Property prices, rental increases tapering off

1 min read

Annual Q1 Cyprus property prices increased by 12.3% for apartments, 3.1% for houses, 2.4% for offices, 8% for holiday flats and 3.1% for holiday homes, but decreased by 0.1% for retail and 1.8% for warehouses.

This is according to Q1 2023 Ask Wire Index for property sale and rental values.

Overall, quarterly sale values increased by 3.2% for apartments, 1.3% for houses, 0.4% for retail, and 1.4% for offices, and remained stable for warehouses.

For holiday apartments and holiday houses, sale values increased by 1.8% and 1.5%, respectively.

Regarding rental values, compared to Q1 2022, there was an increase of 19% for apartments, 12.2% for houses, 3.3% for retail, 1% for warehouses, 7.5% for offices, 19.1% for holiday apartments and 14.5% for holiday houses.

Quarterly, rental values increased by 2.6% for apartments, 1.5% for houses, 0.7% for retail, 0.8% for offices, and remained stable for warehouses.

As for holiday apartments and houses, rental values increased by 2.3% and 1.3%, respectively.

Pavlos Loizou, CEO of Ask Wire, said: “The increase in property prices and rents is showing signs of a slowdown, following significant increases since Q1 2022, and being led by apartment and house prices in Limassol, Paphos, and Larnaca.

“The combination of higher interest rates and high prices/rents has created a ceiling, with the market being generally stable but at high levels.

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

“Looking ahead to the second half of 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.”

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

For a breakdown of movements in the sale and rental values by district, visit www.ask-wire.com

Quarterly percentage change in property values (Q4 2022 with Q1 2023)

Property Type Sale Value Rental Value
Apartments 3.2% 2.6%
Houses 1.3% 1.5%
Commercial 0.4% 0.7%
Warehouses 0.0% 0.0%
Office spaces 1.4% 0.8%
Holiday apartments 1.8% 2.3%
Holiday houses 1.5% 1.3%

Source: Ask Wire

Annual percentage change in property values (Q1 2022 with Q1 2023)

Property Type Sale Value Rental Value
Apartments 12.3% 19.0%
Houses 3.1% 12.2%
Commercial -0.1% 3.3%
Warehouses -1.8% 1.0%
Office spaces 2.4% 7.5%
Holiday apartments 8.0% 19.1%
Holiday houses 3.1% 14.5%

Source: Ask Wire