Negative values were recorded in some regions.
Situation
Danos International Property Consultants & Valuers state that the Cypriot real estate market is experiencing a downturn. This trend is being seen for the first time in the past 4 years, with prices starting to level out and decrease in some regions. This information is based on the results for the last quarter.
Limassol
Apartment prices in the priciest city in Cyprus dropped by 0.5% in Q2 2024 compared to the previous 3 months. There was a decrease of nearly 0.5% in the housing category as well.
Larnaca
There was a 0.5% rise in the price of apartments in this area.
Other regions
Price fluctuations in other areas proved to be insignificant resulting in a general market slowdown.
Rental market
The situation in the rental segment is unstable. The national average rental rate increased by 1% in Q2 2024. Meanwhile, the main driving force behind the growth was the rise in prices in Paphos (+5%) and Limassol (+3%). Nicosia and other areas are showing signs of stability.
Danos International Property Consultants and Valuers mention that the monthly rental prices for 1-bedroom apartments in Limassol start at €850, while 2-bedroom properties start at €1,300. Renting a 3-bedroom flat in Cyprus is becoming more unaffordable, with an average monthly price of €1,700, when compared to the average salary.
A 1-bedroom apartment in Nicosia can be rented for €550-€650, while a 2-bedroom property starts at €750 per month. Nevertheless, the rent cost differs greatly depending on the area.
Rental prices in Larnaca and Paphos are more appealing, but due to the growing number of international companies and investor interest in these cities, prices are expected to rise in the coming years.
Trends and forecast
Based on year-over-year information, the value of apartments increased by 3.5% in Q2, while the price of houses remained the same. The rise in apartment prices demonstrates the consistent demand for housing in Cyprus driven by foreign investors' interest.
According to the forecast, the luxury housing sector in Limassol will be the primary market driver in 2024. The city will continue to be the main destination for luxurious apartment and seaside complex investments.
The public sector is expected to develop in Nicosia, which will attract students, businessmen and civil servants.
Moreover, the decreasing quarterly pattern might also suggest forthcoming market shifts.