The property market in Cyprus continues to show signs of stabilisation.
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, flat prices in the island nation rose the most in the fourth quarter of 2024 - by 3.39%. At the same time, the price of houses rose by only 0.95%, while warehouses and offices increased by 0.96% and 1.74% respectively. The opposite trend was observed for the value of shops, which fell by 0.21%. The prices of dwellings and holiday homes also rose slightly over the past year, by 0.43% and 0.25% respectively.
On the other hand, rents for most property categories in Cyprus rose in the fourth quarter of 2024.
Offices (4.05%) led the way, followed by holiday homes (+2.3%), houses (+2.29%), apartments (+2.01%) and warehouses (+1.37%). In contrast, the value of shops and holiday homes fell by 1.08% and 1.39% respectively.
Finally, annualised property returns in Cyprus in Q3 were
- -0.07% - for apartments;
- +0.04% - for houses;
- -0.05% - for shops;
- +0.02% - for warehouses;
- +0.13% - for offices;
- -0.11% - for dwellings;
- +0.04% - for holiday homes.
The index for the fourth quarter of 2024 shows a stabilisation of the Cypriot property market, continuing from previous quarters. Most asset categories show little or no change in prices, with the exception of warehouses and apartments, with changes in Paphos and Nicosia. Limassol, Larnaca and Famagusta recorded no price increases, while retail prices fell slightly. Rental values continue to rise, with a significant increase in offices, followed by growth in residential properties, while retail and holiday homes recorded falls. Overall, the index reflects an increase in rental values compared to previous years, although property yields showed very little change,' commented KPMG Cyprus representative Christoforos Anayiotos.
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 constuctions 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.