Real estate prices, rents continue to rise

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Across Cyprus in Q2, quarterly property sale values rose 2.9% for apartments, 0.5% for houses and 0.1% for offices, and decreased by 0.3% for retail, and 0.2% for warehouses, according to the Ask WiRE Index.

Holiday apartments and home sale values increased by 2.2% and 0.6%, respectively.

Annually, prices increased by 6.3% for apartments and 2.2% for holiday apartments but decreased by 0.8% for houses, 3.1% for retail, 5.6% for warehouses, 2.4% for offices, and 1.9% for holiday houses.

Larnaca stands out from the districts, as sale values of apartments continued to rise for the fourth quarter in a row (3.1% in Q2 2022).

Every quarter rental values increased by 6.6% for apartments, 5.0% for houses, 0.5% for warehouses, and 1.6% for offices, and remained stable for retail.

As for holiday apartments and houses, rental values increased by 5.7% and 3.7%, respectively.

On an annual basis, rental values increased by 10.9% for apartments, 9.1% for houses, 8.0% for holiday apartments and 6.7% for holiday houses, and decreased by 3.3% for retail, 3.4% for warehouses and 2.6% for offices.

Famagusta stands out from the districts, as rental values of apartments had a significant climb after a year of stability and an increase of 3.4% in Q4 2021 (increased by 7.9% in Q2 2022).

Pavlos Loizou, CEO of Ask WiRE, said, “the influx in population due to in-migration over the first half of 2022, the availability of credit for mortgages, and pent-up demand continues to drive the residential market as investors are looking at ways to generate income”.

“In contrast, the changing landscape around office use and the structure of Cyprus’ banks (fewer staff, branches), the move to online purchases and the appeal of newly opened shopping malls/ destinations in Nicosia and Larnaca are having a significant impact on the office and retail market.

“The headwinds local households face is slowing demand for mortgages, while overseas demand is picking up.

“We are still away from seeing a return to stability, as the global economy and geopolitics landscape keeps shifting.”

Quarterly percentage change in property values (Q1 2022 with Q2 2022)

Property Type Sale Value Rental Value
Apartments 2.9% 6.6%
Houses 0.5% 5.0%
Commercial -0.3% 0.0%
Warehouses -0.2% 0.5%
Office spaces 0.1% 1.6%
Holiday apartments 2.2% 5.7%
Holiday houses 0.6% 3.7%

Source: Ask WiRE

Annual percentage change in property values (Q2 2022 with Q2 2021)

Property Type Sale Value Rental Value
Apartments 6.3% 10.9%
Houses -0.8% 9.1%
Commercial -3.1% -3.3%
Warehouses -5.6% -3.4%
Office spaces -2.4% -2.6%
Holiday apartments 2.2% 8.0%
Holiday houses -1.9% 6.7%

Source: Ask WiRE

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