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Bistonia Estates LLC: Current state of the Cyprus realty

·2 mins

The RICS Cyprus Property Price Index from KPMG shows that in the fourth quarter of 2023, the cost of buying a property continued to increase. Apartments, offices and houses have risen the most, prices for warehouse space have risen less, and the retail sector has been relatively stagnant.

Prices in the fourth quarter of 2023 increased for all types of real estate - compared to the same period in 2022. Apartments became more expensive by almost 12%, offices by 9.02%, and houses by 8.99%. In Nicosia, the largest growth was recorded for apartments, in Paphos for offices and houses. Warehouse prices have risen only in Larnaca and Limassol. Moreover, retail trade in Larnaca fell, while in Limassol it increased slightly.

The leisure property category is also seeing a further increase, although not universally. Prices for apartments increased by 8.31%, holiday homes - by 9.45%. In Larnaca, holiday homes rose in price most of all, in Famagusta - holiday apartments took the 1st place. In Limassol, the rise in prices for houses is very small, and apartments even fell in price a little.

The rental market is dominated by holiday apartments, followed by apartments from the residential sector and houses. The lowest growth was recorded for the rent of warehouses and retail premises. The largest increase in yield compared to the fourth quarter of 2022 was also recorded in holiday apartments, followed by apartments and houses. Profits from offices grew minimally, while those from warehouses and retail premises decreased.

Interest from Cypriot buyers remains stable, demand from foreign companies and private investors is growing and the market will remain active in the short-to-mid term. “According to our estimates, at some point inflation, rising construction costs and increasing lending rates will affect the market, however, (for now) there is increased demand from foreign companies, mainly for large first-class plots in Limassol, Larnaca and Paphos".

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