According to the latest data from the consulting company Ask WiRE, published on Thursday, February 8, the prices for buying property in Cyprus have stabilized. At the same time, rental rates in the country continue to grow.
Thus, compared to the third quarter in the fourth quarter of 2023, apartment prices in Cyprus increased by 0.5%. The cost of houses and warehouses remained at a stable level. Meanwhile, commercial property prices fell by 0.6%, offices by 0.5%, holiday apartments by 0.8% and vacation homes by 0.2%.
On a year-over-year basis, prices increased for sales of apartments (+8.8%), houses (+3%), offices (+4.2%), vacation apartments (+4.9%), vacation homes (+4.8), and commercial real estate (+0.8%). The value of warehouses in the island nation remained at a stable level.
In turn, rental values rose only for apartments by 0.7% in the fourth quarter of 2023. Vacation apartments fell in value by 1%. Rental rates for all other types of real estate in Cyprus remained unchanged.
On an annualized basis, rents increased by 11.1% for apartments, 8% for houses, 4.9% for stores and 9% for offices. Warehouse space fell in price by 0.6%. Prices for vacation apartments rose 8.4% and vacation homes rose 4.8%.
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.
Looking ahead to the first quarter of 2024, we expect to see more offers on the market, thanks to new residential projects. At the same time, demand will decrease. Accordingly, housing prices will adjust," Loizou emphasized.
Recall that WiRE FS publishes a quarterly index, which records the sale and rental prices in all areas of Cyprus and for all types of real estate.
The index takes into account fluctuations in value since the fourth quarter of 2009. The company's analysts record the changes in sale and rental prices every three months in 54 districts of Cyprus for the last 12 years and all types of properties: apartments, private houses, retail space, offices, summer apartments, and summer houses.