Apartments continue to drive Cyprus’ real estate market
Apartments remained the driving force behind Cyprus’ real estate market during the third quarter, despite overall signs of stabilisation, according to the RICS Cyprus property price index.
The index, created in collaboration with KPMG, showed that most asset categories experienced minimal change during this time period.
Specifically, apartment prices rose by 0.8 per cent, continuing their steady growth, with demand for shops and warehouses remaining subdued.
The data revealed strong year-over-year gains in apartment prices, leaving behind homes and offices.
Warehouses saw a slight increase, while commercial property values dropped in comparison to the previous year.
Larnaca and Paphos led in apartment price increases, with Paphos also showing growth in residential properties.
Nicosia and Famagusta recorded increases limited to apartments, whereas Limassol saw small decreases across all property categories.
Rental values rose on a year-on-year basis, with apartments leading the increases, followed by residential properties. Warehouse and commercial property rentals remained near the bottom of the scale for growth.
In the holiday homes market, prices for apartments and houses remained stable quarter-over-quarter.
However, year-long trends indicate continued price gains, especially for apartments and holiday houses.
Paphos and Famagusta showed slight increases in holiday home values, while Limassol saw declines, and prices in Larnaca stayed unchanged.
Reflecting on demand, Simon Rubinsohn, RICS Chief Economist, remarked that “despite signs of a more stable trend in property values, according to the Property Value Index, the sentiment recorded through the RICS Global Commercial Property Monitor remains positive”.
He added that “demand for residential property is proving relatively resilient according to the results of the aforementioned survey, with investors showing increased interest”.
Rubinsohn noted that “there is a sense that credit conditions are improving, which should help to support the property market in the near future”.
Christophoros Anayiotos, board member and head of deal advisory at KPMG Cyprus, said that “through Q3 2024, the index is showing increasing signs of stabilisation, recording small changes in most property categories”.
“Apartments are again the preferred category, while shops and warehouses are in low demand,” he added.
“At a district level”, he continued, “Nicosia still appears to be strong in residential apartments, with Paphos and Famagusta also performing strongly”, while noting that “Limassol shows a slight decline in all property categories”.
“Rental values continue to record increases in residential properties, but almost zero increases in shops,” Anayiotos stated.
“Overall, the index shows increases in rental values compared to previous years, while property yields are showing very marginal movements,” he concluded.