Cyprus’ rental prices across all property types experienced a rise during the second quarter of the year, according to a report released on Thursday by Ask Wire, a Cypriot tech-informed real estate company. The report looked at both property sales and rental cost fluctuations.
“The rising trend in property values and rental rates since the second quarter of 2022 isn’t slowing down, particularly due to the increase in prices of apartments and houses in Limassol, Paphos, and Larnaca,” Ask Wire CEO Pavlos Loizou said.
“However, the blend of increased interest rates and high prices and rents has established a stable, albeit high, market threshold,” he added.
Across Cyprus, on an annual basis, sales prices increased by 12.2 per cent for apartments, 4.6 per cent for houses, and 4.4 per cent for offices.
Additionally, sales prices rose by 1.2 per cent for retail space, 8.8 per cent for holiday apartments, and 3.7 per cent for holiday houses.
However, sales values decreased by 1.5 per cent for warehouses.
On a quarterly basis, sales values increased by 2.7 per cent for apartments, 2 per cent for houses, 1 per cent for retail space, and 2 per cent for offices, and remained stable for warehouses.
As for holiday apartments and holiday houses, sales values increased by 3 per cent and 1.2 per cent respectively.
Moreover, in terms of rental values, when compared to the second quarter of 2022, there has been an increase of 17.9 per cent for apartments, 13.6 per cent for houses, and 6.8 per cent for retail space.
In addition, there was an increase of 1 per cent for warehouses, 10.8 per cent for offices, 16.5 per cent for holiday apartments, and 13.9 per cent for holiday houses.
On a quarterly basis, rental values increased by 5.6 per cent for apartments, 6.2 per cent for houses, 3.3 per cent for retail, 4.8 per cent for offices, and 0.5 per cent for warehouses.
As for holiday apartments and holiday houses, rental values soe by 3.3 per cent and 3.2 per cent respectively.
“We expect commercial property pricing to feel increased pressure, as alternative investments provide attractive risk-adjusted returns,” Loizou said.
“Looking forward to the third quarter of 2023, we foresee residential property prices remaining fairly steady, despite potentially slower demand and reduced transaction volume,” the Ask Wire CEO continued.
“Investor demand for commercial properties might remain somewhat restrained,” Loizou concluded.
The Ask Wire Index covers all districts and major property types, providing a comprehensive overview of the real estate market in Cyprus. The data spans from the fourth quarter of 2009, offering valuable insights into long-term trends.
Despite the robust rental market during the second quarter of 2023, experts anticipate a potential slowdown in residential property demand in the coming quarter.
The overall property market has remained steady, but factors such as economic conditions, supply, and demand dynamics could influence the residential sector’s future growth.
Finally, the rising rental values across different property types highlight the continued attractiveness of Cyprus as a destination for both local and overseas investors.