Apartment prices, rents climbing

1 min read

Annually, average Cyprus real estate prices increased by 9.9% for apartments, 1.0% for houses, and 0.3% for offices, according to the Q4 2022 Ask WiRE property index.

Sales prices also increased by 4.7% for holiday apartments and 0.9% for holiday homes but decreased by 1.4% for retail and 3.7% for warehouses.

Nicosia stood out from other districts as sale prices of apartments continued to rise throughout the year (2.5% in Q4 2022).

Overall, quarterly sale values increased by 1.6% for apartments, 0.1% for houses, and 0.4% for offices and remained stable for retail and warehouses.

Holiday apartments and holiday house sale values increased by 1.9% and 0.4%, respectively.

For rental values, it was a different story compared to Q4 2021.

There was an 18.2% rent rise for apartments, 11.6% for houses, 0.9% for retail, 6.3% for offices, 16.9% for holiday apartments and 12.8% for holiday houses, whilst warehouse rents decreased by 0.4%.

Paphos took the lead for the rental values of holiday apartments and houses, with a quarterly increase of 5.0% and 11.8%, respectively, in Q4.

Quarterly average rents increased by 2.7% for apartments, 1.1% for houses, 1.7% for retail, and 0.8% for offices, and remained stable for warehouses.

As for holiday apartments and homes, rental values increased by 3.6% and 5.9%, respectively.

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

“With inflation eroding disposable incomes and interest rates rising, we have seen a slowing down of demand in the second half of the year and prices stabilising in Nicosia and Limassol.

“We expect pricing of commercial properties to come under pressure, as alternative investment classes offer appealing returns on a risk-adjusted basis.

“Looking ahead to 2023, we expect residential property prices to remain broadly stable, albeit with slowing demand and less transaction volume, whilst commercial real estate will face various challenges, with investor demand remaining relatively thin.”

For a breakdown of sale and rental values by district, visit https://www.wire-fs.com/category/data-analytics/

Quarterly property values (Q3 with Q4 2022)

Property Type Sale Value Rental Value
Apartments 1.9% 2.7%
Houses 0.1% 1.1%
Commercial 0.0% 1.7%
Warehouses 0.0% 0.0%
Office spaces 0.4% 0.8%
Holiday apartments 1.9% 3.6%
Holiday houses 0.3% 5.9%

Source: Ask WiRE

Annual change in property values (Q4 2021 with Q4 2022)

Property Type Sale Value Rental Value
Apartments 9.9% 18.2%
Houses 1.0% 11.6%
Commercial -1.4% 0.9%
Warehouses -3.7% -0.4%
Office spaces 0.3% 6.3%
Holiday apartments 4.7% 16.9%
Holiday houses 0.9% 12.8%

Source: Ask WiRE

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