Surge in Holiday Home Market Across Cyprus
The real estate market in Cyprus is witnessing a remarkable upswing, particularly in the holiday home sector, which has reached its highest performance levels since 2016. The industry has successfully rebounded from the downturn caused by the COVID-19 pandemic, with both rental and selling prices of vacation properties soaring.
In a striking development, rental prices for holiday homes in Larnaca have surged by an astonishing 74% since 2016, marking the most significant rental price increase on the island. This spike is even more pronounced when considering the 41% rise since 2019. Kyriakos Koiliaris, Chief Marketing Officer at Danos International Property Consultants and Valuers, highlights that these homes are increasingly being considered for permanent residence as well.
Nationwide, holiday apartments have seen rent hikes of up to 80%, while holiday homes have experienced a 60% increase compared to six years ago. The current rental rates for these properties are estimated to be between €25 and €30 per square meter, a notable jump from the €18 to €22 range seen in 2019. Koiliaris points out that factors like age, location, and view play crucial roles in determining these prices.
Following Larnaca, Paphos has also witnessed a substantial rise in rental rates for holiday accommodations, with an average increase of 24.5% compared to 2019. Limassol, on the other hand, ranks third with a 16.2% increase in rents for seaside homes since 2019. Despite this, selling prices in Limassol remain the highest, exceeding €4,000 per square meter, reflecting a strong preference for purchasing over renting in this region.
The trend extends to Famagusta as well, where rents have climbed by 16%, aligning closely with the increases seen in Limassol. However, it’s worth noting that these figures pertain to high-standard accommodations.
When it comes to selling prices, Limassol leads the pack with the costliest holiday homes on the island. The average selling price has risen by about 30% since 2016, with a 20% uptick since 2019 alone. Famagusta and Larnaca are also experiencing growth in selling prices for holiday properties, while Paphos presents potential investment opportunities due to a more modest increase in purchase costs relative to rental rates.
Overall, holiday home selling prices and rents are peaking across Cyprus, signaling a robust recovery and renewed investor confidence in the island’s real estate market.
