In their overview of real estate activity in Cyprus during the third quarter of 2022 RICS Cyprus with KPMG reports increases in the values of most property categories in their Cyprus Property Index, albeit they all still remain below where they were in the base period for the series (2009Q4).
Residential continues to be a strong performer with the trend in both houses and apartments solidly positive. For the commercial sector, all categories have shown increases, to a greater or lesser extent, over the past quarter, with offices at the top end of the spectrum and retail recording the most modest gains.
Market values year-on-year
An island-wide increase was observed in the value of all property types:
- Apartments up 11.48%
- Houses up 7.56%
- Retail premises up 2.32%
- Warehouses up 4.26%
- Offices up 7.92%
Holiday homes
Holiday apartments and houses continue to experience a firm upward trend in their values following the Covid related drop in 2020 and the early part of 2021.
- Holiday apartments up 7.65%
- Holiday houses up 6.93%
Rental values year-on-year
Rental values showed an increase across all property types, with the largest increase recorded in houses, followed very closely by holiday apartments. The smallest increases were recorded in retail and warehouses.
- Apartments up 15.54%
- Houses up 16.76%
- Retail premises up 1.50%
- Warehouses up 2.71%
- Offices up 9.18%
- Holiday apartments up 16.36%
- Holiday houses up 6.39%
Rental yields
In the third quarter of 2022, rental yields stood at:
- Apartments 5.11%
- Houses 2.79%
- Retail 5.64%
- Warehouse 4.38%
- Office 5.22%
- Holiday Apartments 5.27%
- Holiday Houses 2.69%
Comments from KPMG and RICS
On behalf of KPMG in Cyprus, Christophoros Anayiotos, Head of Real Estate Industry Group, stated:
“The third quarter of 2022 shows an endurance of the increasing trend in property values, with notable increases in Famagusta in almost all categories. The best performers are again Apartments, whilst Offices are making a comeback. Retailing and Warehouses exhibited minor adjustments, with minor decreases demonstrated in Paphos. The upward trend of construction costs has begun to slow down, albeit still at a high level, however increasing inflation and supply chain issues are still expected to affect the property sector overall”.
On behalf of RICS, Simon Rubinsohn, RICS Chief Economist, commented:
“Although the real estate sector remains resilient for now according to the latest results, the more challenging the macro environment is, it is likely to gradually have some impact both on activity and pricing. That said, feedback to the RICS sentiment survey which complements this report suggests forward looking expectations have not materially shifted in the face of the uncertainty fuelled by the global energy crisis with demand indicators still showing a positive trend”.
Full details may be found in the RICS Cyprus Property Index with KPMG in Cyprus for Quarter 3 2022
