Rental values rising across all property types

1 min read

 Across Cyprus, annual prices increased by 12.2% for apartments, 4.6% for houses, 4.4% for offices, 1.2% for retail, 8.8% for holiday flats, 3.7% for holiday homes, and decreased by 1.5% for warehouses, according to the Ask Wire Q2 2023 index.

Quarterly values increased by 2.7% for apartments, 2.0% for houses, 1.0% for retail, 2.0% for offices, and remained stable for warehouses.

As for holiday flats and homes, values increased by 3.0% and 1.2%, respectively.

Regarding rental values, compared to Q2 2022, there has been an increase of 17.9% for apartments, 13.6% for houses, 6.8% for retail, 1% for warehouses, 10.8% for offices, 16.5% for holiday apartments and 13.9% for holiday houses.

Quarterly, rental values increased by 5.6% for apartments, 6.2% for houses, 3.3% for retail, 4.8% for offices, and 0.5% for warehouses.

Holiday apartments and house rental values increased by 3.3% and 3.2%, respectively.

Pavlos Loizou, CEO of Ask Wire, said: “The rising trend in property values and rental rates since Q2 2022 isn’t slowing down, particularly due to the increase in prices of apartments and houses in Limassol, Paphos, and Larnaca.

“However, the blend of increased interest rates and high prices/rents has established a stable, albeit high, market threshold.

“We expect commercial property pricing to feel increased pressure as alternative investments provide attractive risk-adjusted returns.

“Looking forward to Q3 2023, we foresee residential property prices remaining fairly steady, despite potentially slower demand and reduced transaction volume.

“Investor demand for commercial properties might remain somewhat restrained.”

For a breakdown of movements in sale and rental values by district, visit https://ask-wire.com/insights/.

Quarterly percentage change in property values (Q1 2023 with Q2 2023)

Property Type Sale Value Rental Value
Apartments 2.7% 5.6%
Houses 2.0% 6.2%
Commercial 1.0% 3.3%
Warehouses 0.0% 0.5%
Office spaces 2.0% 4.8%
Holiday apartments 3.0% 3.3%
Holiday houses 1.2% 3.2%

Source: Ask Wire

Annual percentage change in property values (Q2 2022 with Q2 2023)

Property Type Sale Value Rental Value
Apartments 12.2% 17.9%
Houses 4.6% 13.6%
Commercial 1.2% 6.8%
Warehouses -1.5% 1.0%
Office spaces 4.4% 10.8%
Holiday apartments 8.8% 16.5%
Holiday houses 3.7% 13.9%

Source: Ask Wire