Recent data from KPMG Cyprus, as measured by the RICS Cyprus Property Price Index, highlights a trend toward stabilization across the nation’s real estate market during the final quarter of 2024. This comprehensive index, which monitors price changes in every district of Cyprus, indicates moderate price increases across most property types throughout the quarter.
When comparing Q4 with the third quarter of 2024, warehouses experienced the most pronounced price increase. However, residential apartments have shown the most consistent growth over the past year, outperforming other property segments. Year-over-year data reveals that apartments led the way in price appreciation, followed by office spaces. In contrast, houses and warehouses recorded only slight increases, while commercial properties saw minimal growth. On a month-to-month basis, apartments also registered the highest index rise, reinforcing their role as a key driver in the market.
At the district level, notable monthly increases were limited to Nicosia and Paphos, with other regions remaining relatively stable. In Paphos, the quarterly figures were particularly strong for apartments and houses, whereas in Nicosia, warehouses stood out with the most significant price uptick. These variations suggest that while the overall market is stabilizing, specific local dynamics continue to influence property prices.
The segment of holiday properties maintained its previous levels during the quarter, with both apartments and houses showing minimal changes. Over the past year, holiday properties have experienced only modest price growth, with apartments leading slightly. Larnaca, however, emerged as an exception, recording the most substantial four-month increase in holiday home prices.
On the rental side, values have continued to rise compared to the previous year. Office spaces saw the highest percentage increase in rents, followed by holiday homes, even though there were moderate declines observed in the rental markets for commercial properties and holiday apartments. Despite these fluctuations, overall property yields have remained stable—with only a slight drop in returns for holiday homes and a marginal rise in office yields.
Christophoros Anayiotos, Managing Director and Head of Real Estate and Development at KPMG Cyprus, noted that the Q4 figures reflect a continued trend of market stabilization, consistent with previous quarters. He emphasized that most property types have experienced minimal changes, except for noticeable movements in warehouses and apartments in areas like Paphos and Nicosia. Anayiotos also pointed out that regions such as Limassol, Larnaca, and Famagusta did not see significant price increases, with shop prices even declining slightly.
RICS Chief Economist Simon Rubinsohn corroborated these findings, explaining that the steady trend in the index aligns with broader real estate conditions monitored by the RICS Commercial Property Monitor. He attributed the balance in the market to stable investment trends and a sustained interest from foreign buyers. Despite an uncertain geopolitical climate, a resilient macroeconomic environment appears to be supporting Cyprus’s property market.
The evidence from Q4 2024 paints a picture of a market gradually consolidating its footing. With residential and office properties leading the charge in price growth and rentals showing robust increases, Cyprus continues to present a promising landscape for both investors and homebuyers. While certain regional variations persist, the overall stabilization signals cautious optimism for the future of the island’s real estate market.
Text based on materials from cyprus-mail.com, photo pixabay.com
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