In the second quarter of 2021, a slowdown in Cyprus residential property price indices was recorded due to a slight decrease in housing prices and an increase in the cost of apartments.
The Residential Property Price Index (RPPI) Q2 report published by the Central Bank of Cyprus recorded a quarterly increase of 0.3% compared to 0.5% in Q1 2021.
Recorded growth of 0.2% compared to 0.9% in the previous quarter on an annualized basis.
“House prices present a different picture from apartment prices, with homes recording a decline compared to apartment prices, which recorded an increase,” the report notes.
House prices fell both quarterly and year-on-year to 0.3% and 1%, respectively, according to the Central Bank.
In contrast, apartment prices rose 1.3% QoQ and 3% YoY.
This trend was observed in all areas except Limassol, which recorded an increase in house prices, while Paphos saw an annual fall in apartment prices.
The Central Bank noted that the increase in the cost of apartments shows continued demand from local buyers and investors for apartments compared to houses in most areas.
The report stated that Cypriots are investing more in small houses and apartments. The reason was that the savings are directed to the purchase of real estate either as an investment or for living.
Moreover, the increase in the cost of building materials has played a key role in maintaining the price level.
According to the sale documents, the Central Bank said investor demand for property has stabilized thanks to investment promotion and a government program for foreigners to obtain permanent residence in Cyprus.