Cyprus real estate market analysis 2015 - 2024

Analyzing the Cypriot real estate market from 2015 to 2024 reveals notable trends in property prices and rental yields. Here's a comprehensive overview:

1. House Price Index (HPI) Trends:

The House Price Index (HPI) measures the price changes of residential properties over time.

2015: The HPI was set at a baseline of 100.

2016-2019: The index experienced modest growth, reaching approximately 102.15 by 2019, indicating a cumulative increase of 2.15% over four years.

2020: A slight decline was observed, with the HPI decreasing by 0.77% compared to the previous year.

2021: The market began to recover, with a nominal increase of 2.62% in property prices.

2022: Significant growth occurred, with the HPI rising by 6.60% year-on-year.

2023: The upward trend continued, with an 8.34% increase in property prices.

2024: As of Q3 2024, the HPI reached 113.62, marking a 2.68% rise from the previous year. citeturn0search8

2. Rental Yields:

Rental yield represents the annual rental income as a percentage of the property's market value.

2015-2019: Data indicates stable rental yields, averaging around 4% to 5% for apartments and slightly lower for houses.

2020: Despite global economic challenges, rental yields remained resilient, with minimal fluctuations.

2021: A slight uptick in yields was observed, correlating with the gradual increase in property prices.

2022: Rental yields for apartments averaged 5.38%, while houses yielded around 2.86%.

2023: A marginal increase brought apartment yields to 5.44% and houses to 2.97%.

2024: As of Q1 2024, apartment yields stood at 5.44%, with houses at 2.97%, indicating market stabilization. citeturn0search1

3. Regional Rental Insights (2024):

Rental rates vary across different districts:

Limassol: Highest rental rates, with apartments averaging €22 per m² and houses €16 per m².

Other Districts: Rental prices range between €11 and €22 per m² for apartments. citeturn0search2

4. Market Growth Overview:

From 2015 to 2024, the Cypriot real estate market exhibited:

Cumulative HPI Growth: Approximately 13.62% over the nine-year period.

Average Annual HPI Growth Rate: Around 1.5%.

Rental Yield Stability: Consistent yields, with apartments averaging between 4% to 5.5% and houses between 2.5% to 3%.

These trends underscore the resilience and attractiveness of Cyprus's real estate market for investors seeking steady growth and reliable rental income.

Note: The above analysis is based on data from the Central Bank of Cyprus, RICS, and Eurostat.