Apartment Market Drives Property Sales and Rentals in Cyprus
Apartment Market Drives Property Sales – The Cyprus property market experienced selective growth in the fourth quarter of 2024, with apartment values leading the way, according to a survey by Ask Wire. Apartment prices increased by 1.3% year-on-year, while holiday apartments saw a 0.9% rise.
In contrast, other property categories recorded declines. Warehouse values dropped by 2.3%, retail spaces by 1.7%, and houses, offices, and holiday villas declined by 0.3%, 0.2%, and 0.6%, respectively, reflecting shifting market dynamics.
Tourism-Driven Demand Supports Apartment Growth
“Demand for apartments remains strong, supported by the resilience of the tourism sector, which is expected to achieve a record year in 2025,” said Pavlos Loizou, CEO of Ask Wire.
On a quarterly basis, apartment prices increased by 0.6%, while offices and houses saw a modest rise of 0.2%. Meanwhile, retail prices declined by 0.9%, warehouse values by 0.5%, and holiday villas by 0.2%. Holiday apartment prices remained stable.
At a district level, property values declined across most regions, with Larnaca showing relative stability.
Mixed Trends in Rental Values
Rental values followed a similarly mixed pattern. Compared to Q4 2023, apartment rental prices increased by 1.5%, while holiday apartment rents rose by 1.1%. However, declines were observed in warehouses (-2.0%), retail spaces (-2.0%), houses (-0.8%), and office spaces (-0.6%). Holiday house rental values remained unchanged over the year.
On a quarterly basis, holiday apartment rents increased by 1.1%, while apartment rentals rose by 0.2%. Houses, warehouses, and offices remained stable.
District-level rental trends were largely steady, except for Nicosia and Limassol, where apartment rents decreased, while Paphos recorded an almost 5% surge in apartment rental values.
Market Stabilization and Future Outlook
According to Loizou, the introduction of new housing supply is helping to ease pressure on residential prices and rental rates, providing relief after a period of rapid market expansion.
“While challenges such as high mortgage rates and elevated construction costs persist, they are selectively tempering demand rather than causing a broad market slowdown. Overall, the market is stabilizing, with opportunities emerging in segments driven by both tourism and sustained local demand,” Loizou stated.
For a detailed breakdown of sales and rental movements by district, visit Ask Wire Insights.
Credit Inspirations go to the Financial Mirror.
