The RICS Cyprus Property Price Index, developed in collaboration with KPMG in Cyprus, has released its findings for the fourth quarter of 2024. This index provides insights into property and rental price trends by analyzing data across various districts in Cyprus and major property categories.

Speaking on behalf of KPMG in Cyprus, Christophoros Anayiotos, a Board Member and the Head of the Real Estate Industry Group, commented:

“The Index for the final quarter of 2024 suggests a stabilization trend, which has been evident over recent quarters. Most asset types registered minor or no pricing changes, except for fluctuations in Warehouse and Apartment prices in Paphos and Nicosia. Limassol, Larnaca, and Famagusta showed no price increases, while retail spaces experienced a slight price reduction.

“Rental values continue to climb, notably in Office spaces, with residential properties also seeing rises. Conversely, retail and holiday apartment rentals have decreased. The overall trend indicates an upward shift in rental values compared to past years, despite property yields only exhibiting slight variations.”

Simon Rubinsohn, RICS Chief Economist, added:

“The RICS Cyprus Property Price Index with KPMG in Cyprus presents a flattening trend, echoing findings from the RICS Commercial Property Monitor, which examines sentiment within the real estate sector. Notably, metrics tracking investment inquiries and foreign buyer interest seem to be stabilizing.

“Nonetheless, the relatively resilient macroeconomic landscape continues to uphold the property market amidst an increasingly unpredictable geopolitical setting.”

Highlights of the Q4 2024 property and rental indices:

**Cyprus Property Market Values Year-on-Year**

Analyzing data on an annual basis shows a notable increase in Apartment prices, with Offices following suit. Houses and Warehouses saw minor increases while Retail premises experienced a slight downturn.

– Apartments: +3.39%
– Houses: +0.95%
– Retail Premises: -0.21%
– Warehouses: +0.96%
– Offices: +1.74%

**Holiday Home Prices**

Over the past year, prices for both Holiday Apartments and Houses have shown modest gains, with apartments leading.

– Holiday Apartments: +0.43%
– Holiday Houses: +0.25%

**Rental Values Year-on-Year**

Year-over-year rental values have generally grown, most significantly in offices, followed by holiday houses. However, retail and holiday apartment rentals recorded slight decreases.

– 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**

Rental yields have seen minimal changes over the past year, with a slight drop in holiday apartment yields and a minor rise in office yields.

– Apartments: -0.07%
– Houses: +0.04%
– Retail: -0.05%
– Warehouses: +0.02%
– Offices: +0.13%
– Holiday Apartments: -0.11%
– Holiday Houses: +0.04%

**Coverage and Monitored Variables**

The RICS Cyprus Property Price Index with KPMG in Cyprus examines the main urban centers of Nicosia, Limassol, Larnaca, Paphos, and Paralimni-Famagusta, focusing on prices in the government-controlled areas of the Republic of Cyprus. The index monitors both Market Value and Market Rent, as defined in the RICS Red Book, across four primary property sectors: office (central business district), retail (high street), industrial (warehousing), and residential (houses and apartments).

Each urban center’s composite index is derived by assessing sub-districts within the areas, each exhibiting unique characteristics.

RICS Hypothetical Buildings

The Index tracks notional buildings with specified characteristics to ensure consistency. Developed by the University of Reading, the methodology bases price per square meter on the Gross External Area, including living spaces and covered verandas, excluding common areas.

Evaluation of price levels is conducted by RICS-accredited property professionals who are actively engaged in the relevant markets.