Theano Thiopoulou
Prices for the sale and rental of apartments and houses are not understood by a pandemic and despite the crisis in the economy due to COVID, they followed an upward trend. On the contrary, rents for commercial real estate, warehouses and offices are more vulnerable to downward fluctuations.
The data come from the analysis of the company WiRE FS and give the picture of the real estate market by province for all types of real estate.
Larnaca is one of the provinces that stands out in the rise in prices for the sale of apartments and rental of holiday homes. According to WiRE, apartment sales values continued to rise for the fourth consecutive quarter (2.5% in the fourth quarter of 2021). On an annual basis, the rental values of holiday homes in Larnaca showed a significant increase after a year of stability (6.3% in the fourth quarter of 2021).
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More specifically, based on the data provided by the company, in the fourth quarter of 2021, compared to the third, the selling prices of apartments and houses on a Cypriot basis increased by 1.4% and 0.5%, respectively, while the prices of commercial real estate by 0.5%, warehouses by 2% and office space by 0.3%. Holiday apartment prices rose by 1%, while holiday home prices fell by 0.1%. On an annual basis, prices increased by 2.2% for apartments and 0.7% for holiday apartments, while they decreased by 0.5% for houses, 3.4% for commercial, 4.5% for warehouses, 2.1% for offices and 3.7% for holiday homes.
On a quarterly basis, rental prices increased by 1% for apartments and 1.7% for houses, while they decreased by 0.6% for commercial real estate, 1.3% for warehouses and 1.4% for offices. .
With regard to holiday apartments and holiday homes, rental prices increased by 1.5% and 2% respectively.
On an annual basis, rents increased by 2% for apartments, 0.4% for houses and 0.9% for holiday apartments. On the contrary, they decreased by 5.5% for commercial, 3.2% for warehouses, 6.7% for offices and 1.4% for holiday homes.
WiRE FS CEO Pavlos Loizou attributes the image of the real estate market to the willingness of banks to grant mortgages but also to the need for investors to look for ways to generate income. On the contrary, the changing landscape around the use of offices and the structure of Cypriot banks (less staff, fewer branches), as well as the transition to e-shopping and the repercussions of new shopping malls / destinations in Nicosia and Larnaca, have a significant impact on purchase of offices and commercial real estate.
