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House prices dip, flats gain in value

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Cyprus property sale values in Q3 increased by 0.9% for apartments, but decreased by 1.1% for houses, 1.4% for commercial properties, 1.5% for warehouse and office space, according to the WiRE Index.

Sale values of holiday apartments and holiday homes increased by 0.3% and decreased by 1.7%, respectively.

Nicosia stands out, as sale values of houses continued to rise for the fourth quarter in a row (1.1%).

On an annual basis, prices islandwide increased by 0.7% for apartments, 0.1% for houses and 0.5% for holiday apartments.

They decreased by 4.1% for retail properties, 3.8% for warehouses, 2% for offices and 4.3% for holiday homes.

On a quarterly basis, rental values increased by 1.1% for apartments and 1.3% for houses, and decreased 1.1% for retail properties, 1.4% for warehouses and 2.5% for offices.

Rental values of holiday apartments and holiday houses increased by 0.3% and 1.0%, respectively.

Paphos suffered most as rental values of retail properties continued to drop for the fourth quarter in a row (5.3%).

On an annual basis, rental values islandwide increased by 0.2% for apartments, 1.2% for houses, and 0.3% for holiday apartments, and decreased by 6.9% for retail properties, 2.3% for warehouses, 4.8% for offices and 4.8% for holiday houses.

Pavlos Loizou, Managing Director of WiRE FS said: “The economic slowdown has had a significant impact on commercial properties, retail and offices, affecting particularly small and medium-sized enterprises who rely on overseas demand/ visitors or are linked with the tourism industry.

“In contrast, demand for residential properties, spurred on by lower interest rates, low deposit rates, and a lack of investment options has resulted in significant investments taking place by locals.

“Whilst transaction volume has recovered strongly and prices for selected property types are seeing an uplift, we are still miles away from seeing a return to stability as the economy is reliant on tourism and the impact on the banking sector is yet to unfold.”

Quarterly percentage change in property values

Property Type Sale Value Q2 2021 Rental Value Q3 2021
Apartments 0.9% 1.1%
Houses -1.1% 1.3%
Commercial -1.4% -1.1%
Warehouses -1.5% -1.4%
Office spaces -1.5% -2.5%
Holiday apartments 0.3% 0.3%
Holiday homes -1.7% 1.0%

Source: WiRE FS

Annual percentage change in property values  

Property Type Sale Value Q3 2021 Rental Value Q3 2020
Apartments 0.7% 0.2%
Houses 0.1% 1.2%
Commercial -4.1% -6.9%
Warehouses -3.8% -2.3%
Office spaces -2.0% -4.8%
Holiday apartments 0.5% 0.3%
Holiday homes -4.3% -4.8%

Source: WiRE FS

The WiRE Index covers all districts and main property types, with values from Q4 2009.

For a breakdown of movements in Sale and Rental values by district, visit www.wire-fs.com/wire-index.