The coronavirus pandemic continues to have a significant impact on the Cyprus property market, according to data from the WiRE FS consultancy released on Monday 26 July.
Due to the unstable situation, the cost of selling all types of housing in the country has been falling for the second quarter in a row. The same trend is observed in rental prices, with a few exceptions.
If you look at the big picture, then prices for the sale of apartments fell by 0.14% in the second quarter of 2021, houses - by 0.36%, commercial real estate - by 0.85%, warehouses - by 0.33%, office space - by 0.62%, holiday apartments - by 0.38% and holiday homes - by 0.95%.
As for the rental cost, in the second quarter of 2021 it increased for apartments (+ 0.05%), decreased for houses (-1.16%), commercial real estate (-2.10%), warehouses (-0, 94%), office space (-0.41%), holiday apartments (-0.59%), holiday homes (-1.50%).
On an annualized basis, prices increased for the sale of apartments (+ 0.3%), houses (+ 1.7%), holiday apartments (+ 0.8%), decreased for the sale of commercial real estate (-5.1%), warehouses premises (-4.0%), office premises (-0.8%), holiday homes (-3.8%).
In turn, the cost of rent for the year increased for houses (+ 0.8%) and holiday apartments (+ 0.4%), fell for apartments (-0.5%), commercial real estate (-8.0%) , office premises (-3.6%) and holiday homes (-5.5%). Warehouse rental prices remained at the same level.
If you look at the cities of the island, then Limassol became the only city where the rise in apartment prices was recorded for the fourth quarter in a row. By the way, apartment prices in Limassol increased by 2.5% in the second quarter of 2021.
Paphos, on the other hand, has become the leader in reducing rental rates for all types of real estate. However, most of all rent in the city fell on holiday homes and commercial real estate - by 5.5% and 8%, respectively.
The slow progress made in improving the country's epidemiological situation adds to the uncertainty. Although we are seeing an increase in the number of transactions in the second quarter of 2021 compared to the same period in 2020, we are still very far from returning to stability, let alone seeing the market grow, '' concluded Pavlos Loizou, Managing Director of WiRE FS.
As you may know, 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 have recorded changes in prices for sale and rent every three months in 54 districts of Cyprus for the past 12 years and for all types of real estate: apartments, private houses, retail space, offices, summer apartments and summer houses.
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