The RICS Cyprus Property Price Index with KPMG in Cyprus reveals that property purchase and rental values continued to rise in the fourth quarter of 2022.
The RICS Cyprus Property Price Index with KPMG in Cyprus reveals that property purchase and rental values continued to rise in the fourth quarter of 2022.
According to the Index, the fourth quarter of 2022 saw a further increase in the price of residential properties (apartments and houses), both of which continue to be relatively strong performers over the quarter. Offices also recorded a solid gain while the increase in warehouses was a little more modest. In contrast, retail remains relatively stagnant.
Market values year-on-year
An island-wide increase was observed in the value of all property types:
- Apartments up 11.94%
- Houses up 8.99%
- Retail premises up 1.82%
- Warehouses up 4.72%
- Offices up 9.02%
Holiday homes
Holiday apartments and houses continue to experience a firm upward trend in their values over the year.
- Holiday apartments up 8.31%
- Holiday houses up 9.65%
Rental values year-on-year
Rental values made significant gains over the year, with the largest increase recorded in holiday apartments, with warehouse and retail bringing up the rear.
- Apartments up 19.60%
- Houses up 19.21%
- Retail premises up 0.94%
- Warehouses up 1.46%
- Offices up 10.09%
- Holiday apartments up 20.88%
- Holiday houses up 13.00%
Rental yields
In the fourth quarter of 2022, rental yields stood at:
- Apartments 5.25%
- Houses 2.83%
- Retail premises 5.67%
- Warehouses 4.34%
- Offices 5.27%
- Holiday apartments 5.41%
- Holiday houses 2.71%
On behalf of KPMG in Cyprus, Christophoros Anayiotos, Head of Real Estate Industry Group, commented:
“During the last quarter of 2022 the increasing trend in property values continued in most asset classes, with notable increases in Paphos. The best performing asset classes are again Apartments, followed by Offices and closely by Houses. Retail and Warehouses displayed minor adjustments, apart from a sharp decline in Larnaca Retail. Rental values have also increased, with holiday apartments and residential sector properties (apartments, houses) exhibiting the largest increases – the same trend was also identified in property yields”.
On behalf of RICS, Simon Rubinsohn, RICS Chief Economist, commented:
“The Cypriot economy continued to perform relatively strongly through the back-end of 2022 which helps to explain the continuing increase in real estate prices across the country as demonstrated by the Q4 index. Significantly, feedback to the RICS Global Commercial Property Monitor shows both occupier and investor demand remain firm for now. Some deceleration in the pace of economic growth is likely this year but forward-looking indicators from the Monitor suggest that Cypriot real estate prices will continue to move higher particularly for better quality assets.
source CPN