According to Eurostat, house prices in Cyprus are rising, but are increasing at the slowest annual rate in Europe.
The Cyprus House Price Index for the third quarter of 2021 increased by 2.4% every quarter and by 2.2% compared to the same quarter in 2020. In the second quarter of 2021, prices recorded an annual decline of 4.9%, while quarterly growth rose to 1.2%.
The House Price Index is a quarterly index that measures the change in the average price of housing units. The index covers all types of housing units, new and existing. The cost of the land is already included in the price. The data used in the calculation of the index is collected from the Land Registry and the Ministry of the Interior.
Housing prices in Europe are also on the rise. According to the data, in the third quarter of 2021, house prices rose by 8.8% in the euro area and by 9.2% in the EU compared to the same quarter a year earlier. It was the biggest annual price hike recorded in the EU since 2007. In the second quarter of 2021, house prices rose by 6.8% and 7.4%, respectively.
Among the EU Member States, the Czech Republic (+22%), Lithuania (+18.9%), Estonia (+17.3%) and the Netherlands (+16.8%) recorded the highest annual price increases. The lowest annual growth was in Cyprus (+2.2%), Italy and Spain (+4.2% each).
The house price index in Cyprus in the third quarter of 2021 reached 106.55 units against 104.07 units in the second quarter.
Compared to the second quarter of 2021, the TIN increased by 2.4%, while the figure for the corresponding quarter of 2020 increased by 2.2%.