The Cyprus holiday home market has risen to unprecedented heights, shaking off the lingering effects of the COVID-19 pandemic. Both rental rates and selling prices have soared, reaching their highest point in the last eight years.
Holiday rentals, whether apartments or houses, have surged to levels not seen since 2016, with Limassol experiencing a staggering price hike of over 100%. According to data from Danos International Property Consultants and Valuers, nationwide rental increases hover around 80% for apartments and 60% for houses, compared to 2016 figures.
Similarly, selling prices have surged, with apartments and houses seeing increases of 40% and 20% respectively. These increases follow a slump in 2020 due to the pandemic, but since 2022, prices have been rising steadily.
Larnaca leads in rental increase for holiday homes, with rents rising 74% since 2016 and 41% since 2019. Notably, many of these properties are also marketed as permanent residences.
Holiday rentals now command between €25 and €30/sqm, a significant jump from the €18 to €22 range in 2019. Prices vary based on factors like location, age, and outlook.
Larnaca is followed closely by Paphos in rent increases, with rates climbing by 24.5% compared to 2019, fetching between €25 and €30/sqm.
Interestingly, Limassol, although ranking third in rent increases, is witnessing a narrowing gap with other districts, with rents ranging from €23 to €70/sqm, compared to €20 to €60 in 2019. Holiday homes in Limassol are also in high demand as permanent residences, especially if they offer proximity to amenities and commercial areas.
In Famagusta, rental prices are on par with Limassol, with increases of 16% and rates ranging from €21 to €25/sqm for high-standard accommodations.
As for selling prices, Limassol commands the highest figures, exceeding €4,000/sqm, marking a 20% increase since 2019. This suggests a growing inclination towards property ownership over renting.
Famagusta follows suit, witnessing a 20% increase in selling prices since 2019, averaging between €2,760 and €3,000/sqm.
Larnaca comes next in selling prices, experiencing a 7% rise since 2019, with prices ranging from approximately €2,300 to €2,900/sqm.
In contrast, Paphos sees a modest increase in selling prices, making it an attractive investment prospect compared to rental rates. Purchasing a holiday home in Paphos has seen a 15% increase since 2019, with prices averaging around €3,000/sqm.