The market for holiday homes in Cyprus is experiencing a remarkable surge, with both sale prices and rental rates hitting their highest levels in eight years. This rebound, post-COVID-19 pandemic, underscores the growing demand for vacation properties on the island. At Kora Real Estates, we offer comprehensive insights into these market trends and can help you navigate your property investment in Cyprus.

Soaring Rental Rates

Rental rates for holiday apartments and homes in Cyprus have reached unprecedented heights since 2016. Data from Danos International Property Consultants and Valuers reveals significant increases:

  • Limassol: Rental rates have more than doubled. Current prices range from €23 to €70 per square metre, up from €20 to €60 in 2019. Limassol remains the priciest area, with holiday homes often used as permanent residences due to their proximity to amenities and business hubs.
  • Larnaca: Leading in rental rate increases, Larnaca has seen a 74% surge since 2016 and a 41% rise since 2019. Current rates range from €25 to €30 per square metre.
  • Paphos: Rental rates have increased by 24.5% since 2019, with prices between €25 and €30 per square metre.
  • Famagusta: Rates have climbed by 16%, with high-standard property rates ranging from €21 to €25 per square metre.

Increasing Sale Prices

The sale prices for holiday homes in Cyprus have also seen substantial growth:

  • Limassol: The most expensive market, with rates exceeding €4,000 per square metre. This marks a 20% increase since 2019 and a 30% increase since 2016.
  • Famagusta: Sale prices have risen by about 20% since 2019, averaging between €2,760 and €3,000 per square metre.
  • Larnaca: Prices range from €2,300 to €2,900 per square metre, reflecting a 7% increase since 2019.
  • Paphos: Sale prices have increased by approximately 15% since 2019, averaging around €3,000 per square metre. This area offers some investment opportunities due to the lower rise in rent prices.

Market Dynamics and Insights

From 2016 to 2019, rental and purchase prices for holiday apartments and homes in Cyprus steadily climbed. However, the COVID-19 pandemic in 2020 caused a temporary dip as the island, like the rest of the world, went into lockdown. Since 2022, prices have been on the rise again, reaching record highs this year.

Understanding the Demand

The high demand for holiday homes in Cyprus is driven by several factors:

  • Limited Supply: Many holiday homes double as permanent residences due to a shortage of housing properties.
  • Desirable Locations: Areas like Limassol, Larnaca, and Paphos are highly sought after for their amenities, coastal views, and vibrant lifestyles.
  • Investment Potential: The strong rental yields and the appreciation in property values make Cyprus an attractive destination for property investors.

Contact Kora Real Estates

Navigating the dynamic property market in Cyprus can be challenging. At Kora Real Estates, we provide expert guidance and personalised services to help you find the perfect holiday home or investment property. Our team is well-versed in the local market trends and committed to ensuring a smooth and successful transaction for our clients.

Explore our property listings and contact us today to learn more about the opportunities in Cyprus’s thriving real estate market. Let Kora Real Estates be your trusted partner in making your dream of owning a holiday home in Cyprus a reality.