Apartment prices and rents in Cyprus showed steady growth in the third quarter of 2024, despite the overall market decline, according to a report by the analytical company Ask Wire , demand for apartments remains high, which maintains their stable price.
According to the company’s index, apartments have proven to be the most stable segment of the market. The annual growth of apartment prices recorded an increase of 1.2% due to high demand.
On a quarterly basis, at a regional level, there have been general price declines across Cyprus, but Larnaca stands out for its relative stability. This makes it attractive to potential investors.
Apartment rentals rose 1.9% per year, reflecting continued demand. However, other property categories saw year-on-year declines.
In Q3, apartment rents fell by 1.2%, while holiday apartment rents remained stable in most areas, with minor declines in Nicosia and Limassol .
According to Pavlos Loizu , CEO of Ask Wire , the Cyprus property market faces serious challenges:
- High construction costs , driven by ongoing geopolitical tensions and supply chain disruptions, continue to shape property prices and demand patterns.
- High mortgage rates are putting additional pressure on affordability, particularly in the mid- to low-end segments, holding back overall demand. For investors and lenders, the combination of high interest rates, construction costs and regional instability highlights the need for near-term caution .
Greater investment selectivity and stability in certain asset classes is expected in Q4 2024 and 2025. The market will continue to adapt, which could lead to strengthening in certain segments such as apartments and short-term vacation rentals.
