Apartment prices continued its upward momentum in Q4 2022

Apartments continued to drive the rising real estate prices in the fourth quarter of 2022, data published by the Aks WiRE Index show.

According to the index, across Cyprus, on an annual basis, prices increased by 9.9% for apartments, 1.0% for houses, 0.3% for offices, 4.7% for holiday apartments and 0.9% for holiday houses.

On the contrary, prices declined by 1.4% for retail and 3.7% for warehouses.

Nicosia stands out from other districts, as sale prices of apartments continued to rise throughout the year (2.5% in Q4 2022).

Overall, on a quarterly basis sale values increased by 1.6% for apartments, 0.1% for houses, and 0.4% for offices, and remained stable for retail and warehouses. As for holiday apartments and holiday houses sale values increased by 1.9% and 0.4%, respectively.

With regard to rental values, compared to Q4 2021 there has been an increase of 18.2% for apartments, 11.6% for houses, 0.9% for retail, 6.3% for offices, 16.9% for holiday apartments and 12.8% for holiday houses, whilst rents of warehouses decreased by 0.4%.

Paphos stands out from the districts, as rental values of holiday apartments and holiday houses had a significant increase for another quarter (increased by 5.0% and 11.8% respectively in Q4 2022).

Pavlos Loizou, CEO of Ask WiRE, commented that “the influx in population due to in-migration throughout 2022 and pent-up demand over the past couple of years continues to drive the residential market”, adding that with inflation eroding disposable incomes and interest rates rising, we have seen a slowing down of demand in the second half of the year and prices stabilizing in Nicosia and Limassol.

"Looking ahead to 2023, we expect residential property prices to remain broadly stable, albeit with slowing demand and less transaction volume, whilst commercial real estate will face various challenges, with investor demand remaining relatively thin” he added.