In the second quarter of 2023, there was a continued increase in property prices and rents in Cyprus, both on a quarterly and yearly basis. The Cypriot real estate and technology company, Ask Wire, published the latest version of its real estate market index, which covers all regions and major property types on the island since 2009.
In the quarterly comparison, property purchase prices increased by the following percentages:
- Apartments: +2.7%
- Houses: +2.0%
- Commercial properties: +1.0%
- Warehouses: 0.0%
- Offices: +2.0%
- Holiday apartments: +3.0%
- Holiday homes: +1.2%
Rental prices also saw an uptick:
- Apartments: +5.6%
- Houses: +6.2%
- Commercial properties: +3.3%
- Warehouses: +0.5%
- Offices: +4.8%
- Holiday apartments: +3.3%
- Holiday homes: +3.2%
On a yearly basis, property purchase and rental prices also continued to rise:
- Apartments: +12.2% (purchase) and +17.9% (rental)
- Houses: +4.6% (purchase) and +13.6% (rental)
- Commercial properties: +1.2% (purchase) and +6.8% (rental)
- Warehouses: -1.5% (purchase) and +1.0% (rental)
- Offices: +4.4% (purchase) and +10.8% (rental)
- Holiday apartments: +8.8% (purchase) and +16.5% (rental)
- Holiday homes: +3.7% (purchase) and +13.9% (rental)
Pavlos Loizou, the CEO of Ask Wire, commented on the situation, noting that the price and rental rate growth has been ongoing since the previous year, especially concerning apartments and houses in Limassol, Paphos, and Larnaca.
However, the increased interest rates and high property prices/rentals have established a stable, yet elevated, market threshold. Commercial real estate may face pressure due to the availability of more attractive alternative investments considering the risk.
Looking ahead to the third quarter of 2023, Ask Wire predicts stability in residential property prices, despite possible declines in demand and transaction volumes. Meanwhile, investor demand for commercial real estate may remain limited."