Highlights from the RICS Cyprus Property Index Q3 2024 – Market Stabilization with Notable Growth in Apartments

Key Findings from the Q3 2024 Index:

1. Market Stabilization with Minor Changes
   • In the third quarter of 2024, the property market showed signs of stability, with only minor adjustments in most property types.
   • Apartments remain the top-performing asset category, while retail and warehouse properties lag behind.
2. District Performance Highlights
   • Nicosia: Shows continued strength in residential apartment values.
   • Paphos and Famagusta: Also strong in apartment values, indicating a positive trend.
   • Limassol: Observes slight declines across all property categories, hinting at a cooling trend.
3. Rental Market Trends
   • Rising Rents: Rental values are increasing, especially for residential properties.
   • Retail Sector: Minimal rental growth, with retail assets nearly flat in terms of increases.
   • General Comparison: Despite an increase in rental values, yields (returns on rental investment) have shown only minor changes, indicating stable rental return rates.

Insights from Experts

Christophoros Anayiotos, Board Member at KPMG in Cyprus, shared his observations on market stabilization, with apartments as a strong sector and modest performance in retail and warehouses. Simon Rubinsohn, RICS Chief Economist, noted a stable trend in values. He highlighted positive feedback on occupancy and rising investment interest, aided by better credit conditions, which could support real estate growth.

Q3 2024 Property Value Trends (Year-on-Year):

• Apartments: +4.93% (Strong growth)
• Houses: +1.38%
• Retail: -0.72% (Downward trend)
• Warehouses: +0.57%
• Offices: +1.35%

Holiday Property Prices:

• Holiday Apartments: +1.75% (Leading growth in the holiday sector)
• Holiday Houses: +1.00%

Q3 2024 Rental Trends (Year-on-Year):

• Apartments: +10.57% (Highest increase)
• Houses: +9.55%
• Retail Premises: -0.98% (Decrease)
• Warehouses: +1.82%
• Offices: +5.53%
• Holiday Apartments: +7.44%
• Holiday Houses: +6.45%

Rental Yields (Year-on-Year):

• Apartments: -0.15%
• Houses: +0.07%
• Retail: -0.07%
• Warehouses: +0.03%
• Offices: +0.19%
• Holiday Apartments: -0.11%
• Holiday Houses: +0.04%

About the Index:

The RICS Cyprus Property Index tracks prices and rentals for “notional” or hypothetical buildings, each with specific characteristics. The price per square meter is based on Gross External Area, covering living spaces and covered verandas but excluding communal areas. Accredited RICS professionals assess price levels based on real market conditions.

The full report is available on the RICS website, providing comprehensive data and insights into the Cyprus property market trends.