Paphos rental prices take off as Cyprus properties continue upward trend

Cypriot fintech Ask WiRE on Monday released its latest property market report, concerning the third quarter of 2022, during which time real estate prices continued to rise, with the Paphos district standing out due to its sharp rise in rental prices.

“The influx in population due to in-migration over the first three quarters of 2022 and pent-up demand over the past couple of years continues to drive the residential market,” Ask WiRE CEO Pavlos Loizou said.

“However, we are seeing signs of a pull-back in investor appetite due to the higher cost of credit and availability of other investment opportunities in bonds, stocks, etc,” he added.

According to the report, property sale values increased by 3.9 per cent for apartments across Cyprus on a quarterly basis.

They also increased by 1.1 per cent for houses, and 0.6 per cent for offices, while they decreased by 0.3 per cent for retail space and 1.5 per cent for warehouses.

In terms of holiday apartments and holiday houses, sale values increased by 1.9 per cent and 0.6 per cent respectively.

Moreover, on an annual basis, prices increased by 9.4 per cent for apartments, 1.4 per cent for houses, 3.9 per cent for holiday apartments and 0.4 per cent for holiday houses.

Conversely, property prices decreased by 1.9 per cent for retail space, 5.6 per cent for warehouses, and 0.4 per cent for offices.

“Limassol stands out from the districts, as sale values of apartments continued to rise for the fourth quarter in a row,” the report said, noting that these increased by 4.8 per cent during the third quarter of the current year.

On a quarterly basis, rental values increased by 6.0 per cent for apartments, 4.2 per cent for houses, 0.9 per cent for retail, 0.5 per cent for warehouses, and 4.1 per cent for offices.

Regarding holiday apartments and holiday houses, rental values increased by 6.4 per cent and 3 per cent respectively.

What is more, on an annual basis, rental values increased by 16.2 per cent for apartments, 12.2 per cent for houses, 3.9 per cent for offices, 14.5 per cent for holiday apartments and 10.2 per cent for holiday houses.

However, rental values decreased by 1.3 per cent for retail space, and 1.6 per cent for warehouses.

“Paphos stands out from the districts, as rental values of apartments and holiday apartments had a significant increase for another quarter,” the report said, with rental prices across the two categories increasing by 12.5 per cent and 11.1 per cent respectively during the third quarter.

“Inflation and the higher costs of credit continue to affect local households, whilst migrants, typically earning above-average salaries, are driving the top end of the market,” Loizou explained.

“We are increasingly seeing a two-tier market evolving, each having its own characteristics and drivers,” he added.

“We are still away from seeing a return to stability, as the landscape around the global economy and geopolitics keeps shifting,” the Ask WiRE CEO concluded.