The latest RICS Cyprus Property Price Index with KPMG in Cyprus has been released, providing insight into property price trends and rental values across the country for the fourth quarter of 2024. The index tracks fluctuations across all major districts and property types, offering a comprehensive view of the real estate market.
Market Trends and Stabilization
According to Christophoros Anayiotos, Board Member and Head of the Real Estate Industry Group at KPMG in Cyprus, property prices have remained largely stable, continuing the trend observed in previous quarters. Most asset categories saw little to no change in pricing, with apartments and warehouses being exceptions, particularly in Paphos and Nicosia. Meanwhile, Limassol, Larnaca, and Famagusta reported no significant increases, and retail properties saw a slight decline.
Rental values, however, continued to rise, with office spaces experiencing the highest increase, followed by residential properties. In contrast, retail spaces and holiday apartments recorded minor declines. Despite these shifts, the overall rental market has seen growth compared to previous years, though property yields have shown only slight variations.
Expert Insights on the Market
Commenting on the latest figures, Simon Rubinsohn, Chief Economist at RICS, noted that the flattening trend in the index aligns with findings from the RICS Commercial Property Monitor, which measures real estate sentiment. While investment inquiries and foreign buyer interest appear to be stabilizing, the overall resilience of the macro-economic environment continues to support the property market despite geopolitical uncertainties.
Year-on-Year Market Performance
A comparison of property prices from Q4 2023 to Q4 2024 reveals notable trends:
The holiday home sector also experienced minor price increases, with holiday apartments rising by 0.43% and holiday houses by 0.25%.
Rental Market Overview
On an annual basis, rental prices continued to climb, with the largest increase observed in office spaces. Holiday houses also saw a rise, while retail and holiday apartments recorded slight declines:
Rental Yields and Market Observations
Rental yields have remained relatively unchanged, with only marginal movements:
Scope of the Index
The RICS Cyprus Property Price Index with KPMG in Cyprus monitors market values and rental trends in Nicosia, Limassol, Larnaca, Paphos, and Paralimni-Famagusta. The data strictly covers government-controlled areas of the Republic of Cyprus and does not extend to the occupied North.
The index tracks values across four key real estate sectors:
Recognizing that property trends vary across districts, the index evaluates specific sub-districts to create a composite value for each urban area.
Methodology and Data Collection
The index is based on notional properties with predefined characteristics, following a methodology developed by the University of Reading. Prices per square meter are calculated using the Gross External Area (GEA), as outlined in the RICS Code of Measurement Practice (8th Edition). The figures are estimated by RICS-accredited property professionals actively engaged in the local real estate market.
Source: www.news.cyprus-property-buyers.com.