Sharp rise in Paphos rental prices

3 mins read

 Across Cyprus, quarterly, sale values increased by 3.9% for apartments, 1.1% for houses, 0.6% for offices, and decreased by 0.3% for retail and 1.5% for warehouses, according to the Q3 Ask WiRE Index.

As for holiday apartments and houses, sale values increased by 1.9% and 0.6%, respectively.

On an annual basis, prices increased by 9.4% for apartments, 1.4% for houses, 3.9% for holiday apartments and 0.4% for holiday homes, while they decreased by 1.9% for retail, 5.6% for warehouses, and 0.4% for offices.

Limassol stands out from the districts, as sale values of apartments continued to rise for the fourth quarter in a row (4.8% in Q3 2022).

Quarterly, rental values increased by 6.0% for apartments, 4.2% for houses, 0.9% for retail, 0.5% for warehouses, and 4.1% for offices.

As for holiday apartments and houses, rental values increased by 6.4% and 3.0%, respectively.

On an annual basis, rental values increased by 16.2% for apartments, 12.2% for houses, 3.9% for offices, 14.5% for holiday apartments and 10.2% for holiday houses, and decreased by 1.3% for retail and 1.6% for warehouses.

Paphos stands out, as rental values of apartments and holiday apartments had a significant increase for another quarter (increasing by 12.5% and 11.1%, respectively, in Q3).

Pavlos Loizou, CEO of Ask WiRE, said: “The influx in population due to in-migration over the first three quarters of 2022 and pent-up demand over the past couple of years continues to drive the residential market.

“However, we see signs of a pull-back in investor appetite due to the higher cost of credit and availability of other investment opportunities in bonds, stocks, etc.

“Inflation and the higher costs of credit continue to affect local households, whilst migrants, typically earning above average salaries, are driving the top-end of the market.

“We are increasingly seeing a two-tier market evolving, each having its own characteristics and drivers.

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

For a breakdown of movements in the sale and rental values by district, visit https://ask-wire.com/blog/category/data-analytics.

Quarterly percentage change in property values (Q2 2022 with Q3 2022)

Property Type Sale Value Rental Value
Apartments 3.9% 6.0%
Houses 1.1% 4.2%
Commercial -0.3% 0.9%
Warehouses -1.5% 0.5%
Office spaces 0.6% 4.1%
Holiday apartments 1.9% 6.4%
Holiday houses 0.6% 3.0%

Source: Ask WiRE

Annual percentage change in property values (Q3 2022 with Q3 2021)

Property Type Sale Value Rental Value
Apartments 9.4% 16.2%
Houses 1.4% 12.2%
Commercial -1.9% -1.3%
Warehouses -5.6% -1.6%
Office spaces -0.4% 3.9%
Holiday apartments 3.9% 14.5%
Holiday houses 0.4% 8.7%

Source: Ask WiRE

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