The property market in Cyprus is showing signs of stabilising. At the same time, flats continue to be the only category of housing to show steady growth.
This is the conclusion reached by experts from the Cyprus branch of the Royal Institution of Chartered Surveyors (RICS) and KPMG in Cyprus, who have updated the quarterly 'Cyprus Property Price Index'.
According to the new report, the price of apartments in the island nation rose by 4.93% in the third quarter of 2024, while the price of houses rose by 1.38%, warehouses by 0.57%, offices by 1.35% and retail space by 0.72%.
Looking at Cypriot cities, Larnaca and Paphos recorded the most significant price increases for dwellings and office space. In addition, in Paphos, the price of houses rose in the third quarter of 2002. In Nicosia and the free areas of Famagusta, the price of dwellings also increased, but not as much as in Larnaca and Paphos. In Limassol, on the other hand, prices fell slightly across all property categories.
In the third quarter of 2024, the Cypriot housing market showed growth compared to last year's figures. Demand for residential property, especially apartments, remains strong. Investors are actively putting their money into property on the island,' said Simon Rubinson, chief economist at RICS.
As for rental prices, from July to September they rose for most property categories in Cyprus.
Flats led the way (+10.57%), followed by houses (+9.55%), apartments (+7.44%), holiday homes (+6.45%), offices (+5.53%), warehouses (+1.83%) and shops (+0.98).
Finally, annualised property yields in Cyprus in Q3 were
- 5.4% - for apartments;
- 3.02% for houses;
- 5.77% for shops;
- 4.27% for warehouses;
- 5.64% for offices;
- 5.71 - for holiday homes;
- 2.79 - for holiday homes.
RICS Chief Economist, Simon Rubinson, said that while there has been some stability in recent property price valuations in Cyprus, the overall economic situation remains favourable. Economic growth forecasts are being revised upwards following a successful start to the year and inflation, although above target, is expected to gradually return to the % mark. Higher investment and positive demographic dynamics could improve the long-term prospects for the economy.
As a reminder, the Cyprus Property Price Index is a quarterly index that measures the change in average residential property prices. It covers all types of residential property, both new and second hand. The source of the data used to compile the indices is the Department of Lands and Surveys of the Ministry of the Interior. The data cover all areas under the control of the Government of the Republic of Cyprus.