Panayiotis Rougalas
In the latest property data, the real estate landscape in Cyprus paints a picture of continuous growth, particularly in the apartment sector. However, a closer look reveals a potential plateau in the high-end market, specifically for properties priced at 500 thousand euros and above.
During the third quarter of 2023, house prices in Cyprus maintained an upward trajectory, notably for apartments. Valuers anticipate a shift in the upcoming six months, foreseeing a decrease in the prices of predominantly expensive properties. Paul Loizou, CEO of Ask Wire, sheds light on this evolving scenario in an exclusive conversation with "K."
Loizou highlights a dynamic property market in Limassol province, citing a surge in transactions for apartments across various price ranges until mid-2022. However, he notes a subsequent fluctuation with "peaks and troughs" from mid-2022 onwards. The most significant impact is observed in higher-priced apartments, witnessing the most substantial relative decline.
Analyzing transaction data from January 2021 to September 2023, Loizou emphasizes changing consumer preferences. Initially, apartments below EUR 300,000 dominated the market, commanding around 80% of transactions. Over time, this segment's share decreased to 60%, while the price category from 300,000 to 500,000 euros experienced significant growth, doubling its market share.
A general upward trend in sales persisted until mid-2022, followed by fluctuations and a marked decrease in volume across the market from June 2023. Notably, higher-priced apartments bore the brunt of this decline.
Loizou suggests a shift in the composition of transactions, with properties valued higher than 300 thousand euros constituting about 80% of the volume in January 2021. By September 2023, this figure decreased to approximately 60%. Surprisingly, the most substantial increase in transaction volume occurred in properties worth 300,000 to 500,000 euros, rising from 10% of transactions in January 2021 to constituting 25% of the total transaction volume.
Discussing property prices, Loizou anticipates reductions for properties above 500 thousand euros in the next six months. When asked about reductions in more "normal" property prices, he suggests "keeping a smaller basket," indicating possible small decreases, around 3%, for these properties. Loizou concludes by noting that prices of expensive properties are likely to fall due to increased supply in this category and a decrease in foreign interest.
As the real estate market in Cyprus undergoes these shifts, the coming months will be crucial in understanding the evolving dynamics, especially for high-end properties.
[This article was translated from its Greek original]
