Cyprus Property Market Shows Signs of Stabilisation in Q4 2024

The Cyprus property market exhibited stabilising trends in the fourth quarter of 2024, according to the latest RICS Cyprus Property Price Index by KPMG Cyprus. The index, which monitors real estate price trends across all districts, indicated moderate increases in all property categories across the country during the final quarter of last year.

Compared to the third quarter of 2024, warehouses recorded the most significant price increase, while apartments maintained the most consistent growth in annual terms. On a yearly basis, apartments saw the highest increase in value, followed closely by office spaces. Houses and warehouses experienced slight growth, whereas commercial properties recorded only marginal gains.

On a month-to-month basis, apartments showed the highest index rise. At the district level, monthly increases were observed only in Nicosia and Paphos, while other districts remained largely unchanged. The most notable quarterly growth was seen in Paphos apartments, followed by houses in the same area. In Nicosia, warehouses led the gains, while other property types saw only minimal increases.

For holiday properties, both apartments and houses remained stable compared to the previous quarter, continuing the trend from earlier in the year. Over the past 12 months, holiday properties experienced minor price increases, with apartments leading the growth. The only district-wide increase of note occurred in Larnaca, where holiday home prices recorded the most significant four-month rise.

Rental values continued their upward trajectory compared to the previous year, with office spaces experiencing the most substantial percentage increase, followed by holiday homes. However, the report noted that rental values for commercial and holiday rental apartments declined moderately.

Property yields remained largely stable, though returns on holiday homes saw a slight drop, while office yields recorded a marginal rise.

Christophoros Anayiotos, Managing Director and Head of Real Estate and Development at KPMG Cyprus, pointed out that the Q4 2024 index reflects a continued stabilisation of the market, a trend observed in previous quarters. He emphasized that most property categories showed only minor or no changes in value, with the exceptions being warehouses and apartments, which saw some movement in Paphos and Nicosia.

He further stated that “Limassol, Larnaca, and Famagusta recorded no significant increases, while shop prices experienced a slight decline.” Meanwhile, rental values continued to increase, with the most notable rises occurring in office rents, followed by residential properties. In contrast, rental prices for shops and holiday apartments saw a decline.

Simon Rubinsohn, Chief Economist at RICS, explained that the stabilisation observed in the index is consistent with the RICS Commercial Property Monitor, which tracks broader real estate market trends. He pointed out that investment trends and the preferences of foreign buyers appear to be reaching a balance.

“Despite an increasingly uncertain geopolitical landscape, a resilient macroeconomic environment continues to support the property market,” Rubinsohn stated.

By fLEXI tEAM