Demand for property of all types in Cyprus continues to grow, according to the latest edition of the RICS Property Price Index in Cyprus prepared by KPMG.
In the latest edition of the index, KPMG notes that the driving force behind the uptrend is increased demand for apartments and commercial real estate in coastal areas.
Commenting on the results, Christoforos Anagiotos, Head of Real Estate at KPMG, said: “The last quarter of 2021 saw an increase in apartments (most areas), retail (Paphos), warehouses (Larnaca) and offices (Limassol, Paphos).”
Angiotos said that holiday homes are experiencing a slight decline, but the number of apartments in Paphos is growing.
“Overall, the momentum seems to be building towards a positive outlook for the real estate sector, and this is likely to continue into 2022.”
Simon Rubinson, Chief Economist at RICS, commented: “Real estate trends in Cyprus remain generally positive, reflecting the resilience of the economy in the face of various Covid options.
He argued that this was particularly evident in the significant rise in apartment prices, which have risen nationally by about 4% over the past year.
“But, importantly, the latest Cyprus RICS Property Index with KPMG indicates an upward trend in prices for all types of property, reflecting a more robust demand for property across the board,” Rubinson said.
Meanwhile, the improvement in real estate is also recorded by the Central Bank and statistical services.The Central Bank noted that the purchase of apartments mainly supports the ongoing increase in property prices, recorded in the third quarter of 2021.
The house price index recorded a quarterly increase of 0.5% compared to 0.3% in the second quarter of 2021, while on an annualized basis the index increased by 1.2% compared to 0.3% in the same quarter previous year.
According to data published by the Statistical Office, the Cyprus House Price Index for the third quarter of 2021 increased by 2.4% qoq and by 2.2% year on year.
In the second quarter of 2021, prices recorded an annual decline of 4.9%, while quarterly growth rose to 1.2%.