houses. The largest increase was recorded in Paphos at 1.81% for holiday homes, while the largest decrease was recorded in Limassol at -1.5% for holiday homes.Across Cyprus, year-on-year prices increased by 1.47% in apartments with no increase in houses, by 0.34% in retail, by 0.48% in warehouses and by 0.45% in offices. The largest increase was recorded in Paphos at 2.92% and in Nicosia at 2.24%.
Rental prices
In Cyprus, most of the rent grew quarterly: offices increased by 1.58%, warehouses – by 1.34%, apartments – by 1.23%, retail premises – by 0.94%, houses – by 0.65%.
Small reductions were recorded in holiday apartments (-0.12%) and holiday homes (-0.53%).
On an annualized basis, rents increased by 6.1% for apartments, 5% for houses, 3.4% for warehouses, 1.7% for retail space and 1.6% for offices.
Initial yield
In Q4 2021, the average gross yield was 4.9% for apartments, 2.6% for homes, 5.7% for retail, 4.5% for warehouses and 5.2% for offices.
