Wire-FS, an independent real estate asset management consultancy in Cyprus and Greece, has conducted research on the change in the cost of selling and renting homes on the island over the past 12 years.
The company's analysts have recorded changes in the price of sale and rent every three months in 54 districts of Cyprus over the past 12 years and for all types of real estate: apartments, private houses, retail space, offices, summer apartments and summer houses. The most recent data relates to the first quarter of 2021.
It is worth noting, since the entire year of 2020 and the beginning of 2021 were marked by the fight against the coronavirus pandemic, the dynamics of prices for the sale and rental of real estate in Cyprus turned out to be negative in most categories.
In comparison with the first quarter of 2020, the cost of apartments in Cyprus in the first quarter of 2021 decreased by 0.5%, houses - by 1.5%, retail space - by 5.3%, warehouse - by 4.5 %, office space - by 1%, tourist apartments - by 1.2%, country houses - by 3.2%.
As explained by the CEO of WiRE FS Pavlos Loizou, the relatively large drop in prices for the purchase of warehouse premises is a temporary phenomenon, as there is an increase in the value of such real estate due to the increased demand from delivery companies and other firms developing online commerce.
We also expect summer property prices to rise soon. The faster the pandemic recedes, the more the demand for this kind of property from foreigners who visit the island grows, Loizou said.
According to Loizou, the most difficult thing to return to the previous level will be the prices for commercial real estate.
This segment needs more time to recover as consumers are going through a period of rethinking their buying priorities, lifestyles and ways of shopping.
As for rent, prices for apartments fell by 0.6% in the first quarter of 2021, retail space - by 6.4%, offices - by 3.2%, country houses - by 5.4%. Prices for rental of houses increased slightly - by 2.6%, warehouses - by 0.7% and tourist apartments - by 0.1%.
A similar trend is associated with financial instability. A slight increase in house rental prices is due to the fact that tenants, having lived a year under the conditions of coronavirus restrictions, prefer to rent houses with their own courtyards, rather than apartments. However, it should be noted that it is difficult to foresee all the consequences of the pandemic, since relatively little time has passed, concluded Loizou.
It is noteworthy that according to the data provided to Loizou on the sale of housing in the cities of Cyprus, in a number of cases you will see that prices for residential real estate in the country not only did not decrease, but increased.
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