The data revealed moderate increases in all property categories nationwide during the final quarter of last year. When compared to the third quarter of 2024, the most significant increase was recorded in warehouses, while apartments continued to show the most consistent growth based on annual changes.

On a yearly basis, apartments saw the most substantial increase, followed by office spaces. Houses and warehouses experienced slight increases, while commercial properties recorded marginal growth. What is more, on a month-on-month basis, the highest index rise was observed in apartments. At the district level, monthly increases were noted only in Nicosia and Paphos, while changes in other districts remained neutral. The most significant quarterly rise was in Paphos apartments, followed by houses in the same area. In Nicosia, warehouses recorded the highest increase, whereas other property types saw marginal gains.

Regarding holiday properties, both apartments and houses remained at the same levels as the previous quarter, continuing the trend from the preceding period. Over the past year, holiday properties showed minor price increases, with apartments leading the way. The only notable district-wide increase was in Larnaca, where holiday home prices recorded the most significant four-month growth.

Rental values continued to rise compared to the previous year, with office spaces experiencing the highest percentage increase, followed by holiday homes. Furthermore, the report showed that commercial and holiday rental apartments saw moderate declines.

Property yields remained mostly stable, with a slight drop in holiday home returns, while office yields rose marginally.

Christophoros Anayiotos, Managing Director and Head of Real Estate and Development at KPMG Cyprus, highlighted that the index for Q4 2024 reflects market stabilisation, a trend persisting from previous quarters. He added that most property categories showed minor or no changes in value, except for warehouses and apartments, which saw movements in Paphos and Nicosia. In addition, he said “that Limassol, Larnaca, and Famagusta recorded no significant increases, while shop prices experienced a slight decline”.

Meanwhile, rental values continued to rise, with notable increases in office rents, followed by residential properties, while shop and holiday apartment rents declined.

RICS Chief Economist Simon Rubinsohn explained that the stabilising trend in the index aligns with the RICS Commercial Property Monitor, which tracks broader real estate market conditions. He noted that investment trends and foreign buyer preferences appear to be balancing out. “Despite an increasingly uncertain geopolitical landscape, a resilient macroeconomic environment continues to support the property market,” he said.

Source: Cyprus Mail