19.07.2024
Ask Wire, a company specializing in real estate transaction monitoring, asking prices, and construction activity, has released a new report, the Ask Wire Index for the second quarter of 2024, covering property purchase and rental prices.
The Ask Wire Index covers all regions and major property types, starting from the fourth quarter of 2009.
Across Cyprus, in the second quarter of 2024, property prices increased year-on-year by 3.5% for apartments, 1% for offices, and 0.6% for holiday apartments. Prices for houses and warehouses remained stable, while commercial property prices decreased by 0.6%, and country houses by 0.2%. On a quarterly basis, prices overall remained stable, with only a slight decrease of 0.1% for houses. Property prices remained stable across all regions of free Cyprus.
Compared to the second quarter of 2023, rental prices increased by 5% for apartments, 0.1% for houses, 0.8% for commercial properties, 3.2% for offices, 2.5% for holiday apartments, and 0.3% for country houses. Rental rates for warehouses decreased by 1.3%.
On a quarterly basis, rental prices for apartments increased by 1.5% and slightly decreased by 0.2% for warehouses, while for other property types, they remained stable.
Ask Wire CEO Pavlos Loizou noted that “ongoing geopolitical risks and continued conflicts are destabilizing the supply chain in the construction industry, increasing project costs. The persistence of high interest rates puts additional pressure on housing affordability, which in turn affects demand for residential property, especially in the middle and lower economic segments of the market. These factors, combined with regional instability, continue to impact demand for real estate from foreign buyers, which is reflected in prices. High mortgage interest rates are likely to persist, limiting the purchasing power of the local population and stabilizing market prices as demand adjusts.”
It is expected that in the third quarter of 2024 and beyond, there will be a decline in prices for investment properties, as well as for high-value assets and rental rates for housing.
