GENERAL REMARKS
Cyprus property market is maintaining a positive outlook and offering attractive investment opportunities, despite inflationary pressures and rising interest rates affecting much of Europe.
Cyprus’s commercial real estate market is particularly appealing to foreign companies, attracted by the island’s high quality of life, strategic location, and favourable tax system.
Foreign investment continues to drive the residential sector in both countries, supplemented by local demand.
Luxury properties continued to bolster the Cypriot market, with total sales reaching €2 billion, a trend persisting into 2024.
Class A office space also remains in high demand.
Commercial property demand in Cyprus has reached five-year high, recovering from the COVID-19 pandemic.
Foreign investment has boosted demand for office space, particularly modern, Class A offices.
Cypriot rental prices increased 8.5% year-on-year in Q1 2024, about 10% higher than 2019 levels.
Office rental prices, which bottomed out in Q1 2022, are now approximately 14% higher.
Limassol and Larnaca lead the Cypriot market, with Nicosia showing steady recovery.
Despite new supply, office rental prices are expected to remain high due to sustained demand and new standards.
The Cypriot Land Registry reports the real estate market is experiencing its strongest seven-month period since 2008.
An anticipated decrease in European Central Bank interest rates is expected to encourage more local buyers. Increased supply of residential properties is also predicted to balance the market over time.
STATS & CHARTS
Eurostat’s House Price Index (HPI) shows house prices fell 0.4% in the euro area but rose 1.3% in the EU in the first quarter of 2024, compared to the same period last year.
Quarterly and annual changes in house prices
Source datasets: prc__hpi_q (compared with the previous quarter) and prc__hpi_q (compared with the same quarter of the previous year
RICS Q4 REPORT
Comments. The Central Bank of Cyprus reports an annual house price increase of 7.8% in Q1 2024, down slightly from 8.3% in Q4 2023.
Apartment prices surged 13.9%, while house prices rose 4.7%.
Luxury properties continues to bolster the Cypriot market, with the total sales reaching €2 billion, a trend persisting into 2024.
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”.
On behalf of KMPG 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 the last year’s price index, apart from Retail which appears the least favourite asset during this period.
Rental values continued to exhibit increases, with Offices in the lead, and the residential sector properties (apartments, houses) following closely. Overall, the Index quarter continues the rental value increase from the previous quarters; however, it records a slowdown in some categories”.
Extracts from the RICS/KMPG price and rental index
Market values year-on-year
Looking at 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 House, 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 Retails recorded slight decreases.
- Apartments +5.48%
- Houses +5.61%
- Retail premises -0.84%
- Warehouses +6.56%
- Holiday apartments +4.11%
- Holidays 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%
CYPRUS PROPERTY MARKET STATS
Foreign buyers acquired 6,900 properties in Cyprus in 2023, a 16% increase from 2022.
Second attachment the Foreign-Buyers Sales & Contracts of Sales for the first 7 months in Cyprus as published by Cyprus Land Registry.
Note: Following modifications to the way the term “alien” is coded inside the DLS Land Information System, the way the statistics are presented has been modified. Consequently, the Department of Land and Surveys suggest to avoid comparing data from 2018 onwards with those of previous years
Contracts of Sales 2023 and 2024
Statistical data, Pancyprian and by district, in relation to the number of contract of sales deposited in the Department of Land and Surveys. Data are presented on a monthly basis. Additionally in the file is presented the percentage of decrease/increase in the number of contract of sales in relation to the corresponding last year period.
Transfers of Sales 2024
Statistical data, Pancyprian and by district, in relation to property sales – transfers on a monthly basis. These figures include the total number of cases (sales), the total number of parcels transferred by sale, the total declared number of transfers and the total accepted amount calculated for the transfer fees purposes.
1/8/24
Gross Domestic Product of Cyprus grew 0.7% in the first quarter of 2024 compared to the previous quarter. Cyprus has a quarterly GDP per capita, of €8,333, €409 higher than the same quarter last year. Charts and data for the progression of the GDP in Cyprus. Also, comparison chart for Cyprus to other countries https://countryeconomy.com/gdp
Please see further link, stating Cyprus GDP for 2024: Cyprus GDP 2024. https://countryeconomy.com/gdp/cyprus
Credit: KMPG , RICS , Cyprus Land Registry & https://ec.europa.eu/