House prices stable, property rentals drop

Cyprus real estate prices & rentals recorded quarter-on-quarter drops across most property categories, but house values remained stable, according to consultancy firm WiRE FS.

Paphos had some of the biggest quarteron-quarter drops in prices (2.6% for retail units, 1.7% for warehouses, 1.5% for offices, 3.2% for holiday apartments and 2.5% for holiday homes). Limassol had the biggest drop in office rents (11.1%).

According to the first Wire FS Q1 2021 market overview, Nicosia was the only district with a price increase in some sectors (1.2% for houses, 1.3% for retail and 2.3% for offices). Prices of holiday houses and apartments fell by 1% and 0.2% respectively.

The biggest drops were in Limassol (1.8% for apartments) and Paphos (3.2% for holiday apartments and 2.5% for holiday houses).

Residential prices for apartments remained broadly the same compared to Q4 2020 and increased by 0.4% for houses.

Prices of retail properties and warehouses fell by 0.7% and 0.8% respectively, whilst those of offices increased by 0.3%.

Compared to Q1 2020, prices of retail units fell by 5.3%, warehouses by 4.5%, office space by 1.0%, holiday apartments by 1.2% and holiday homes by 3.2%. Over the same period, house prices increased by 1.5%.

Quarter-on-quarter rental prices decreased by 0.1% for apartments, 1.4% for houses, 1.8% for retail units, 2,6% for offices, 0.4% for holiday apartments and 2.9% for holiday houses, while rental values for warehouses increased 0.4%.

Compared to Q1 2020, rents dropped by 0.6% for apartments, 6.4% for retail properties, 3.2% for offices, and 5.4% for holiday homes.

Rents of houses, warehouses and holiday apartments increased by 2.6%, 0.7% and 0.1%, respectively.

Transaction Volume year-on-year across Cyprus decreased by 21%.

Transactions in Nicosia increased by 8% and decreased in Limassol by 24%, in Larnaca by 22%, in Famagusta by 11%, and in Paphos by 40%.

Over the past year, April 2020 to March 2021, contracts of sale were deposited for 7,932 properties, of which 2,186 in Nicosia (28%), 2,491 in Limassol (31%), 1,240 in Larnaca (16%), 576 in Famagusta (7%) and 1,469 in Paphos(19%).