Holiday home rentals and sales are booming in Cyprus
May 13, 2024
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Over the past eight years, short-term rental rates for resort properties on the island have soared by 60-80%, while sales prices have risen by 30%.
What has happened
According to data from Danos International Property Consultants and Valuers, holiday prices and rental rates for vacation homes in Cyprus are at their highest level in the last eight years. This is due to the fact that the sector has finally recovered from the effects of the COVID-19 pandemic.
Details
Compared to 2016, rent increases reach 80% (for holiday apartments) and 60% (for holiday homes) nationwide.
Regarding selling prices, increases range from 40% for apartments and 20% for houses. Rental and sales prices for resort properties experienced significant growth from 2016 to 2019 but sharply declined in 2020 with the onset of the pandemic in Cyprus.
Kyriacos Kiliaris, Chief Marketing Officer of Danos International Property Consultants and Valuers, asserts that they began to rise again from 2022, reaching record levels today.
Rentals
Currently, holiday apartment and home rents range between €25 and €30 per square meter, up from €18 to €22 in 2019. These prices are indicative and apply to high-end properties. They depend on such factors as the age of the property, location, and type.
Larnaca is at the forefront of rental hikes for vacation properties, with rental rates climbing by 74% since 2016 and by 41% since 2019.
The rent in Paphos increased by an average of 24.5% compared to 2019, with prices ranging from €25 to €30 per square meter.
Rents in Limassol have increased by 16.2% compared to 2019, but the gap between holiday homes and other provinces is narrowing. Rents currently range from €23 to €70 per square meter, compared to €20 to €60 in 2019. The experts note that holiday homes in Limassol are in demand as permanent residences if they are close to services and commercial areas.
The rental rates in Famagusta are increasing at the same pace as in Limassol: the rates for holiday homes and apartments have risen by 16% since 2019 and range from €21 to €25 per square meter.
Selling prices
Limassol continues to host the priciest holiday homes, with prices per square meter exceeding €4,000. The rise reflects a 20% increase compared to 2019, suggesting a heightened preference for purchasing rather than renting.
In the Famagusta province, selling prices have also increased by about 20% since 2019, ranging between €2,760 and €3,000 per square meter on average.
Larnaca follows in terms of selling prices for holiday homes and apartments, with a 7% increase compared to 2019, with prices ranging from about €2,300 to €2,900 per square meter.
Sales prices of apartments and holiday homes in Paphos have increased slightly, creating room for investment opportunities compared to the rate of rental growth. In Paphos, the cost of buying a holiday home is estimated to have increased by 15% compared to 2019, with the average price being around €3,000.
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