According to new data from consultancy Ask WiRE, prices for buying and renting property in Cyprus continue to rise at a slower pace, while the housing market continues to recover strongly.
On an annual basis in the first quarter of 2023, prices in Cyprus rose by 6.3% for apartments, 2.1% for houses, 3% for offices, 0.4% for commercial properties, 3.6% for holiday apartments and 1% for holiday homes. On a quarterly basis, prices rose for dwellings (+0.8%), houses (+0.4%), offices (+0.2%) and holiday homes (+0.5%). The value of business premises, warehouses and holiday homes remained stable.
On the other hand, in the first quarter of 2024, rental values rose only for dwellings, by 0.9 %. Rents for all other types of property in Cyprus remained unchanged.
On an annual basis, rents rose by 9.3 % for apartments, 6.4 % for houses, 4.2 % for shops and 8.2 % for offices. Prices for warehouses fell by 0.6 per cent. Prices for holiday apartments rose by 5.9 per cent and for holiday homes by 3.4 per cent.
Ask Wire CEO Pavlos Loizou said that demand for property in Cyprus is being affected by geopolitical turmoil in the region, inflation and rising mortgage rates.
High mortgage rates are likely to persist, reducing local purchasing power and stabilising market prices as demand adjusts. We expect investment property prices to slow in the second quarter of 2024 and beyond," 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.
The property market in Cyprus remains one of the most important and relevant sectors of the island's economy, attracting the attention of both local and foreign investors. Its relevance and importance is based on a number of key factors: legal stability, tourism and leisure, regional diversity. In this regard, Cyprus remains an attractive investment and residential destination," commented Elena Studitskikh, Head of DOM Real Estate office in Nicosia