Cyprus apartment rental values rise by 11.1 per cent year-on-year in Q4 2023

Cypriot real estate analytics firm Ask Wire on Thursday released a report outlining the performance of the local property market for the fourth quarter of 2023, including property sales and rental values.

The company, which monitors transactions, asking prices, and construction activity across Cyprus, noted that rental values rose slightly during this period, while there was a slight decrease in sales values for houses.

In addition, the company explained that while the market is currently stable, demand for residential properties is expected to weaken further during the first quarter of 2024.

“Real estate demand is influenced by political unrest in the region, inflation eating away households’ disposable income, and elevated mortgage rates,” Pavlos Loizou, CEO of Ask Wire, said.

“As we advance into the first quarter of 2024, with considerable supply coming through and weakening demand, it is expected that prices will adjust accordingly,” he added.

“Furthermore, commercial property values will likely continue to face significant challenges, given the allure of alternative investment opportunities that offer appealing risk-adjusted returns,” Loizou concluded.

Delving into the report, across Cyprus, on an annual basis, prices increased by 8.8 per cent for apartments, 3 per cent for houses, 4.2 per cent for offices, 0.8 per cent for retail, 4.9 per cent for holiday apartments, 4.8 per cent for holiday houses, and stable for warehouses.

Overall, on a quarterly basis, values increased by 0.5 per cent for apartments while the sale value remained stable for warehouses. The firm added that house values decreased by 0.3 per cent, commercial space by 0.6 per cent, office space by 0.5 per cent, holiday apartments decreased by 0.8 per cent, and holiday houses fell by 0.2 per cent.

In terms of rental values, compared to Q4 2022 there has been an increase of 11.1 per cent for apartments, 8.0 per cent for houses, 4.9 per cent for retail, 9 per cent for offices, 8.4 per cent for holiday apartments and 4.8 per cent for holiday houses. What is more, the report noted that there was a decrease of 0.6 per cent for warehouses.

On a quarterly basis rental values increased by 0.7 per cent for apartments and remained stable for the rest of the properties. Finally, in terms of holiday apartments, there was a decrease of 1 per cent, while holiday house rental values stayed the same.