04.08.2024
The Central Bank of Cyprus has reported a slowdown in the Residential Property Price Index growth, both on a quarterly and annual basis. This deceleration is mainly due to fluctuations in house prices, while apartment prices continue to increase.
At the same time, the supply of residential properties, both for rent and sale, has significantly risen, particularly in Limassol. This increase in housing availability, combined with the ongoing decline in construction costs, is expected to ease the upward pressure on prices.
Residential Property Price Index Dynamics
In the first quarter of 2024, the index increased by 1.6% compared to a 2.3% rise in the previous quarter. The 1.6% growth was driven by a 0.8% increase in house prices and a 3.4% rise in apartment prices.
On an annual basis, the index rose by 7.8% in the first quarter of 2024, compared to an 8.3% increase in the fourth quarter of 2023.
House Price Dynamics
On a quarterly basis, house prices in the first quarter of 2024 saw significant increases in Paphos and Famagusta, with rises of 3.1% and 4.4% respectively. Meanwhile, in Nicosia, Limassol, and Larnaca, the growth was more modest at 0.2%, 1.5%, and 2.2% respectively.
On an annual basis, house prices in Paphos and Famagusta increased by 11.2% and 11.8%, while the growth in Nicosia slowed to 4%, in Limassol to 9.2%, and in Larnaca to 10.7%.
Apartment Price Dynamics
On a quarterly basis, apartment price growth slowed across all regions except for Famagusta, where prices increased by 10.7%. In other regions like Nicosia, Limassol, Larnaca, and Paphos, the growth was 0.8%, 3.7%, 4.3%, and 3.5% respectively.
On an annual basis, the growth in apartment prices was most significant in Paphos (21.4%), Larnaca (18.1%), and in Limassol and Famagusta (both 16.5%). In Nicosia, the increase was more moderate, at 5.1%.
