The 54th quarterly publication of the RICS Cyprus Property Index with KPMG in Cyprus records the property price and rental index, tracking property and rental prices across all Cyprus districts and main property types.

Market values year-on-year

A year-on-year comparison of values shows an increase in all asset classes, with the largest evident in Apartments, followed by Offices and Houses. Retail is exhibiting the lowest increase:

• Apartments up 10.97%
• Houses up 8.48%
• Retail premises up 0.95%
• Warehouses up 4.82%
• Offices up 9.63%
• Holiday homes

On a year-on-year comparison, both categories experienced growth with Holiday Houses leading the way:

• Holiday apartments up 8.86%
• Holiday houses up 9.50%

Rental values year-on-year

On a year-on-year comparison, rental values showed an increase, with the largest identified in Holiday Apartments, followed closely by the residential sector properties (Apartments, Houses). Retail and Warehouse asset classes are at the lower end of the increase, with Retail showing the lowest increase:

• Apartments up 29.07%
• Houses up 28.32%
• Retail premises up 4.01%
• Warehouses up 4.52%
• Offices up 14.13%
• Holiday apartments up 31.35%
• Holiday houses up 18.02%

Rental yields

In the first quarter of 2023, rental yields stood at:

• Apartments 5.37%
• Houses 2.86%
• Retail 5.77%
• Warehouse 4.30%
• Office 5.35%
• Holiday Apartments 5.71%
• Holiday Houses 2.71%

Comments from KPMG and RICS

On behalf of KPMG in Cyprus, Christophoros Anayiotos, Head of Real Estate Industry Group, stated:

“During the first quarter of 2023 the increasing trend in property values continued in most asset classes, with notable increases in Larnaca. The best performing asset class is Houses with overall increases in all areas. However, the highest increases were recorded in Larnaca, in Offices and Apartments. Retail displayed minor increases in Limassol, but also the largest drop of the quarter in Larnaca. Rental values have also increased, with holiday apartments and residential sector properties (apartments, houses) exhibiting the largest increases – the same trend was also identified in property yields”.

On behalf of RICS, Simon Rubinsohn, RICS Chief Economist, commented:

“The resilient performance of the economy is reflected not just in this dataset but also in the generally positive feedback to the RICS sentiment survey of real estate in the country. That shows occupied demand in most areas continuing to grow over recent months and that rental expectations largely remain upbeat helping to support the appetite of investors”.

About the price and rental index

The RICS Cyprus Property Price Index with KPMG in Cyprus monitors hypothetical or notional buildings, each having specific characteristics. Details of these hypothetical properties are provided in the University of Reading’s report.

The provided 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.