The Cyprus branch of the Royal Institution of Chartered Surveyors (RICS) has published its latest report on changes in the Cyprus Property Price Index.
According to the office's latest data, prices for most categories of housing in the island nation rose in the second quarter of 2024. At the same time, the growth in property values in Cyprus is still below the figures recorded in the fourth quarter of 2009, which turned out to be a record.
In particular, in the second quarter of 2024, on an annual basis, the price of apartments increased by 6.32%, houses by 2.89%, warehouses by 1.77% and offices by 2.41%. Only retail space prices fell by 0.55%.
As far as rents are concerned, almost all categories recorded an increase compared to the corresponding quarter of 2002. The rental value of apartments in Cyprus in the second quarter of 2024 increased by 5.48%, houses by 5.61%, warehouses by 1.38%, offices by 6.56%, holiday apartments by 4.11% and holiday homes by 4.5%. Retail rents fell by 0.84%.
According to the data for the second quarter of 2024, the market shows stabilisation for most property categories, with the exception of the value of apartments and houses, which continues to rise, especially in Nicosia.
The value of warehouses and offices increased slightly, with the best performance in Nicosia for warehouses and Larnaca for offices. The value of shops fell slightly in almost all Cypriot cities. A slight decrease was recorded in Larnaca and Paphos. Finally, the value of warehouses fell in Limassol and Paphos. Overall, the RICS Price Index indicates a positive outlook for the Cypriot property market, especially in the residential sector. This means that investors should take a closer look at these investment opportunities.
Finally, annualised property yields in Cyprus in the second quarter were
- 5.43% for apartments;
- 3% for houses;
- 5.8 per cent for retail premises;
- 4.25% for warehouses;
- 5.61% for offices;
- 5.77 - for holiday apartments;
- 2.78 - for holiday homes.
As a reminder, the Cyprus House Price Index is a quarterly index that measures the change in the average price of residential property. 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.
I do not agree with the increase in rental prices. My personal feeling is that prices have gone down compared to last year. Banks are tightening the rules for accepting money from foreign investors every month, KYC is getting harder to pass. It is also becoming more difficult to do business due to increased inspections. As a result, some people have decided to leave the island, simply because they cannot buy property or spend money freely from their bank accounts. There are fewer people, the number of offers has surpassed demand and prices have started to fall," said Maxim Arte, a broker of DOM Reeal Estate Limassol office.