The Central Bank of Cyprus (CBC) reports that residential property price growth continued to slow in the fourth quarter of 2024, with the main reasons being the high cost of building materials and high borrowing costs.
According to CBC’s quarterly results, in the fourth quarter of 2024, year-on-year, the CBC residential property price indices (houses and apartments) recorded a slowdown in growth, with the apartment price index recording a more significant slowdown than the house price index.
Various indices show that the real estate sector appears to be recording a general slowdown in its upward trajectory, reflected in a slowdown in the growth of sales documents coupled with an increase in supply (the increased availability of residential properties for rent and sale).
The high cost of building materials and interest rates on loans, which are significantly higher than in the previous five years, are restraining the expansion of activity in the real estate sector.
According to CBC, in the fourth quarter of 2024, an acceleration in price growth was recorded only in Paphos (13.4%), while a slowdown was recorded in Nicosia, Limassol, Larnaca and Famagusta (0.7%, 4.4%, 6.5% and 9.2% respectively).
The impact of economic factors on the real estate market varies depending on the area:
- Acceleration of growth in prices for houses (14.7%) and apartments (12.1%).
- Nicosia: House prices fell (-0.4%) and apartment prices slowed (2.6%).
- Limassol . Slowdown in house (5.1%) and apartment (5.5%) price growth.
- Larnaca . Steady growth in prices for houses (6.1%) and apartments (8.7%).
- Famagusta : Slowdown in price growth for houses (7.8%) and apartments (14.2%).
The residential property price indices in Cyprus are prepared by the Real Estate Department of the Central Bank of Cyprus ( Real Estate Unit (REU)), in cooperation with members of the Cyprus Banking Association ( Bank of Cyprus , Hellenic Bank , Alpha Bank , National Bank of Greece , Cyprus Development Bank , Societe General , Astro Bank , Ancoria Bank and Eurobank ) and KEDIPES.
The indices are based on property valuation data collected since 2006 by contracted banks who obtain relevant information from independent property valuers in connection with mortgage transactions such as home loans, mortgage refinancing and mortgage collateral. The data represents a representative cross-section of the Cyprus residential property market, including the areas of Nicosia, Limassol , Larnaca , Paphos and Famagusta .
