Properties show stability, annual growth in prices and rents

Property prices increased by 6.3% year on year for apartments across Cyprus, 2.1% for houses, 3.0% for offices, 0.4% for retail, 3.6% for holiday apartments, 1.0% for holiday houses, and remained stable for warehouses, according to the Q1 2024 edition of the Ask Wire Index.

Overall, on a quarterly basis values increased by 0.8% for apartments, by 0.4% for houses, by 0.2% for offices and 0.5% for holiday apartments. Prices of retail, warehouses and holiday houses remained unchanged. In terms of prices, Limassol has the highest percentage increase for both apartments and houses, the AskWire survey said.

As regards rental values, compared to Q1 2023 there was an increase of 9.3% for apartments, 6.4% for houses, 4.2% for retail, 8.2% for offices, 5.9% for holiday apartments and 3.4% for holiday houses. There was a slight decrease of 0.6% for warehouses’ rents.

On a quarterly basis rental values increased by 0.9% for apartments and remained stable for the rest of the properties.

“Geopolitical tensions and unrest in the region continue to influence overseas real estate demand, accelerating the pace at which prices are affected. Additionally, high mortgage rates are likely to persist, diminishing local’s buying power and stabilising market prices as demand adjusts,” said Pavlos Loizou, CEO of Ask Wire.

“Moving into the second quarter of 2024 and beyond, we expect property prices for opportunistic investments to decelerate. This combination of high interest rates, increasing construction costs, and regional unrest could significantly impact the market’s stability and influence investment decisions in the long run.”

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