On Thursday 21st November the consultancy Ask WiRE published a report on the changes in property prices in Cyprus for the third quarter of 2024.
According to the agency, prices rose year-on-year for the sale of apartments (+1.2%) and holiday homes (+0.1%). All other categories recorded decreases. In particular, the price of warehouses fell by 1.8%, offices by 0.8%, shops by 1.4%, houses by 0.8% and holiday homes by 1%.
Compared to the second quarter of 2002, the value of almost all property categories in Cyprus fell: warehouses by 1.8%, offices by 0.5%, houses by 0.8%, shops by 0.8%, holiday homes by 0.4% and apartments by 0.1%. The exception was holiday homes, which rose by 1.4%.
On the other hand, rental prices for dwellings rose by 1.9% in the third quarter of 2024.
Prices for warehouses fell by 2%, for holiday homes by 1%, for houses by 0.8%, for shops by 0.7% and for offices by 0.6%. Only the price of holiday homes remained stable on a yearly basis.
Compared with the previous quarter, prices fell by 1.2% for flats and 1.8% for warehouses, 0.8% for houses, 0.7% for shops and 0.6% for offices. Rents for other property categories remained stable.
Ask Wire CEO Pavlos Loizou noted that demand for property in Cyprus is being affected by geopolitical turmoil in the region, inflation and rising mortgage rates.
The property market in Cyprus is facing challenges. Increased construction costs and supply chain disruptions due to ongoing geopolitical tensions continue to put pressure on prices and demand. High mortgage rates are increasing pressure on credit availability, particularly for middle and lower income segments of the population, thereby limiting aggregate demand. For investors and lenders, the combination of high interest rates, increased construction costs and regional instability underscores the need for caution in the near term. Looking ahead to the fourth quarter and 2025, we expect buyers to become more selective in their investments," said Loizou.
As a reminder, WiRE FS publishes a quarterly index that tracks sales and rental prices in all areas of Cyprus and for all property types.
The index takes into account fluctuations in value since the fourth quarter of 2009. The company's analysts have been recording changes in sales and rental prices every three months for the past 12 years in 54 districts of Cyprus and for all types of property: apartments, private houses, retail space, offices, summer homes and summer cottages.