On Friday 4th October, the Central Bank of Cyprus released the Residential Property Price Index (HRC) for the second quarter of 2024.
According to the fresh data, housing costs in the island nation rose on both a quarterly and annual basis. The HRC reached a level of 112.86 units.
Compared with the previous quarter, the index rose by 1.2 per cent. At the same time, on an annualised basis, it rose by 2.5 per cent. It is worth noting that this development affected both apartments and houses in Cyprus.
The Central Bank of Cyprus emphasised 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 increase in the cost of both apartments and houses'.
As a reminder, 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 property, both new and second hand. The source of the data used to compile the indices is the Land and Surveys Department of the Ministry of the Interior. The data cover all areas under the control of the Government of the Republic of Cyprus.
The report adds that investors are increasingly considering lower cost property options due to the closure of the Citizenship by Investment programme, the tightening of the criteria for obtaining a residence permit and the phasing out of government subsidies on loan interest rates.
The agency notes that the house price index in Cyprus continues to show an upward trend, driven by the purchase of apartments. The fact that the wave of rising prices of basic construction materials is pushing up property prices regardless of demand requires continuous monitoring of the market to ensure that it does not affect demand.