RICS and KPMG have released their latest Cyprus Property Price Index, which shows that property prices and rents continued to rise in the fourth quarter of 2023.
Key findings include:
- Paphos was the leader in overall property price growth.
- Apartments saw the highest price increases, followed by houses in Paphos, Larnaca, and Limassol.
- The most significant rental increases were recorded for holiday apartments and residential properties.
- The real estate sector remains strong, despite rising mortgage costs.
- Continued growth in tourism is expected to support positive momentum in the holiday property market.
Annual price changes:
- Apartments: +9.53%
- Houses: +6.47%
- Holiday apartments: +7.77%
- Holiday homes: +6.63%
Annual rental yields:
- Apartments: 5.48%
- Houses: 2.99%
- Holiday apartments: 5.82%
- Holiday homes: 2.74%
These figures suggest that the outlook for the Cypriot property market is positive, particularly in the residential sector, making it an attractive proposition for investors.
Other key points from the report:
- The upward trend in the Cyprus Property Index continued in Q4 2023, with Paphos leading the way in terms of overall growth.
- The best-performing asset class was apartments, followed by houses.
- The highest increases were recorded in Paphos, Larnaca, and Limassol.
- Rental values also increased, with holiday apartments and residential properties (apartments and houses) exhibiting the largest increases.
- The positive trend in holiday homes and apartments is likely to be sustained by solid growth in tourism.
Overall, the report paints a picture of a healthy and growing property market in Cyprus. This is good news for investors, both domestic and foreign, who are looking to take advantage of the strong fundamentals of the Cypriot economy.
