Demand bolsters house prices in Cyprus
Housing prices in Cyprus continued along their upward trajectory in the fourth quarter of 2022, driven by increased construction costs and higher demand. According to the Central Bank of Cyprus (CBC), the Residential Property Price Index (RPPI) recorded a year-on-year increase of 6.6%, surpassing the 6.3% rise observed in the previous quarter in 2022.
Apartment prices rose by a notable 7.7% in the fourth quarter of 2022, while house prices observed growth of 5.6%.
Broken down into districts, Paphos stood out with an impressive annual rise of 10.4% in house prices, while Limassol (9.3%), Larnaca (9.4%), and Paphos (8.6%) registered significant annual growth in apartment prices.
Despite the increase in key European Central Bank interest rates and a subsequent decline in mortgage demand, the CBC noted that real estate demand has not been substantially affected thus far.
Quarterly changes in house prices during the fourth quarter of 2022 showed an increase in all districts except Famagusta. Nicosia saw a marginal increase of 0.3%, Limassol rose by 2.5%, Larnaca and Paphos were up 2%, while Famagusta experienced a slight decrease of 0.8%.
In terms of annual changes, all districts recorded an increase in housing price indices. Nicosia observed a 3.5% rise, Limassol saw an 8.7% increase, Larnaca experienced 5.1% growth, Paphos showed a 9.8% surge, and Famagusta was up 4.4%.
On an annual basis, housing price growth rates in Limassol, Larnaca, and Paphos accelerated, potentially influenced by the headquarters policy. Conversely, Nicosia and Famagusta experienced a slowdown in growth.
Quarterly changes in house prices were positive across all districts, with Nicosia increasing by 0.3%, Limassol by 1.2%, Larnaca by 1.7%, Paphos by 2.2%, and Famagusta marginally by 0.1%.
Similarly, on an annual basis, all districts saw an increase in house prices. Nicosia, Limassol, Larnaca, Paphos and Famagusta recorded growth rates of 2.9%, 7.1%, 3.3%, 10.4%, and 4.2% respectively.
As for apartments, quarterly changes showed an upward trend in all districts except Famagusta. Nicosia saw a marginal increase of 0.2%, Limassol rose by 3.6%, Larnaca was up 2.3%, Paphos saw a rise of 1.4%, while Famagusta observed a decrease of 3.7%.
