The cost of apartments and holiday homes in Cyprus has risen to a record high.
This was revealed by Kyriakos Kyiliaris, marketing director of Danos International Property Consultants and Valuers.
According to him, the prices of such properties are now at an all-time high. Incidentally, compared to the period before 2016, when the Cypriot property sector was booming, the increase in rents in Cyprus is as high as 80% for holiday apartments and 60% for holiday houses. As for the sale value of such properties, the increase ranges from 40% for apartments to 20% for houses. In other words, rents (per month) and sales prices for flats and holiday homes increased significantly from 2016 to 2019, and then fell sharply in 2020 with the arrival of the pandemic in Cyprus. In 2022, however, prices rose again to reach today's record highs.
Interestingly, Larnaca is leading the way in terms of rising holiday home rental costs. In this Cypriot city, rents have increased by 74 per cent since 2016 and 41 per cent since 2019.
Currently, rents for apartments and holiday homes range from €25 to €30 per k1m2, compared to €18 to €22 per k1m2 in 2019. It should be noted that the final cost depends on characteristics such as the age, location and views offered by each property.
Larnoka is followed by Paphos in terms of rental growth rates for apartments and holiday homes. Here, rents have increased by an average of 24.5 per cent compared to 2019, with prices ranging from €25 to €30 per 1m2. Surprisingly, Limassol is only in third place for the growth rate of holiday homes. In fact, prices in Limassol have increased by 16.2 per cent compared to 2019. Rents now range from €23 to €70 per 1m2, compared to €20-60 per 1m2 in 2019.
However, when it comes to buying a holiday property, the trend is slightly different.
The most expensive properties in this category are in Limassol, where the cost per square metre exceeds €4,000 per 1m2. This represents an increase of 20% compared to 2019, indicating a greater interest in buying rather than renting. The average increase since 2016 is estimated at 30%. Meanwhile, in the vacant areas of Famagusta, sale prices have also increased by around 20% since 2019, averaging between 2.76 thousand euros and 3 thousand euros per 1 m2.
Next is Larnaca. Here, sale prices for holiday homes and apartments have increased by 7% since 2019, with prices ranging from around 2.3 thousand euros to 2.9 thousand euros per 1 m2. On the other hand, the sale prices of apartments and holiday homes in Paphos have not increased as much as in other towns on the island, leaving room for investment opportunities due to the rate of rental growth in the region. Incidentally, the cost of buying a country house in Paphos has increased by 15% compared to 2019, with prices averaging around €3,000 per 1m2.