Apartment prices and rents in Cyprus defied broader market declines in Q3 2024, showing strong demand, according to a report by real estate analytics firm Ask Wire.
The report, which is based on the firm’s proprietary index that tracks property sale and rental values across all districts and property types since 2009, highlighted the contrasting performance of different property segments amid challenging market conditions.
Apartments proved resilient, recording a 1.2% year-on-year increase in sale prices, supported by robust demand. Holiday apartments also saw a marginal annual rise of 0.1%. In contrast, other property types faced declines, with warehouse prices falling by 1.8%, retail spaces by 1.4%, and houses and offices by 0.8%.
On a quarterly basis, most categories experienced price declines, except for holiday apartments, which posted a 1.4% increase. District-wide, prices fell across Cyprus, with Larnaca standing out for its relative stability.
Rental values for apartments grew annually by 1.9%, reflecting continued demand. However, other categories struggled, with annual declines in warehouses (-2.0%), houses (-0.8%), and retail spaces (-0.7%). Holiday house rental values remained stable year-on-year, marking a rare point of consistency in an otherwise fluctuating market.
Quarterly, rents for apartments declined by 1.2%, warehouses by 1.8%, and houses by 0.8%, while holiday rentals remained stable across most districts, with only minor decreases in Nicosia and Limassol.
Pavlos Loizou, CEO of Ask Wire, commented, “The Cyprus property market is navigating significant challenges as elevated construction costs and disruptions to the supply chain, influenced by ongoing geopolitical tensions, continue to shape property prices and demand patterns.
“High mortgage rates are adding pressure to affordability, particularly in the middle and lower segments, tempering overall demand. For investors and lenders, the convergence of high interest rates, construction costs, and regional instability underscores the need for caution in the near term.
“As we look to Q4 and into 2025, we anticipate more selective investment, with stability expected in certain asset types as the market continues to adjust.”
For a breakdown of movements in sale and rental values by district, visit https://ask-wire.com/insights/.
| Property Type | Prices | Rents |
| Apartments | -0.1% | -1.2% |
| Houses | -0.8% | -0.8% |
| Commercial | -0.8% | -0.7% |
| Warehouses | -1.8% | -1.8% |
| Office spaces | -0.5% | -0.6% |
| Holiday apartments | 0.4% | 0.0% |
| Holiday houses | -0.4% | 0.0% |
| Source: Ask WiRE – Across Cyprus: Quarterly percentage change in property values (Q2 2024 with Q3 2024) | ||
| Property Type | Prices | Rents |
| Apartments | 1.2% | 1.9% |
| Houses | -0.8% | -0.8% |
| Commercial | -1.4% | -0.7% |
| Warehouses | -1.8% | -2.0% |
| Office spaces | -0.8% | -0.6% |
| Holiday apartments | 0.1% | -1.0% |
| Holiday houses | -0.6% | 0.3% |
| Source: Ask WiRE – Across Cyprus: Annual percentage change in property values (Q3 2023 with Q3 2024) | ||
Further Reading
Ask Wire Index: Q3 2024 press release.
