08.06.2023
Rising construction costs and growing demand have led to a continued increase in house prices in the fourth quarter of 2022. According to the Central Bank of Cyprus (CBC), the Residential Property Price Index (RPPI) rose by 6.6% year on year, compared to a 6.3% increase recorded in the previous quarter of 2022. Apartment prices increased by 7.7% in the fourth quarter of 2022, while house prices increased by 5.6%.
By region, house prices in Paphos posted an impressive annual growth of 10.4%, while apartment prices rose in Limassol (9.3%), Larnaca (9.4%) and Paphos (8.6%).
The CBC notes that “the increase in key interest rates of the ECB and the corresponding decrease in demand for mortgages have not yet had a significant impact on demand for real estate.”
In the fourth quarter of 2022, house prices rose in all districts except for Famagusta. There was a slight increase of 0.3% in Nicosia, 2.5% in Limassol, 2% in Larnaca, 2% in Paphos, and a slight decrease of 0.8% in Famagusta.
According to the CBC, on an annualized basis, in all districts, an increase in housing price indices was noted. In Nicosia, house prices rose by 3.5%, in Limassol – by 8.7%, in Larnaca – by 5.1%, in Paphos – by 9.8 %, and in Famagusta – by 4.4%.
On an annualized basis, the rate of growth in housing prices in Limassol, Larnaca and Paphos has accelerated, possibly due to demand driven by headquarters policies. At the same time, growth slowed down in Nicosia and Famagusta.
House prices rose quarterly in all districts, according to the CBC. In Nicosia they increased by 0.3%, in Limassol – by 1.2%, in Larnaca – by 1.7%, in Paphos – by 2.2 %, and in Famagusta slightly – by 0.1%.
Year-on-year, house prices also rose in all areas. House prices in Nicosia, Limassol, Larnaca, Paphos and Famagusta rose by 2.9%, 7.1%, 3.3%, 10.4% and 4.2% respectively.
Apartment prices also increased quarterly in all areas except for Famagusta. In Nicosia they slightly increased by 0.2%, in Limassol – by 3.6%, in Larnaca – by 2.3%, in Paphos – by 1.4 %, and in Famagusta they decreased by 3.7%.
Year-on-year, apartment prices continued to rise in all boroughs for the sixth consecutive quarter. In the fourth quarter of 2022, compared to the corresponding quarter of 2021, prices in Nicosia increased by 4.3%, in Limassol – by 9.3%, in Larnaca – by 9.4%, in Paphos – by 8.6% , and in Famagusta – by 5.1%.
