17.07.2024
The Cyprus residential property price index decreased in the first quarter of 2024, with the Central Bank of Cyprus (CBC) warning of a potential further decline in the coming quarters due to a drop in the number of real estate sales contracts, which has not yet been reflected in the current data. The slowdown in the index is attributed to a normalization of demand for real estate, an increase in supply, rising interest rates, and a slight decrease in the cost of building materials, which nevertheless remain high. Compared to the previous quarter, the index (for both apartments and houses) increased by 1.6% after rising by 2.3% in the previous quarter. “This growth in the index in the first quarter was driven by a 0.8% increase in house prices and a 3.4% increase in apartment prices,” the Central Bank of Cyprus stated. On an annual basis, the index increased by 7.8% compared to an 8.3% increase in the fourth quarter of 2023, with apartment prices rising by 13.9% and house prices by 4.7%.
Price Changes by Region
House prices in the first quarter of 2024 rose in Paphos and Famagusta by 3.1% and 4.4% respectively, while in Nicosia, Limassol, and Larnaca, the price growth slowed to 0.2%, 1.5%, and 2.2% respectively. Compared to the first quarter of 2023, the index in Paphos and Famagusta increased by 11.2% and 11.8%, whereas in Nicosia, Limassol, and Larnaca, it slowed to 4%, 9.2%, and 10.7% respectively. Quarterly house prices in Paphos and Famagusta rose by 3.3% and 2.6% respectively, while in Limassol, Larnaca, and Nicosia, growth slowed to 0.3%, 1.1%, and 0%. Apartment prices on a quarterly basis also showed a slower growth in all regions except Famagusta. In Nicosia, apartment prices increased by 0.8%, in Limassol by 3.7%, in Larnaca by 4.3%, in Paphos by 3.5%, and in Famagusta, growth was recorded at 10.7%. Compared to the first quarter of the previous year, apartment prices increased in Limassol, Larnaca, and Famagusta by 16.5%, 18.1%, and 16.5% respectively, while in Nicosia and Paphos, growth slowed to 5.1% and 21.4% respectively.
