The RICS Cyprus Property Price Index tracks property and rental prices across all districts and main property types in Cyprus. It monitors the urban centres of Nicosia, Limassol, Larnaca, Paphos and Paralimni-Famagusta. The Index only tracks prices in Republic of Cyprus’ government controlled area and not in the occupied North. In each of these centres, the index monitors the Market Value and Market Rent, as defined in the RICS Red Book, across the four main property sectors – office (CBD), retail (high street), industrial (warehouse) and residential (houses and apartments). Recognising that there are sub-districts within these urban areas which operate and behave in a varying manner, a number of these is monitored in order to derive the composite index for each category per urban area. The information provided in this publication is based on the average price and rent of the sub-districts monitored per urban centre per sector. The Index is based on methodology produced by the University of Reading in the UK.

Real Estate Activity

Market Values

Year Over Year 2022 Q2 – 2021 Q2

A YOY comparison of values saw an islandwide increase in all asset types, with the largest exhibited in Apartments, followed at a distance by Houses. The lowest increase is showed in Retailing with Warehouses slightly ahead.

Quarter Over Quarter 2022 Q2 – 2022 Q1

2022Q2 saw an increase in Larnaca and Famagusta properties, indicating a good overall performance in all asset types. The asset type with the best performance is once again Apartments followed by Houses, the biggest increase identified in Famagusta Apartments (7.43%). By way of contrast, Retail and Warehouses remain out of favour trending largely sideways;, the largest drop identified in Paphos Retail (-0.86%). Limassol recorded zero changes in all asset types, probably indicating a stabilisation of local values with no fluctuations.

Rental Values – Year Over Year 2022 Q2 – 2021 Q2

On a YoY basis, rental values showed an increase across all types of assets, with the biggest increase being recorded in Houses, followed closely by Apartments, whilst the lowest increase in Retail and Warehouses. Meanwhile, yields remain relatively stable, recording only minor increases, the biggest in Holiday Apartments, and the lowest in Warehouses.

Article source: RICS’ Cyprus Property Index with KPMG in Cyprus