The 58th 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.
On behalf of KPMG in Cyprus, Christophoros Anayiotos, Head of the Real Estate Industry Group, stated:
“According to the index for the second quarter of 2024, the market has shown increases when comparing with last year’s price index, apart from Retail which appears the least favourite asset during this period.
“On a quarterly basis, there is an interestingly visible variation between districts. Apartments seem to be a favourite asset across all districts. However, the highest category increase is recorded in Nicosia Houses. Marginal increases are also recorded in Warehouses and Offices, whilst Retail recorded decreases, with the highest fall arising in Larnaca.
“The best performing district was Nicosia, while Limassol and Larnaca recorded decreases in most asset categories. Paphos and Famagusta recorded a few slight increases and remained stable in most asset pricing.
“Rental values continued to exhibit increases, with Offices in the lead, and the residential sector properties (apartments, houses) following closely. Overall, the Index this quarter continues the rental value increase from previous quarters; however, it records a slowdown in some categories.”.
On behalf of RICS, Simon Rubinsohn, RICS Chief Economist, commented:
“Despite the flatter picture evident in the latest assessment of real estate prices in Cyprus, the macro backdrop remains generally supportive.
“Growth forecasts are on balance being revised upwards after a strong start to the year and although inflation has broken above the target in recent months, it should gradually return to the 2% area.
“Moreover, higher investment and positive demographics are likely to improve the longer-term prospects for the economy”.
Extracts from the RICS/KPMG price and rental index
Market values year-on-year
Looking at the data on a year-on-year comparison, the Q2 numbers show increases in most asset classes, with the largest by far in Apartments, followed by smaller gains in Houses, Offices and lastly Warehouses. Retail once again stands out showing a decline compared with a year earlier.
- Apartments +6.32%
- Houses +2.89%
- Retail premises -0.55%
- Warehouses +1.77%
- Offices +2.41%
Holiday home prices
Over the past year both Holiday Apartments and Holiday Houses are still showing price increases, with Apartments slightly leading the way..
- Holiday apartments +3.29%
- Holiday houses +2.96%
Rental values year-on-year
Year-on-year, rental values showed increases in most asset categories, the highest being in Offices, followed by Houses and Apartments. Warehouse assets are at the lower end of the scale, whilst Retail recorded slight decreases.
- Apartments +5.48%
- Houses +5.61%
- Retail premises -0.84%
- Warehouses +1.38%
- Offices +6.56%
- Holiday apartments +4.11%
- Holiday houses +4.50%
Rental yields
Yields have recorded slight movements since last year most of which are minor decreases. However, Offices recorded a more material increase.
- Apartments -5.43%
- Houses +3.00%
- Retail -5.80%
- Warehouse -4.25%
- Office +5.61%
- Holiday Apartments +5.77%
- Holiday Houses +2.78%
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.
