According to the independent company WiRE, rental housing in Cyprus continues to rise in price. In October-December last year, the rent for private houses increased by 1.7%, and for apartments - by 1%. It was profitable to rent retail spaces though during this period: average prices decreased by 1.3% for warehouses and by 1.4% for offices. Rents for leisure real estate have also increased: the increase was 1.5% and 2% for apartments and private houses, respectively.
WiRE CEO Pavlos Loizou notes that investors want to earn more, given that the affordable mortgages, the stable job market and the deferred demand for properties in Cyprus have been the main stimuli of the market in recent years. As for commercial real estate, the price reduction took place due to the transfer of the main activities from stores- online. Another factor is the opening of large shopping centers recently in Larnaca and Nicosia, as well as the restructuring of the banking institutions, which reduce the number of branches and hire fewer staff. The field of activity of the WiRE company is consulting services and real estate asset management.
Talking about the indicators for the whole year, here the growth trends remain in proportions of 2% for apartments, 0.4% for households, 0.9% for holiday properties. Rates for the rent of retail spaces decreased over the year by 5.5%, offices - by 6.7%, warehouses - by 3.2%, boarding houses - by 1.4%.
The increase in rental rates is especially noticeable in Larnaca. Here, rental rates for holiday apartments for October-December increased by 6.3% compared to July-September 2021.
There is news for those who want to buy a property in Cyprus. The cost of apartments in the fourth quarter increased by 1.4%, and private households - by 0.5% compared to the previous period. The price for retail spaces decreased by 0.5%, for warehouses - by 2%, and for offices in business centers - by 0.3%. Buyers of holiday apartments will have to pay 1% more than in July-September. The cost of tourist housing fell slightly: the difference with the previous period was 0.1%.
The increase in real estate prices for the year was 2.2% for apartments and 0.7% for holiday apartments. Private houses and boarding houses fell in price compared to 2020 by 0.5% and 3.7%, respectively. Offices (-2.1%), retail premises (-3.4%), warehouse buildings (-4.5%) sank in price.
There are several reasons why real estate in Cyprus is becoming more expensive: the increase in the cost of building and finishing materials, as well as an increased demand for housing from buyers, including from other countries.