Both apartment prices and rental costs in Cyprus increased during the fourth quarter of 2024, rising by 1.3 per cent and 1.5 per cent year-on-year, respectively, according to real estate analytics firm Ask Wire.
In its latest report, the company explained that this latest increase in prices is a reflection of strong demand.
A closer look at the firm’s fourth-quarter report reveals growth in specific segments, with annual sale price changes showing a 1.3 per cent rise in apartment values and a 0.9 per cent increase in holiday apartments.
“However,” the company pointed out, “other property categories recorded declines.”
Warehouses fell by 2.3 per cent, retail spaces by 1.7 per cent, and houses, offices, and holiday villas by 0.3 per cent, 0.2 per cent, and 0.6 per cent, respectively, reflecting a shifting demand landscape.
On a quarterly basis, retail space prices fell by 0.9 per cent, warehouses by 0.5 per cent, and holiday villas by 0.2 per cent.
In contrast, office and house prices rose by 0.2 per cent, apartments by 0.6 per cent, while holiday apartments remained unchanged.
Moreover, the company reported that in district-wide terms, prices decreased across Cyprus, with Larnaca remaining relatively stable.
“Rental values have seen a similarly mixed picture,” the company stated, noting that when compared to the same quarter in 2023, apartment rental values increased by 1.5 per cent, while holiday apartments rose by 1.1 per cent.
The company explained that this “suggests continuing demand in this segment,” before mentioning that other areas experienced declines.
Elsewhere, rents for warehouses and retail spaces fell by 2.0 per cent, houses by 0.8 per cent, and offices by 0.6 per cent.
“Notably, holiday house rental values remained steady over the past year,” the company said.
On a quarterly basis, rents for holiday apartments rose by 1.1 per cent and apartments by 0.2 per cent, while houses, warehouses, and offices remained stable.
Across districts, rental values were largely unchanged, except in Nicosia and Limassol, where apartment rents saw notable declines.
In contrast, Paphos experienced an almost 5 per cent increase in apartment rents.
Ask Wire CEO Pavlos Loizou stated that the company’s latest report for the fourth quarter of 2024 “reflects a market in transition, balancing strong fundamentals with evolving dynamics.”
“Demand for apartments remains healthy, supported by resilience in tourism, which is set for a record year in 2025,” he said.
Furthermore, he explained that “new housing supply is beginning to ease pressure on residential prices and rents, offering relief to a market that has faced rapid growth in recent years.”
“While challenges like high mortgage rates and elevated construction costs persist, they are tempering demand selectively rather than broadly,” Loizou added.
“Overall, the market is stabilising, with opportunities emerging in segments driven by both tourism and sustained local demand,” the Ask Wire CEO concluded.
