Cyprus’ property market experienced price growth across most categories in the first quarter of 2024, according to the latest RICS Cyprus Property Price Index with KPMG in Cyprus.
Apartments led the surge, with both sales and rental prices rising by around 10% year-on-year.
Compared to the same period in 2023, apartment sales prices increased by 9.30%, while houses saw a more modest increase of 5.49%.
Commercial properties witnessed minimal growth of 0.08%, with warehouses (+3.75%) and offices (+2.54%) showing slight gains.
Looking at rentals, the overall market rose by 10.57% year-on-year. Apartments again led the way, mirroring the sales trend with a 10.57% increase. Houses followed closely at 9.55%, while commercial properties saw a small rise of 0.98%. Warehouses, offices, holiday apartments, and holiday homes also registered rental increases.
Residential properties, particularly apartments and houses, performed the strongest when compared to the previous quarter.
Nicosia and Paphos benefitted most from the rise in apartment sale prices, while house prices grew primarily in Nicosia. Warehouses performed well in Nicosia and Larnaca, whereas commercial properties showed minimal movement across all regions.
The report by KPMG Cyprus and RICS suggests a stabilising market for most property categories, with the exception of apartment values which continue their upward trend, particularly in Nicosia and Paphos. House prices rose in Nicosia but remained flat in other areas.
Warehouses and offices saw marginal increases, with the strongest performances in Nicosia for warehouses and Larnaca for offices.
There was no growth in shop values, with a slight decline in Larnaca, continuing the trend from the fourth quarter of 2023. Warehouses in Limassol and Paphos also witnessed a decrease, while Paphos shop values also dipped.
Rental prices increased across the board, with residential properties leading the way.
RICS Chief Economist Simon Rubinsohn commented that Cyprus’ economy benefits from steady domestic demand, although concerns regarding the current account deficit persist.
“The Cypriot economy continues to be supported by a steady trend in domestic demand, even if there are still concerns about the scale of the current account deficit. This generally positive picture continues to support the real estate market, as noted in both the present report and the improved sentiment recorded in the recently published RICS Global Commercial Property Monitor for the first quarter of 2024,” he said.
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