Both selling prices and rents of holiday homes on the island are at their highest point in the last eight years, with the sector finally shaking off the impacts of the COVID-19 pandemic.
It is noted that both apartment and house rents used for vacations are at their highest point since 2016, with prices more than doubling in Limassol.
According to data from Danos International Property Consultants and Valuers, rent increases reach 80% (for holiday apartments) and 60% (for holiday homes) nationwide compared to 2016.
Regarding selling prices, increases range from 40% for apartments and 20% for houses. Rental and sale prices of holiday apartments and homes had seen significant increases from 2016 to 2019, only to plummet in 2020 with the arrival of the pandemic in Cyprus.
Kyriacos Kiliaris, Chief Marketing Officer of Danos International Property Consultants and Valuers, states that since 2022, they have been on the rise again, reaching record levels today.
Larnaca holds the lead in rental increases for holiday homes, with rents rising by 74% since 2016 and 41% since 2019.
It should be noted, he adds, that many of these homes are also offered as permanent residences.
Currently, holiday apartment and home rents range between €25 and €30 per square meter, up from €18 to €22 in 2019. Prices are always indicative and, of course, subject to characteristics such as age, location, and view offered by each property.
Kiliaris notes that Paphos follows closely in rental rate increases for holiday apartments and homes. Rents in Paphos increased on average by 24.5% compared to 2019, with prices ranging between €25 and €30 per square meter.
Rental prices are lower for secondary properties. Somewhat unexpectedly, one might say, Limassol ranks third in the rate of increase in rents for seaside homes.
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.
Kiliaris notes that holiday homes in Limassol are in demand as permanent residences if they are close to services and commercial areas.
Rents in Famagusta are increasing at a similar rate to Limassol, with rents for holiday homes and apartments increasing by 16% and ranging between €21 and €25 per square meter. These prices refer to high-standard accommodations.
Selling prices
The most expensive holiday homes remain those in Limassol, with prices per square meter costing well over €4,000.
The increase registers a 20% increase compared to 2019, indicating increased interest in purchasing rather than renting.
The average increase since 2016 is estimated at 30%. 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.
On the other hand, selling prices for holiday apartments and homes in Paphos have seen a slight increase, creating room for investment opportunities compared to the rate of rental increase. In Paphos, the cost of purchasing a holiday home is estimated to have increased by 15% compared to 2019, with prices averaging around €3,000.
