According to WiRE FS findings, prices and transaction volume of real estate at city centres in Nicosia and Limassol remain stable, as locals, taking advantage of government subsidies, continue to acquire residential property.
Their focus is mainly apartments, mostly for homeownership but also to generate rental income.
Businesses are upgrading their office space requirements, resulting in an increase in demand for Grade A office space and a contraction across lower quality premises.
However, the other districts, specifically Paphos and Famagusta, are continuing to experience low demand levels, as they are more reliant on overseas markets and have a higher dependency on tourism.
The situation in Larnaca is notably positive, as recent changes such as the signing of the Larnaca Marina Development Project contract, removal of the oil refineries, and the attraction of Lebanese and Israelis to the city have boosted demand across all asset classes.
Commenting on the state of the real estate market, WiREs’ CEO, Pavlos Loizou, said: “There is a significant mismatch between supply and demand, which is resulting in imbalances across asset classes.
“There is significant supply of land, (dated) industrial buildings, and large houses available for sale, while demand is mainly for housing (apartments) in the city centre and good quality offices.
“This mismatch is causing a significant increase in prices for specific properties, while for other types of property prices are decreasing as there is a lack of demand.”
WiRE’s Cyprus Property Market Overview includes the latest updates on Cyprus’ real estate sector to inform buyers or sellers.
Its quarterly issuance aims at contributing to an increase in transparency and public awareness in the property market.
WiRE FS monitors and analyses the developments and challenges in Cyprus’ real estate market.