16.02.2024
The 57th quarterly publication of the RICS Cyprus Property Index, in collaboration with KPMG Cyprus, records property and rental price indices, tracking property and rental prices across all areas of Cyprus and major property types.
Speaking on behalf of KPMG Cyprus, Christophor Anagiotos said: “The upward trend in the Cyprus Property Index continued in the fourth quarter of 2023, with Paphos leading the overall index growth. The best performing asset class is again apartments, followed by houses, with the highest demand growth recorded in Paphos, Larnaca and Limassol . Warehouses and offices recorded slight growth, with Paphos performing best in both categories. Retail trade recorded zero growth, with Larnaca experiencing a significant decline. The cost of rent has increased, mainly for holiday apartments, apartments and houses.”
Extracts from the Cyprus Property Sales and Rental Price Index for the fourth quarter of 2023.
In the fourth quarter of 2023, a further increase in the value of residential real estate was recorded, with prices for apartments (+9.53%) and houses (+6.47%) increasing the most. Prices for offices (+3.54%) and warehouses (+4.97%) recorded more modest growth, while prices for retail premises (+0.26%) fell slightly in the third quarter.
Apartments and holiday homes continue to rise in price, +7.77% and +6.63% respectively.
Compared to last year, rental values increased across all asset categories, with the highest rates being for holiday apartments (+15.77%), residential apartments (+14.25%) and houses (+12.22%). A slight increase in rental costs was also recorded for retail premises (+3.15%), warehouses (+2.55%), offices +5.44% and holiday homes (+7.66%).
Rental yields have increased slightly since last year, with the biggest increases coming from vacation rentals (5.82%) and condos (5.48%). Retail (5.84%) and office (5.51%) also recorded slight increases, while yields from warehouses (4.24%), homes (2.99%) and holiday homes (2.74%) %) there is a slight decrease.
