The Cyprus residential property market has seen price stabilisation for the first time in several years, despite continued increases in property values and rental rates across the country. The latest quarterly data shows that the rise in apartment and house prices has stalled, with some even seeing a decline. For the first time since 2020, there has been no significant increase in prices compared to the previous quarter, with some areas seeing a decline.
For example, in Limassol, traditionally the most expensive city on the island, apartment prices fell by 0.5% in the second quarter of 2024 compared to the first. This sharp change from the 2% growth at the beginning of the year and the 8% rise at the end of 2023 indicates a slowdown in the property market. Overall, apartment prices have stabilised across the country over the past two quarters. Since mid-2021, when the recovery from the pandemic began, they have been growing at rates of between 1% and 5% per quarter, but the pace of increase has slowed significantly since the end of last year.
Over the last three quarters, prices have increased by less than 1%, and in Q2 2024 there was virtually no change, confirming a significant slowdown in market activity. In Limassol, the decline was not limited to apartments. House prices also fell by 0.5% in Q2 2024 compared to Q1.
The situation on the Limassol property market has also affected the house segment. In the second quarter of 2024, house prices decreased by 0.5% compared to the first quarter. In recent years, house prices in Limassol have been subject to fluctuations, showing growth from minimum values to 5% per quarter, reaching their peak in mid-2023. The current situation points to a more moderate growth rate in the future.
The situation is different in Larnaca. This coastal area has seen steady growth in property prices over the past three years, with quarterly increases ranging from 1% to 3%. In the last quarter of 2024, apartment prices in Larnaca increased by 0.5% compared to the previous period, after a 1% increase in the first quarter. In the rest of the areas, apartment prices have remained stable, confirming the general trend of decreasing market activity.
Property rental
The rental market in Cyprus is also showing signs of a slowdown in price growth, but the situation varies by area. Overall, rental rates increased by 1% in Q2 2024 compared to the previous quarter. The largest increases were recorded in Paphos and Limassol, where rental rates increased by 5% and 3% respectively. Meanwhile, in Nicosia, rental rates remained stable after increasing by 3% in Q1.
Rental prices for apartments in Limassol have continued to increase since 2021, with the 2% increase in Q2 2024 being significantly lower than the 10% jump in the same period last year. At the same time, rental rates for houses across the island have remained stable, indicating differences in demand for different types of property.
Despite the stabilization of property sales prices , the rental market, especially in Limassol, is under significant pressure, according to Danos International Property Consultants and Valuers , rent for a one-bedroom apartment in Limassol starts from 850 euros per month, while a two-bedroom apartment starts from 1,300 euros. Renting a three-bedroom apartment is becoming less affordable for the average Cypriot, as rents reach 1,700 euros per month. In Nicosia, rent for one-bedroom apartments ranges from 550 to 650 euros, while two-bedroom apartments start from 750 euros per month. In central areas such as Engomi, renting a property will be more expensive. More affordable options can be found in Larnaca and Paphos, but growing interest from foreign investors and high-tech companies may lead to an increase in rents in these cities in the near future.
