Market has overcome impacts of Covid-19
By Kyriacos Kiliaris
If you’re in the market for a vacation home on the island, you might be in for a sticker shock, as sale price 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.
According to data from Danos International Property Consultants and Valuers’ reports, rental rates across Cyprus have surged, with vacation apartment rates up by 80 per cent and vacation home rates by 60 per cent compared to 2016.
When it comes to purchasing a holiday home, prices have climbed by about 40 per cent for apartments and 20 per cent 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 Covid-19 pandemic, which saw the island follow the rest of the world into lockdown.
Rental and purchase 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 per cent since 2016 and by 41 per cent since 2019.
One must note that many of these holiday homes are also used as permanent residences, due to the limited supply.
Current rental rates for holiday apartments and homes range from €25 to €30 per square metre, 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 per cent since 2019, with rates ranging from €25 to €30 per square metre. 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 per cent since 2019, with the gap between vacation homes and other districts widening.
Current rental rates range from €23 to €70 per square metre, compared to €20 to €60 in 2019.
Holiday homes in Limassol are popular as permanent residences if they’re near amenities and business hubs, due to the shortage of housing properties.
In Famagusta, rental rates are climbing at a similar pace to Limassol, with holiday apartment and home rents up by 16 per cent, ranging from €21 to €25 per square metre 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 per cent increase since 2019, suggesting more interest in buying rather than renting. The average increase since 2016 is estimated at 30 per cent. In Famagusta, sale prices have risen by about 20 per cent since 2019, averaging between €2,760 and €3,000 per square metre.
Larnaca ranks next in sale prices for holiday homes and apartments, with a 7 per cent increase since 2019. Prices range from €2,300 to €2,900 per square metre.
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 per cent since 2019, with prices averaging around €3,000 per square metre.
Kyriacos Kiliaris is Chief Marketing Officer at Danos International Property Consultants & Valuers
