The 60th 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, Board Member and Head of the Real Estate Industry Group, stated:
“The first quarter of 2025 presents an overall increase in real estate values in Larnaca, whilst other districts recorded modest increases. The largest rise is recorded in Offices, followed closely by residential sector assets (Apartments and Houses). Modest increases were observed in Warehouses, while Retail experienced a decline, continuing the trend from previous quarters.
“Rental values increased, with the strongest growth in Offices, followed by the residential sector assets. The smallest increase was noted in Retail, once again continuing a trend observed in recent quarters. Overall, the Index shows rises recorded in both sale prices and rental values, although property yields saw very marginal movements”.
On behalf of RICS, Simon Rubinsohn, RICS Chief Economist, commented:
“The Cyprus economy has so far remained relatively resilient in the face of rising geopolitical tensions. However, the heightened level of global macro uncertainty inevitably points to a more challenging environment for policymakers. That said, the real estate market remains solid for the time being with prices generally continuing to edge upwards”.
Extracts from the Q3 2024 RICS/KPMG price and rental index
Market values year-on-year
Looking at the data on a year-on-year comparison, the latest numbers show a strong increase in apartments, followed by offices and houses. warehouses recorded minor increases, while retail once again stands out showing a minor decline.
- Apartments +3.88%
- Houses +2.0%
- Retail premises -0.05%
- Warehouses +1.04%
- Offices +2.84%
Holiday home prices
Looking at these assets over the past year, both holiday apartments and holiday houses are also recording modest gains with apartments leading the way.
- Holiday apartments +1.40%
- Holiday houses +0.35%
Rental values year-on-year
Year-on-year, rental values on balance continue to increase compared with a year earlier with the largest percentage rise found in offices, followed at a distance by apartments, and houses. Modest increases were recorded for holiday apartments and houses, but retail saw a decline.
- Apartments +2.87%
- Houses +2.51%
- Retail premises -0.92%
- Warehouses +1.27%
- Offices +4.39%
- Holiday apartments +1.56%
- Holiday houses +2.26%
Rental yields
Yields have recorded very marginal movements since last year with the only notable movement recorded in Offices.
- Apartments -0.05%
- Houses +0.02%
- Retail -0.05%
- Warehouse +0.01%
- Office +0.08%
- Holiday Apartments +0.01%
- Holiday Houses +0.05%
RICS 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.
About KPMG in Cyprus
KPMG has been operating in Cyprus since 1948 and currently employs more than 750 professionals working from 6 offices across the island. It is a member of KPMG International Limited, a global organisation of independent professional services firms providing Audit, Tax and Advisory services. KPMG operates in 142 countries and territories and has approximately 275,000 people working in member firms around the world. Clients look to KPMG for a consistent standard of service based on high-order professional capabilities, industry insight, local knowledge and expertise
About RICS
We are RICS. Everything we do is designed to effect positive change in the built and natural environments. Through our respected global standards, leading professional progression and our trusted data and insight, we promote and enforce the highest professional standards in the development and management of land, real estate, construction and infrastructure.
Our work with others provides a foundation for confident markets, pioneers, better places to live and work and is a force for positive social impact.
Further reading
The full publication can be found on the RICS website at RICS Cyprus Property Index with KPMG in Cyprus.
