The 57th quarterly publication of the RICS Cyprus Property Index with KPMG in Cyprus records the property price and rental index, tracking property and rental prices across all Cyprus districts and main property types.
Speaking on behalf of KPMG in Cyprus, Christophoros Anayiotos, Head of Real Estate Industry Group, commented, “The upward trend in Cyprus Property Index continued during the fourth quarter of 2023, with Paphos taking the lead in recording overall increases.
“The best performing asset class is again Apartments, followed by Houses, with the highest increases being recorded in Paphos, Larnaca and Limassol. Warehouses and Offices recorded marginal increases, with the best performers being Paphos for both categories.
“Retail recorded zero increases, with a large drop in Larnaca. Rental values showed increases, with holiday apartments and residential sector properties (apartments, houses) taking the lead. All in all, the Index shows positive returns for the residential and holiday properties, supported by a resilient demand during 2023”.
Speaking on behalf of RICS, Simon Rubinsohn, RICS Chief Economist, said, “Real estate continues to perform relatively strongly, particularly the residential sector, despite the higher cost of borrowing. Although some cooling in economic growth is likely this year, surveys suggest businesses in general remain upbeat although there is inevitably a sector skew.
“The positive trend in holiday homes and apartments captured in the Cyprus Property Index is, meanwhile, likely to be sustained by solid growth in tourism; this is also visible in the RICS Commercial Monitor where expectations for hotel performance over the next twelve months remain solid.”
Extracts from the price and rental index
Market values year-on-year
During 2023 Q4, a further increase was recorded in residential properties, with apartments leading the way ahead of Houses. Offices and Warehouses recorded more modest gains whilst, in contrast, retail prices posted a slight decrease on Q3.
- Apartments +9.53%
- Houses +6.47%
- Retail premises +0.26%
- Warehouses +4.97%
- Offices +3.54%
Holiday home prices
Holiday assets (apartments & houses) continue their upward trend in values with both continuing to perform strongly.
- Holiday apartments +7.77%
- Holiday houses +6.63%
Rental values year-on-year
On a year-on-year comparison, rental values showed increases in all asset categories, the highest being in holiday apartments, followed closely by (residential) apartments, then houses. retail and warehouse asset classes are at the lower end of the scale, recording small increases.
- Apartments +14.25%
- Houses +12.22%
- Retail premises +3.15%
- Warehouses +2.55%
- Offices +5.44%
- Holiday apartments +15.77%
- Holiday houses +7.66%
Rental yields
Yields have recorded marginal increases since last year, the largest in holiday apartments followed by apartments.
Retail and offices recorded marginal increases, whilst warehouses are showing a small decrease.
- Apartments 5.48%
- Houses 2.99%
- Retail 5.84%
- Warehouse 4.24%
- Office 5.51%
- Holiday Apartments 5.82%
- Holiday Houses 2.74%
Notional buildings
The RICS Cyprus Property Price Index with KPMG in Cyprus monitors hypothetical or notional buildings, each having specific characteristics. The methodology underpinning Index was developed by the University of Reading.
The price per sqm is based on the Gross External Area of the property (as defined in the RICS’ Code of Measurement Practice 8th Edition), which includes the living area and covered verandas but excludes common areas.
The estimation of price levels is carried out by accredited RICS property professionals who are active in the relevant markets.
Further reading
The full publication can be found on the RICS website at RICS Cyprus Property Index with KPMG in Cyprus.
