The Cyprus Residential Property Price Index (HRC) rose again in the fourth quarter of 2020, according to data from the Cypriot Central Bank released on Friday April 9th.
The increase was 4.7% compared with a 0.3% fall in the third quarter of 2020. According to a statement from the Central Bank, in the fourth quarter of 2020, HRC was 109.10 points.
At the same time, HRC recorded 2.4% year-on-year growth over the corresponding quarter of 2019.
The Cyprus House Price Index (HPI) is a quarterly index that measures the change in average residential property prices. It covers all types of residential properties, both new and secondary. The source of the data used to set the indices is the Lands and Survey Department of the Ministry of the Interior. The data covers all areas that are under the control of the government of the Republic of Cyprus.
It is worth noting that the consequences of the coronavirus pandemic and the reduction in economic activity will inevitably affect the real estate market and construction activities, which ultimately affects the adjustment of housing prices.
At the same time, it should be mentioned that the demand for real estate in Cyprus from local buyers, thanks to low interest rates on loans and the government's plan to partially subsidize interest rates on mortgages, is still quite high. The domestic sector and local buyers are expected to be the main driving force for the real estate sector in 2021.
It is noteworthy that the most popular among buyers throughout 2020 were residential properties in the price range from 100 thousand euros to 300 thousand euros.
So they accounted for the largest number of transactions, the total amount of which amounted to 790 million euros, or 26% of the total number of sales.
In addition, in 2020, there was a significant change in the geographical distribution of housing transactions, ranging from € 100,000 to € 300,000.
Real estate sales in the range from 100 thousand euros to 300 thousand euros in the cities of Cyprus in 2020:
- Nicosia - 1,582 sales contracts (1507 in 2019; or + 5%);
- Limassol - 1,239 sales contracts (1,582 in 2019; or -22%);
- Larnaca - 914 sales contracts (835 in 2019; or -9%);
- Paphos - 713 sales contracts (1,132 in 2019; or -37%);
- Famagusta - 263 sales contracts (239 in 2019; or + 10%).
Nevertheless, in general, transactions with housing in the price range from 100 thousand euros to 300 thousand euros decreased by 14%. During the year, 4632 transactions with similar properties were concluded in Cyprus, compared to 5374 in 2019.