Breaking free from Covid impact
If you’re in the market for a vacation home in Cyprus, you might be in for some sticker shocks, as sale prices and rental rates for these properties have soared to eight-year highs, showing that the sector has rebounded fully from the COVID-19 pandemic.
Rental rates for apartments and vacation homes have reached their highest levels since 2016, with prices more than doubling in Limassol, according to property experts.
Danos International Property Consultants and Valuers reports that rental rates across Cyprus have surged, with vacation apartment rates up by 80% and vacation home rates by 60%, compared to 2016.
When it comes to purchasing a holiday home, prices have climbed by about 40% for apartments and 20% for homes.
The rental rates (monthly) and sale prices for holiday apartments and homes had been climbing steadily from 2016 to 2019, to take a nosedive in 2020 due to the coronavirus pandemic, which saw the island follow the rest of the world into lockdown.
In comments to the Financial Mirror, Kyriacos Kiliaris, Chief Marketing Officer at Danos, noted that prices started climbing again from 2022, hitting record highs this year.
“Larnaca leads the pack in rental rate increases for holiday homes, with rates up by 74% since 2016 and by 41% since 2019,” he said.
“Interestingly, many of these holiday homes are also used as permanent residences.”
Kiliaris said that current rental rates for holiday apartments and homes range from €25 to €30 per square meter, compared to €18 to €22 in 2019. These rates depend on factors like age, location and view.
Paphos follows Larnaca in terms of rental rate increases for holiday apartments and homes.
The average rent has increased by 24.5% since 2019, with rates ranging from €25 to €30/sq.m. Lower rates are available for second-tier properties.
Surprisingly, Limassol is in third place for rental rate increases in seaside holiday homes, despite holiday homes in the coastal city remaining the priciest.
Rental rates in Limassol have climbed by 16.2% since 2019, with the gap between vacation homes and other districts widening.
Current rental rates range from €23 to €70/sq.m., compared to €20 to €60 in 2019.
Limassol shortage
Danos’ CMO pointed out that holiday homes in Limassol are popular as permanent residences if they’re near amenities and business hubs, due to the shortage of housing in the coastal town.
In Famagusta district, home to the popular resorts of Ayia Napa, Protaras and Paralimni, rental rates are climbing at a similar pace to Limassol, with holiday apartment and home rents up by 16%, ranging from €21 to €25 a square meter for high-standard properties.
As for sale prices, Limassol’s holiday homes remain the priciest, with rates exceeding €4,000 per square meter. That’s a 20% increase since 2019, suggesting more interest in buying rather than renting.
The average increase since 2016 is estimated at 30%.
In Famagusta, sale prices have risen by about 20% since 2019, averaging between €2,760 and €3,000/sq.m.
Larnaca ranks next in sale prices for holiday homes and apartments, with a 7% increase since 2019. Prices range from €2,300 to €2,900/sq.m.
In Paphos, sale prices for holiday apartments and homes have shown a slight increase, creating some investment opportunities due to the lower rent increase. The cost of buying a holiday home in Paphos has risen by about 15% since 2019, with prices averaging around €3,000/sq.m.
