Real estate sector demand rising

Demand for real estate of all types in Cyprus remains on an upward trend, according to the latest edition of the RICS Cyprus Property Price Index with KPMG.

In the latest edition of the index, KPMG notes the drive behind the upward trend is increased demand for apartments and commercial properties in coastal areas.

Commenting on the findings, Christophoros Anayiotos, the head of KPMG’s real estate sector, said: “The last quarter of 2021 shows increases in apartments (most areas), in retail property (Paphos), in warehousing (Larnaca), and offices (Limassol, Paphos)”.

Anayiotos said holiday homes are facing a slight downturn, but holiday apartments in Paphos are on the rise.

“Overall, momentum appears to be building up to a positive outlook in the real estate sector, and this would likely continue into 2022 as well.”

Simon Rubinsohn, RICS Chief Economist, commented: “Real estate trends generally remain positive in Cyprus, reflecting the economy’s resilience in the face of various variants of Covid.

He argued this is particularly evident in the visible increase of apartment prices which, at a national level, have risen by around 4% over the past year.

“But, significantly, the latest ‘RICS Cyprus Property Index with KPMG’ suggests the rising trend in prices for all types of properties, reflecting firmer demand for property across the board,” said Rubinsohn.

Meanwhile, the improvement of the real estate sector has also been recorded by the Central Bank and the statistical services.

The Central Bank noted the purchase of apartments mainly supports the continuing rise in property prices recorded in Q3 2021.

The house price index recorded a quarterly increase of 0.5% compared to 0.3% in Q2 2021, while on an annual basis, the index increased 1.2% compared to 0.3% in the same quarter of the previous year.

According to data released by Statistical Service, Cyprus’ House Price Index for Q3 2021 increased by 2.4% quarterly and 2.2% annually.

In Q2 2021, prices recorded an annual decrease of 4.9%, while the quarterly increase had risen to 1.2%.