04.11.2023
The 56th quarterly publication of the RICS Cyprus Property Index, in collaboration with KPMG, records the Property and Rental Price Index, tracking property and rental prices across all areas of Cyprus and major property types.
Speaking on behalf of KPMG Cyprus, Christoforos Anagiotos commented: “The upward trend in the Cyprus Property Index continued in the third quarter of 2023, with Larnaca recording significant overall growth. The best asset class is again apartments, followed by houses, with the highest growth recorded in Larnaca and Limassol. The warehouses and offices sector recorded modest growth, with the best performers being Larnaca for offices and Limassol for warehouses.
Retail trade recorded zero growth, with slight declines in Famagusta and Limassol. Rental prices have also increased, with the greatest increases in holiday apartments and residential properties (apartments, houses). Overall, the Cyprus Property Index shows very positive returns for residential and resort properties, which appears to be driven by robust demand.”
Speaking on behalf of RICS, Simon Rubinson, chief economist at RICS, said: “The relatively stable economic picture continues to be reflected in the resilient tone of the Cyprus Property Price Index. Residential property, in its various forms as an asset class, continues to outperform the market and this trend is likely to continue into the first half of 2024, according to feedback from the sentiment-based RICS Cyprus Commercial Property Monitor. Another signal that the macroeconomic situation remains positive is that tenant demand for office space rentals continues to grow, with luxury real estate in particular demand.”
Contents
Excerpts from the Price and Rent Index
Market value annualized
The third quarter of 2023 saw an increase in residential property prices, with apartment prices slightly outpacing house prices. Offices and warehouses also showed slight growth, while retail space remained stable.
- Apartments +9.50%
- Home +6.94%
- Retail premises +0.25%
- Warehouses +5.78%
- Offices +4.74%
Holiday home prices
Leisure assets (condos and homes) continued their upward trend, with both indicators continuing to rise. Over the past year, prices for apartments and holiday homes have increased by more than 7%.
Quarterly changes show that Limassol recorded the largest increase in the number of holiday homes, while outpacing apartments. Meanwhile, in Paphos and Famagusta , the rise in prices for the latter was slightly faster than the former.
Holiday apartments +7.11%
Holiday homes +7.37%
Rental cost per year
Year-on-year, rental values showed growth across all asset categories, with apartments highest, followed by holiday apartments and then houses. The retail and warehouse asset classes are at the lower end of the scale, showing little growth.
- Apartments +18.57%
- Home +12.80%
- Retail premises +3.78%
- Warehouses +2.55%
- Offices +7.45%
- Holiday apartments +18.35%
- Holiday homes +9.99%
Rental yield
Yields recorded a slight increase from last year, with the biggest gains coming from vacation rentals, followed by apartments.
Retail and offices recorded slight increases, while warehouses saw a slight decline.
- Apartments 5.53%
- Homes 2.95%
- Retail trade 5.84%
- Warehouse 4.24%
- Office 5.45%
- Holiday apartments 5.82%
- Holiday homes 2.75%
