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Bistonia Estates LLC: Trends in Cyprus Realty Explored

·2 mins

According to the latest iteration of the RICS Cyprus Property Price Index, published by KPMG, there was a discernible escalation in property prices during the fourth quarter of 2023. The segments experiencing the most pronounced increases included apartments, offices, and residential houses, whereas the warehouse sector observed a more modest uptick in prices, and the retail sector exhibited negligible change.

In comparison with the corresponding period in 2022, the final quarter of 2023 witnessed appreciable price increments across various property categories. Apartments saw an augmentation of nearly 12%, office spaces escalated by 9.02%, and the cost of houses rose by 8.99%. Notably, Nicosia reported the highest surge in apartment prices, while Paphos observed significant growth in office and house valuations. Price enhancements for warehouse spaces were exclusive to Larnaca and Limassol. In contrast, retail prices in Larnaca experienced a decline, whereas Limassol saw a slight increase.

The leisure property sector also manifested a continuation in the upward trajectory of prices, albeit not uniformly across all locales. The prices for apartments in this category rose by 8.31%, and holiday homes by 9.45%, with the most substantial increase for holiday homes recorded in Larnaca and for holiday apartments in Famagusta. In Limassol, the escalation in house prices was minimal, and apartment prices witnessed a marginal reduction.

Within the rental market, holiday apartments took precedence in terms of demand, followed by residential apartments and houses. The sectors of warehouse and retail premises rentals saw the least growth. Comparatively, the yield increase from the fourth quarter of 2022 was highest for holiday apartments, succeeded by apartments and houses. The profit margin from office rentals showed minimal growth, while yields from warehouses and retail spaces declined.

Stability in interest from domestic buyers is observed, alongside a burgeoning demand from foreign corporations and private investors, suggesting sustained market activity in the near to medium term. The report anticipates that inflationary pressures, escalating construction costs, and rising lending rates will eventually impact the market. However, for the time being, there is a notable demand from foreign entities, especially for premium land parcels in Limassol, Larnaca, and Paphos.

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