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Demand exceeding supply behind rising rentals

April 15, 2019 at 10:29am
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The prevalent trend of rising rents is expected to continue over the next couple of years as real estate potential buyers seem to believe that there is a large stock which is to become available for sale soon at reduced prices, according to Panos Danos, Managing Director of Danos and Associates, which is affiliated with some of the world’s leading real estate consultants including BNP PARIBAS REAL ESTATE.

Danos also said that this is the main reason the market is at a constant uncertainty. As for 2019, he expects a further upward trend in rents since demand far exceeds supply in the real estate sector which is currently confronted with real big challenges.

Such as the reduction of non-performing loans and subsequent disposal of large stock of real estate owned by banking organisations.

Also, the pressure the Cyprus government feels over its citizenship by investment scheme, its housing policy in general and the uncertainty created by Brexit.

Danos believes that the upward trend in property prices will continue to be mild at least for the next two years. Regarding the indicative selling and renting prices per property (land, houses, apartments, commercial property), these are:

Limassol – Selling Prices

Apartments:

Coastal front €4.000/ sq.m to €10,000/sq.m

Centrally located Areas €2,000/sq.m to €4,000/sq.m

Plots of land:

Near coastal front €800/sq.m to €1,200/sq.m

Centrally located Areas €400/sq.m to €800/sq.m

Houses:

Coastal front €4.000/sq.m to €10,000/sq.m

Centrally located Areas €2,000/sq.m to €4,000/sq.m

Commercial Real Estate:

Coastal front €4.000/sq.m to €10,000/sq.m

Central Areas €2,000/sq.m to €4,000/sq.m

Limassol – Rental rates

Apartments:

Coastal front €12/sq.m to €20/sq.m

Central Areas €8/sq.m to €12/sq.m

Commercial Real Estate:

Coastal front €20/sq.m to €80/sq.m

Central Areas €10/sq.m to €30/sq.m

Paphos – Selling Prices:

Apartments:

Coastal front €3000/sq.m to €8000/sq.m

Central Areas €1,500/sq.m to €5,000/sq.m

Plots of land:

Coastal front €500/sq.m to €1,000/sq.m

Central Areas €300/sq.m to €600/sq.m

Houses:

Coastal front €4.000/sq.m to €10,000/sq.m

Central Areas €1,500/sq.m to €5,000/sq.m

Commercial Real Estate:

Coastal front €3.000/sq.m to €8000/sq.m

Central Areas €2,000/sq.m to €6,000/sq.m

Paphos – Rental Prices:

Apartments:

Coastal front €8/sq.m to €16/sq.m

Central Areas €5/sq.m to €10/sq.m

Houses:

Coastal front €10/sq.m to €20/sq.m

Central Areas €6/sq.m to €12/sq.m

Commercial Real Estate:

Coastal front €15/sq.m to €40/sq.m

Central Areas €10/sq.m to €25/sq.m