The recession in the Cyprus economy has had a significant impact on commercial, retail and office real estate, especially affecting small and medium-sized enterprises, according to the latest data from the WiRE FS consultancy released on Friday, October 22nd.
The demand for residential property remains high, due to low interest rates on loans and deposits, as well as the lack of alternative investment options. Local residents continue to actively invest in apartments and houses. Nevertheless, despite the fact that the volume of sales contracts is increasing, and prices for certain types of real estate are growing, the Cyprus property market is far from returning to the previous stability.
If you look at the big picture, then in the third quarter of 2021, apartment prices increased by 0.9%, real estate for tourists - by 0.3%. At the same time, the value of houses fell by 1.1%, commercial real estate - by 1.4%, warehouses - by 1.5%, office space - by 1.5%, holiday homes - by 1.7%.
As for the rental prices, in the third quarter of 2021 it increased for apartments (+ 1.1%), for houses (+ 1.3%), holiday apartments (+ 0.3%), holiday homes (+1 %), and fell for commercial real estate (-1.1%), warehouses (-1.4%), office premises (-2.5%),
As for sales, prices increased for apartments (+ 0.7%), houses (+ 0.1%), holiday apartments (+ 0.5%), decreased for commercial real estate (-4.1%), warehouses premises (-3.8%), office premises (-2%), holiday homes (-4%).
During the year, the cost of rent increased for apartments (+ 0.2%) and houses (+ 1.2%), holiday apartments (+ 0.3%), fell for commercial real estate (-6.9%) , office premises (-4%) and warehouses (-2.3%).
It is worth noting that Nicosia was the only city where apartment prices rose for the fourth quarter in a row, on average by 1.1%. At the same time, Paphos became the leader in reducing rental rates for commercial real estate, by an average of 5.3% quarterly.
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 third 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 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 analysts of the company record changes in prices for sale and rent every three months in 54 districts of Cyprus for the last 12 years and for all types of real estate: apartments, private houses, retail space, offices, summer apartments and summer houses.
You can find profitable options for buying real estate in Cyprus on DOM Real Estate Portal. The website also presents a large number of rental properties - from residential to commercial real estate. Choose and contact professionals who will help you make the right choice!