The latest 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, said:
“According to the first quarter of 2024 data, the market has shown stabilisation for most of the property categories, apart from Apartments which continue their upward movement, with notable increases in Nicosia and Paphos.
“Houses recorded increases in Nicosia but remained stable in other districts.
“Warehouses and Offices recorded marginal increases, with the best performers being Nicosia for Warehouses and Larnaca for Offices.
“Retail recorded zero increases, with a marginal drop in Larnaca, continuing the trend from the fourth quarter of 2023.
Declines were recorded in Warehouse values in Limassol and Paphos, while Paphos recorded a decline in Retail, also.
“Rental values showed increases, with residential sector properties (apartments, houses) taking the lead.
“All in all, the Index shows signs of stabilisation in most categories with some positive performances also noted”.
Speaking on behalf of RICS, Simon Rubinsohn, RICS Chief Economist, commented:
“The Cypriot economy continues to be underpinned by the firm trend in domestic demand even if concerns persist about the scale of the current account deficit.
“This generally positive picture continues to underpin the real estate market as highlighted both in this report and the improvement in sentiment captured by respondents from Cyprus in the recently released Q1 RICS Global Commercial Property Monitor.”
Extracts from the price and rental index
Market values year-on-year
During 2024 Q1, solid increases were recorded in Apartment prices, with Houses posting more modest gains. Offices and Warehouses also saw small rises over the period, whilst, in contrast, Retail prices were slightly lower, continuing the trend from 2023 Q4.
- Apartments +9.30%
- Houses +5.49%
- Retail premises +0.08%
- Warehouses +3.75%
- Offices +2.54%
Holiday home prices
Holiday assets (Apartments & Houses) recorded almost no increases in Q1 in contrast to the generally positive trend in recent years.
- Holiday apartments +6.72%
- Holiday houses +5.47%
Rental values year-on-year
Year-on-year, rental values showed increases in all asset categories, the highest being in Apartments, followed closely by Houses. Retail and Warehouse asset classes are at the lower end of the scale, recording small, if not marginal, increases.
- Apartments +10.57%
- Houses +9.55%
- Retail premises +0.98%
- Warehouses +1.82%
- Offices +5.53%
- Holiday apartments +7.44%
- Holiday houses +6.45%
Rental yields
Largest increases in rental yields were in Offices followed by Houses.
Retail and Apartment and holiday properties recorded marginal increases.
- Apartments 5.44%
- Houses 2.97%
- Retail 5.83%
- Warehouse 4.22%
- Office 5.51%
- Holiday Apartments 5.75%
- 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 The RICS Cyprus Property Index with KPMG in Cyprus.
