Rental and purchase prices continue to rise

The property price index in Cyprus from RICS in collaboration with KPMG in Cyprus shows that the cost of buying and renting property continues to rise in the fourth quarter of 2022.

According to the index, there was further growth in residential real estate prices (apartments and houses) in the fourth quarter of 2022, which remained relatively stable throughout the quarter. Offices also showed good growth, while the growth of warehouses was somewhat more moderate. In contrast, retail remains relatively stable.

Year over year, there has been an increase in the value of all types of real estate across the entire island.

• Apartments rose 11.94%
• Houses have increased by 8.99%
• Retail spaces increased by 1.82%
• The warehouses have increased by 4.72%
• The offices have increased by 9.02%

Resort homes and apartments continue to experience a steady trend of price growth over the year:

• Resort apartments have increased by 8.31%
• Resort homes have increased by 9.65%

The rental prices have significantly increased over the year, with the highest growth recorded in resort apartments, while warehouses and retail showed the least growth.

• Apartment prices have increased by 19.60%
• Houses have increased by 19.21%
• Retail spaces increased by 0.94%
• The warehouses increased by 1.46%
• The offices have increased by 10.09%
• Resort apartments have increased by 20.88%
• Resort homes have increased by 13.00%

The rental yield in the fourth quarter of 2022 was:

• Apartments - 5.25%
• Houses - 2.83%
• Retail spaces - 5.67%
• Stocks - 4.34%
• Offices - 5.27%
• Resort apartments - 5.41%
• Resort homes - 2.71%

On behalf of KPMG in Cyprus, Christophoros Anaiotos, head of the real estate industry group, commented: "In the last quarter of 2022, there was a trend of increasing property values across most asset classes, especially in Paphos. The most successful asset classes are apartments, followed by offices and then houses.

On behalf of RICS, Simon Rubinson, the chief economist of RICS, commented: "The Cypriot economy continued to develop relatively strongly at the end of 2022, which explains the ongoing rise in property prices across the country, as shown by the index for the fourth quarter. It is important to note that feedback from the RICS Global Commercial Property Monitor indicates that demand from both tenants and investors remains stable at this time. There may be a slowdown in economic growth this year, but the forward-looking views from the Monitor suggest that prices for Cypriot real estate will continue to rise, especially for higher-quality assets."

Full details can be found in the Cyprus Property Index by RICS in collaboration with KPMG in Cyprus for the fourth quarter of 2022.