The RICS Cyprus Property Price Index with KPMG in Cyprus, which records the property price and rental index by tracking property and rental prices across all Cyprus districts and main property types, has been issued for the fourth quarter of 2024.
On behalf of KPMG in Cyprus, Christophoros Anayiotos, Board Member and Head of the Real Estate Industry Group, stated:
“The Index for the fourth quarter of 2024 shows stabilization, a trend continuing from past quarters. Most asset categories show a minor or no changes in pricing, apart from Warehouses and Apartments, with changes in Paphos and Nicosia. Limassol, Larnaca and Famagusta recorded no increases, while retail recorded a minor decrease in pricing.
“Rental values continue to rise, with a significant increase in Offices, followed by increases in residential assets, while at the same time, retail and holiday apartments have shown decreases. Overall, the Index reflects increases in rental values compared to previous years, although property yields have shown very marginal movements”.
On behalf of RICS, Simon Rubinsohn, RICS Chief Economist, commented:
“The flatter trend emerging in the RICS Cyprus Property Price Index with KPMG in Cyprus is broadly consistent with the feedback garnered through the RICS Commercial Property Monitor which tracks sentiment in the real estate sector. Significantly, the metrics in the latter charting both investment inquiries and foreign buyer appetite now appear to be levelling off.
“That said, a largely resilient macro environment is continuing to provide a measure of support for the property market in the face of an increasingly uncertain geopolitical climate.”
Extracts from the Q4 2024 property prices and rental index
Cyprus property market values year-on-year
Looking at the data on a year-on-year (YoY) comparison, the latest numbers show a strong increase in Apartments, with Offices some way behind. Houses and Warehouses recorded a minor increases, whilst Retail once again stands out showing a minor decline.
- Apartments +3.39%
- Houses +0.95%
- Retail premises -0.21%
- Warehouses +0.96%
- Offices +1.74%
Holiday home prices
Over the past year both Holiday Apartments and Holiday Houses are showing minor price increases, with apartments leading the way.
- Holiday apartments +0.43%
- Holiday houses +0.25%
Rental values year-on-year
Rental values on balance continue to increase compared with a year earlier with the largest percentage rise found in offices, followed at a distance by holiday houses. retail and holiday apartments recorded modest declines.
- Apartments +2.01%
- Houses +2.29%
- Retail premises -1.08%
- Warehouses +1.37%
- Offices +4.05%
- Holiday apartments -1.39%
- Holiday houses +2.30%
Rental yields
Yields have recorded very marginal movements since last year with holiday apartments falling and offices rising, albeit marginally for both.
- Apartments -0.07%
- Houses +0.04%
- Retail -0.05%
- Warehouse +0.02%
- Office +0.13%
- Holiday Apartments -0.11%
- Holiday Houses +0.04%
Coverage and Variables Monitored
The RICS Cyprus Property Price Index with KPMG in Cyprus monitors the urban centres of Nicosia, Limassol, Larnaca, Paphos and Paralimni-Famagusta. The Index only tracks prices in Republic of Cyprus’ government-controlled area and not in the occupied North.
In each of these centres, the index monitors the Market Value and Market Rent, as defined in the RICS Red Book, across the four main property sectors – office (CBD), retail (high street), industrial (warehouse) and residential (houses and apartments).
Recognising that there are sub-districts within these urban areas which operate and behave in a varying manner, a number of these is monitored in order to derive the composite index for each category per urban area.
The information provided in this publication is based on the average price and rent of the sub-districts monitored per urban centre per sector.
RICS notional buildings
The RICS Cyprus Property Price Index with KPMG in Cyprus monitors hypothetical or notional buildings, each having specific characteristics. The methodology underpinning Index was developed by the University of Reading.
The price per sqm is based on the Gross External Area of the property (as defined in the RICS’ Code of Measurement Practice 8th Edition), which includes the living area and covered verandas but excludes common areas.
The estimation of price levels is carried out by accredited RICS property professionals who are active in the relevant markets.
SOURCE: CYPRUS PROPERTY NEWS