The rental and buy-to-let market continues to grow

The RICS Cyprus Property Price Index in conjunction 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, the fourth quarter of 2022 saw a further increase in the value of residential properties (apartments and houses), which continue to be relatively stable over the quarter. Offices also performed well, while warehouse growth was a bit more modest. In contrast, retail remains relatively stagnant.

Year on year there has been a general increase in the value of all types of real estate on the island:

• Apartments rose 11.94%
• At home, up 8.99%
• Retail premises - by 1.82%
• Warehouses - by 4.72%
• Offices - by 9.02%

Resort houses

Resort condos and houses continue to experience a steady trend in their year-over-year appreciation. Resort apartments increased by 8.31% and resort houses by 9.65%.

Year-over-year, rental values increased significantly, with the largest increase noted in resort apartments, while warehouses and retail showed the smallest increases. Apartments increased by 19.60%, homes by 19.21%, retail space by 0.94%, warehouses by 1.46%, offices by 10.09%, resort apartments by 20.88%, and resort homes by 13.00%.

Rental yield

In the fourth quarter of 2022, rental yields were: apartments 5.25%, homes 2.83%, retail space 5.67%, warehouses 4.34%, offices 5.27%, resort apartments 5.41%, resort homes 2.71%.

On behalf of KPMG Cyprus, Christoforos Anaiotos, Head of the Real Estate Industry Group, commented, "The last quarter of 2022 saw an upward trend in property values across most asset classes, especially in Paphos.

On behalf of RICS, Simon Rubinson, RICS Chief Economist, commented, "The Cypriot economy continued to grow relatively strongly in the second half of 2022, which explains the continued rise in property prices across the country, as shown in the fourth quarter index. Significantly, feedback in the RICS Global Commercial Property Monitor shows that rental and investment demand remains stable for the time being. Some slowdown in economic growth is expected this year, but leading indicators from the Monitor suggest that property prices in Cyprus will continue to rise, particularly for higher quality assets." Full details can be found in the RICS Cyprus Property Price Index in conjunction with KPMG Cyprus for the fourth quarter of 2022.