On Wednesday, January 11, the Central Bank of Cyprus released the Residential Property Price Index (HRC) for the third quarter of 2023.
According to the fresh data, the cost of housing in the island nation increased on both a quarterly and annual basis.
Specifically, the increase was 2.2% compared to 1.5% in the previous quarter. At the same time, on an annualized basis, HRC increased by 7.9% compared to 7.4% in the corresponding quarter of 2022. It is worth noting that this trend affected both apartments and houses in Cyprus.
Thus, apartment prices increased by 3.6% compared to the first quarter. And the prices of houses - by 1.4%, continuing the trend of the previous quarter. On a year-on-year basis, apartment prices rose by 11.5% during the quarter under review, while house prices increased by 7.6%.
The Central Bank of Cyprus emphasized that "the acceleration of house price growth in the country is mainly due to an increase in demand and a decrease in supply in the market, which is reflected in the growth in the cost of both apartments and houses".
Recall that 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 Department of Lands and Surveys of the Home Office. The data covers all areas that are under the control of the Government of the Republic of Cyprus.
It is noteworthy that in the third quarter of 2023, real estate prices increased in all cities in Cyprus.
In particular, the increase amounted to 0.7% in Nicosia, 2.9% in Limassol, 2.8% in Larnaca, 2.4% in Paphos 2.8% in the free areas of Famagusta.
On an annualized basis, the Property Price Index rose by 3.9% in Nicosia, 10.1% in Limassol, 10.5% in Larnaca, 7.6% in Paphos and 6.4% in the free areas of Famagusta.
In quarterly terms, house prices increased in all cities of Cyprus: Nicosia (+0.3%), Limassol (+1.4%), Larnaca (+2.5%), Paphos (+1.1%), free areas of Famagusta (+4.3%). On a year-on-year basis, house prices also rose across the island. In Nicosia, the value increased by 3.8%, in Limassol by 5.1%, in Larnaca by 8.3%, in Paphos by 3.1% and in the free neighborhoods of Famagusta by 9.5%.
In turn, in quarterly terms, apartment prices rose by 1.5% in Nicosia, 4% in Limassol, 2.9% in Larnaca and 5.2% in Paphos. But fell by 1.7% in free areas of Famagusta. On a year-on-year basis, a similar trend was recorded. Prices increased by 4.6% in Nicosia, 14.9% in Limassol, 13.4% in Larnaca, 18.5% in Paphos and fell by 1.8% in the free neighborhoods of Famagusta.