Ask Wire sees the stabilization of prices, despite the decrease in housing demand in the 4th quarter of 2023, as it states in its announcement.
The new edition of the Q3 2023 Ask Wire Index for property sales and rental prices states that, across Cyprus, on a year-on-year basis, in Q3 2023, prices increased by 12.2% for apartments, 4.6% for houses, 4.4% for offices, 1.2% for commercial properties, 8.8% for holiday apartments, 3.7% for holiday homes and decreased by 1.5% for warehouses.
Overall, on a quarterly basis values increased by 2.2% for apartments and by 1.3% for offices. Sales value remained flat for homes, commercial properties and warehouses. In terms of holiday apartments, values increased by 0.8% and were flat for holiday homes.
In terms of rental prices, compared to Q3 2022 there was an increase of 13.3% for apartments, 9.2% for houses, 6.6% for commercial properties, 9.9% for offices, 13.4% for holiday apartments and 11% for holiday homes. A decrease of 0.6% was observed for warehouses.
On a quarterly basis rental prices increased by 1.8% for apartments, 0.1% for houses, 0.8% for commercial properties and 3.2% for offices. A decrease of 1.1% was observed in warehouses. Regarding holiday apartments and holiday homes, rental prices increased by 3.3% and 0.3%, respectively.
Pavlos Loizou, CEO of Ask Wire, commented that “the upward trend in property values and rents from Q3 2022 is not slowing down, mainly due to price increases in Limassol and Larnaca. However, political instability in the region, inflation and the combination of rising interest rates and high prices and rents have created a steady, if high, margin for purchase.”
Looking ahead to Q4 2023, Mr Loizou says residential property prices are expected to remain fairly stable, despite potentially lower demand and reduced transaction volume. We also expect commercial real estate prices to come under pressure as alternative investments provide attractive risk-adjusted returns.”
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