24.04.2021
A new index created by Wire FS shows that property values in Cyprus fell in the first quarter of 2021 across most categories. Rental prices in most areas have also declined.
Apartment prices fell by 0.5% in Q1 2021 compared to the same period in 2020, home prices lost 1.5%. Falls in other sectors: commercial real estate (retail) – by 5.3%, warehouses – by 4.5%, office space – by 1.0%, vacation apartments – by 1.2%, and vacation homes – by 3.2%.
By analogy with 2020, the beginning of 2021 was marked by a fall in property prices in all areas. The reason was also the pandemic and the ensuing restrictions.
“The significant drop in wholesale prices is unlikely to last long as demand rises. This is facilitated by the increased interest of logistics companies and organizations that are expanding online sales channels,” explains Pavlos Loizou, Managing Director of Wire FS.
“We also expect a recovery in the value of leisure properties soon. When the situation with the pandemic is brought under control, demand will gradually increase. Since a lot of foreign investors are now unable to get to the island due to restrictions,” he adds.
“Prices for commercial (retail) real estate will recover to their previous values more slowly, and it will be harder to return to positive indicators. The reason for this is a change in priorities in purchases and ways of making them on the part of potential investors,” says Loizou.In terms of rent, there is a decrease in prices year on year for apartments (-0.6%), commercial stores (-6.4%), offices (-3.2%) and holiday homes (-5.4%). At the same time, rental prices for residential buildings (2.6%), warehouses (0.7%) and holiday apartments (0.1%) increased slightly.
“The conclusions are expected in the current situation of financial instability. The slight increase in the cost of renting housing seems to be dictated by the fact that after a year of restrictions, people are more willing to rent houses with an open area, rather than apartments. However, it is important to understand that it is difficult to predict all the consequences of a pandemic, since relatively little time has passed, ”explains Loizu.
