Central Bank of Cyprus: Property Price Index Slows Down

Центробанк Кипра: индекс цен на недвижимость замедлился
19 October 2021 DOM LiVE

In the second quarter of 2021, there was an overall slowdown in the growth of the House Price Index (HRC) in Cyprus, both on a quarterly and on an annual basis.

This was the result of a slight decrease in house prices and an increase in apartment prices. This was announced on Monday, October 18, by the Central Bank of Cyprus in its new report on changes in the real estate market.

The growth was only 0.3%, compared to an increase of 0.5% in the first quarter of 2021. At the same time, the HRC recorded an annualized growth of 0.2% compared to 0.9% in the same quarter of 2020.

As you may know, the Cyprus Housing 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 Ministry of the Interior. The data covers all areas that are under the control of the government of the Republic of Cyprus.

As for the categories of real estate, in the second quarter of 2021, house prices in Cyprus decreased both qoq and yoy by 0.3% and 1%, respectively. In contrast, apartment prices rose 1.3% qoq and 3% yoy.

This trend prevails in all cities in Cyprus, but in Limassol, where house prices are also rising, and Paphos, where apartment prices are falling every year.

The Central Bank of Cyprus noted that “the rise in apartment prices reflects, among other things, the continuing excitement for the purchase of apartments by local buyers and investors, who continue to prefer apartments over houses in most regions of Cyprus”.

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 at a fairly high level. The domestic sector and local buyers are expected to be the main driving force for the real estate sector in 2021.

According to the Central Bank, “Cypriots in most cases invest in small houses and apartments, thereby keeping housing prices in the country at a high level. This is partly due to the fact that they prefer to invest their savings in real estate for their own use, or for investment. "

At the same time, the Central Bank stressed that the demand for real estate from foreign investors, which is supported by the permanent residence program, shows signs of stabilization in the Cyprus housing market.

Центробанк Кипра: индекс цен на недвижимость замедлился

You can find profitable options for buying real estate in Cyprus on the DOM Real Estate Portal. The website also has a large number of rental properties - from residential to commercial real estate. Choose and contact professionals who will help you make the right choice!
Source: stockwatch.com.cy
Photos: pixabay.com
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