09.11.2023
Cyprus company Ask Wire on Thursday published a quarterly report on the local real estate market. The report shows a mixed outlook for the property market in Cyprus, despite year-on-year increases in rental costs for various property types.
Pavlos Loizu , CEO of Ask Wire , commented that “the upward trend in property values and rental rates from the third quarter of 2022 is not slowing down, especially due to rising prices, especially in Limassol and Larnaca .”
“However, the combination of political instability in the region, increased inflation and the upward trajectory of prices and rents has established a stable, albeit high, market threshold,” he added.
Annualized Ask Index The Wire shows significant growth in property prices, with apartments leading the way with a 12.2% increase, followed by houses with a 4.6% increase and offices with a 4.4% increase.
Retail trade showed a modest increase of 1.2%, vacation rentals were up 8.8%, and vacation homes and warehouses were down 3.7% and 1.5%, respectively. Overall, quarterly prices for apartments and offices increased by 2.2% and 1.3%, respectively.
Homes, shops and warehouses remained stable, while holiday apartment prices rose 0.8% and holiday homes remained unchanged.
Rental values also showed positive growth compared to the third quarter of 2022, with apartments leading the way with a notable increase of 13.3%, followed by houses with 9.2% and offices with 9.9%.
Prices for retail and country apartments increased by 6.6% and 13.4%, respectively. Vacation homes saw an increase of 11.0 percent, while self-storage properties showed a slight decrease of 0.6 percent.
On a quarterly basis, prices for apartments, shops, offices, holiday apartments and holiday homes continued to rise, with increases ranging from 0.1% to 3.5%.
However, homes and warehouses saw little change, with the latter seeing a decline of 1.1%.
Despite these positive trends, the Ask Index Wire suggests a potential decline in demand for residential property in the fourth quarter of 2023, signaling a mixed outlook for the property market in Cyprus.
“In the fourth quarter of 2023, we expect residential property prices to remain fairly stable, despite potential weaker demand and reduced transaction volume,” Loizou said .
