The 56th quarterly publication of the RICS Cyprus Property Index

Nov 15, 2023

The 56th 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 third quarter of 2023, with Larnaca recording significant overall increases.

“The best-performing asset class is again Apartments, followed closely by Houses, with the highest increases being recorded in Larnaca and Limassol. Warehouses and Offices recorded modest increases, with the best performers being Larnaca for Offices and Limassol for Warehouses.

“Retail recorded zero increases, with marginal decreases in Famagusta and Limassol. Rental values also increased, with holiday apartments and residential sector properties (apartments, houses) exhibiting the largest increases. Overall, the Cyprus Property Index shows very positive returns for the residential sector and the holiday properties, which seem to be driven by resilient demand”.

Speaking on behalf of RICS, Simon Rubinsohn, RICS Chief Economist, said, “The relatively solid economic picture continues to be reflected in the firm tone of the Cyprus Property Price Index. Residential, in its various forms as an asset class, continues to outperform, and looking at the feedback to the sentiment-based RICS Cyprus Commercial Property Monitor, this is likely to continue into the first half of 2024.”

“Meanwhile, in another signal that the macro environment is still positive, occupier demand to take up office space is continuing to grow with prime real estate particularly sought after.”

Extracts from the price and rental index

Market values year-on-year

During the third quarter of 2023, increases were recorded in the price of residential properties, with apartments running slightly ahead of houses. Offices and warehouses also recorded marginal gains, while retail premises remained stable.

  • Apartments +9.50%
  • Houses +6.94%
  • Retail premises +0.25%
  • Warehouses +5.78%
  • Offices +4.74%

Holiday home prices

Holiday assets (apartments & houses) continued their upward trend with both continuing to perform strongly. Over the past year, both Holiday Apartments and Holiday Houses have seen price increases in excess of 7%.

Looking at the numbers at a district level, the quarterly changes show Limassol recording the largest increase in Holiday Houses and outperforming Apartments in the process. Meanwhile, in Paphos and Famagusta the rise in prices for the latter slightly outperformed the former.

  • Holiday apartments +7.11%
  • Holiday houses +7.37%
  • Rental values year-on-year

Year-on-year rental values showed increases in all asset categories, the highest being in Apartments, followed closely by Holiday Apartments, then Houses. Retail and Warehouse asset classes are at the lower end of the scale, recording small increases.

  • Apartments +18.57%
  • Houses +12.80%
  • Retail premises +3.78%
  • Warehouses +2.55%
  • Offices +7.45%
  • Holiday apartments +18.35%
  • Holiday houses +9.99%

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 5.53%
  • Houses 2.95%
  • Retail 5.84%
  • Warehouse 4.24%
  • Office 5.45%
  • Holiday Apartments 5.82%
  • Holiday Houses 2.75%