**"The cost of real estate and the rental index Q12023Housing prices and rent index in the first quarter of2023."

With the 54th quarterly edition of the RICS Cyprus Property Index, in conjunction with KPMG Cyprus, the RICS Cyprus Property Price and Rental Index is recorded, tracking property prices and rents in all areas of Cyprus and the main property types.

Comparison of market prices by year

When comparing prices year-on-year, there is growth across all asset classes, with the largest increase in the apartment category, followed by offices and homes. The smallest increase is seen in retail:

• Apartments - up 10.97%
• At home, an increase of 8.48%
• Retail premises - up 0.95%
• Warehouses - growth by 4.82%
• Offices - growth by 9.63%

Vacation homes

When comparing year-over-year, both categories show growth, with vacation homes leading the way:

• Vacation apartments - up 8.86%
• Vacation homes - up 9.50%

Rental rates by year

When comparing by year, rental rates show an increase, with the highest growth noted in vacation apartments and in the residential real estate sector (apartments, houses). Asset categories such as retail and warehouses have the lowest growth, with retail showing the least increase.

• Apartments - an increase of 29.07%
• At home - an increase of 28.32%
• Retail spaces - an increase of 4.01%
• Stocks - up by 4.52%
• Offices - growth of 14.13%
• Vacation apartments - a growth of 31.35%
• Vacation homes - an increase of 18.02%

Rental income

In the first quarter of 2023, rental income amounted to:

• Apartments - 5.37%
• Houses - 2.86%
• Retail trade - 5.77%
• Warehouses - 4.30%
• Offices - 5.35%
• Vacation apartments - 5.71%
• Houses for recreation - 2.71%

Comments from KPMG and RICS

On behalf of KPMG in Cyprus, Christophoros Anayiotos, head of the real estate group, stated: "In the first quarter of 2023, the trend of rising property values continued across most asset classes, with a notable increase in Larnaca. The best performance was seen in houses, with a global increase across all areas. However, the highest growth was recorded in Larnaca for offices and apartments. Retail showed a slight increase in Limassol, but also the largest decline for the quarter in Larnaca.

On behalf of RICS, Chief Economist Simon Rubinsohn commented: "The sustainable development of the economy is reflected not only in this set of data but also in the overall positive feedback on RICS sentiment in the real estate sector in the country. This shows that the demand for housing in most areas continues to grow in recent months, and rental expectations remain generally optimistic, which helps maintain investor interest."

About the price and rental index

The RICS Property Index in Cyprus, in collaboration with KPMG in Cyprus, monitors hypothetical or conditional buildings, each of which has specific characteristics. Details about these conditional properties are outlined in the report from the University of Reading. The provided price per square meter is based on the total external area of the property (as defined in the RICS Measurement Practice, 8th edition), which includes living space and covered verandas but excludes common areas. The price level assessment is conducted by accredited RICS property professionals who are actively working in the relevant markets. Detailed information can be found in the RICS Property Index in Cyprus in collaboration with KPMG in Cyprus for the first quarter of 2023.