How Has the Cyprus Real Estate Market Changed in Q3 2024?

Cyprus continues to attract property investors, remaining a popular destination for residential properties—both apartments and houses—as well as commercial real estate. The Royal Institution of Chartered Surveyors (RICS), together with KPMG, has published a new report on the state of the Cyprus property market in the third quarter of 2024. The report highlights key changes in property prices and rental rates across various property categories.

Key Changes in Cyprus Real Estate Market, Q3

Increase in Residential and Commercial Property Prices

• Apartments: According to the report, apartment prices in Cyprus are continuing their steady rise, increasing by 0.8% compared to the previous quarter. Annually, this growth reached 4.93%, making apartments particularly attractive to investors, as demand for this type of property remains consistently high.
• Houses: House prices also rose, with a 1.38% increase, indicating stable demand for private residential homes.
• Office Spaces: Office property prices grew by 1.35%, signaling a heightened interest in commercial real estate amid increasing business activity on the island.
• Warehouses and Retail Spaces: Warehouse prices showed a modest increase (+0.57%), while retail spaces experienced a slight decline of 0.72%.

Regional Market Characteristics in Cyprus

Each region of Cyprus exhibited distinct price trends:

• Larnaca and Paphos: These regions saw the highest growth in apartment and office prices, with house prices also rising in Paphos.
• Nicosia and Famagusta: In these areas, only apartment prices rose, with no changes in other property categories.
• Limassol: This key region of the island showed a slight decline in prices across all property categories, potentially due to local market specifics and economic conditions.

Annual Growth in Rental Rates

In the third quarter of 2024, the rental market in Cyprus showed steady growth, indicating increased demand across various segments—from residential apartments to commercial and tourist properties:

• Apartments: Annual rental rates for apartments increased by 10.57%, highlighting strong demand for residential rentals.
• Houses: Rental rates for houses rose by 9.55%, making them attractive for both long-term and short-term leases.
• Holiday Apartments: Holiday apartment rentals grew by 7.44%, indicating heightened demand from tourists and vacationers.
• Holiday Houses: Rental rates for holiday houses increased by 6.45%, further reflecting Cyprus’s popularity as a tourist destination.
• Offices: Office rental rates grew by 5.53%, showing rising interest from companies operating or opening branches in Cyprus.

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Cyprus – An Attractive Market for Real Estate Investors

The real estate market in Cyprus continues to demonstrate stability and appeal for investors. Steady increases in apartment and residential house prices, along with significant rental growth across various segments, confirm strong demand for housing and commercial properties. As in previous years, Cyprus remains a reliable investment platform, drawing both private buyers and business owners looking to expand on the island.

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