PROPERTY

Cyprus house prices keep increasing

Cyprus house prices keep increasing

Residential property prices in Cyprus continued to rise in the third quarter of 2021, primarily driven by apartment purchases, according to the Residential Property Price Index released on Friday by the Central Bank of Cyprus (CBC).

The index recorded a quarterly increase of 0.5%, compared to 0.3% in the second quarter of 2021, while on an annual basis it recorded an increase of 1.2%, compared to 0.3% in the corresponding quarter of the previous year.

House prices in the third quarter decreased in many areas, both on a quarterly and annual basis, contrary to the increase in apartment prices.

Specifically, house prices decreased 0.3% on an annual basis, while on a quarterly basis they recorded a small increase of 0.3%, mainly due to increases in Larnaca and Paphos districts. In contrast, apartment prices increased by 1% on a quarterly basis and 4.5% on an annual basis.

According to CBC analysis, households seem to prefer apartments as their main residence due to the new conditions in the market and specifically due to the state subsidization of mortgage interest rates and the rental rate hikes.