- Sale values drop for most property types in Q3 2021, except for apartments
- Rental values decreased for retail properties, warehouses, and offices
- Paphos is the most affected district in terms of Sale values and Larnaca for rents
WiRE FS, combining real estate knowhow with technology, has published its Q3 2021 edition of the WiRE Index for property and rental values. The WiRE Index covers all districts and main property types, with values from Q4 2009.
Across Cyprus, on a quarterly basis, sale values increased by 0.9% for apartments, and decreased by 1.1% for houses, 1.4% for commercial properties, and 1.5% for warehouses and offices. Sale values of holiday apartments and holiday houses increased by 0.3% and decreased by 1.7%, respectively. Nicosia stands out from the districts, as sale values of houses continued to rise for the fourth quarter in a row (1.1%). On an annual basis, prices island-wide increased by 0.7% for apartments, 0.1% for houses and 0.5% for holiday apartments, and decreased by 4.1% for retail properties, 3.8% for warehouses, 2.0% for offices and 4.3% for holiday houses.
On a quarterly basis rental values increased by 1.1% for apartments and 1.3% for houses, and decreased 1.1% for retail properties, 1.4% for warehouses and 2.5% for offices. Rental values of holiday apartments and holiday houses increased by 0.3% and 1.0%, respectively. Paphos stands out from the districts, as rental values of retail properties continued to drop for the fourth quarter in a row (5.3%). On an annual basis, rental values island-wide increased by 0.2% for apartments, 1.2% for houses, and 0.3% for holiday apartments, and decreased by 6.9% for retail properties, 2.3% for warehouses, 4.8% for offices and 4.8% for holiday houses.
Pavlos Loizou, Managing Director of WiRE FS, commented that “the economic slowdown has had a significant impact on commercial properties, retail and offices, affecting particularly small and medium sized enterprises who rely on overseas demand/ visitors or are linked with the tourism industry. In contrast, demand for residential properties, spurred-on by lower interest rates, low deposit rates, and a lack of investment options has resulted in significant investments taking place by locals. Whilst transaction volume has recovered strongly and prices for selected property types are seeing an uplift, we are still miles away from seeing a return to stability as the economy is reliant on tourism and the impact on the banking sector is yet to unfold.”
For a breakdown of movements in Sale and Rental values by district, visit www.wire-fs.com/wire-index.
Across Cyprus: Quarterly percentage change in property values (Q3 2021 with Q2 2021)
Source: WiRE FS
Across Cyprus: Annual percentage change in property values (Q3 2021 with Q3 2020)
Source: WiRE FS