On Wednesday 12th March the Central Bank of Cyprus published the Residential Property Price Index (HRC) for the third quarter of 2024.
According to the fresh data, house prices in the island nation increased on both a quarterly and annual basis. However, there was a slight decrease in the rate of increase compared to the previous quarter.
Compared with the second quarter of 2024, the index rose by 0.9%. At the same time, on an annual basis, HRC increased by 6.5%, compared to 8% in the corresponding quarter of 2023. It is worth noting that this trend affected both flats and houses in Cyprus.
Thus, flat prices increased by 0.6% compared to the second quarter of 2024, while house prices increased by 1.2%. On a year-on-year basis, flat prices rose by 8.8 per cent in the quarter under review, while house prices increased by 6%.
According to the Central Bank, lower demand for property from foreign buyers and high mortgage interest rates, which dampened demand from local buyers, weakened the upward trend in property prices seen in previous quarters. House prices in Cyprus are still rising, but at a slower pace.
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.
It is worth noting that house prices rose in all cities in Cyprus in the third quarter of 2024.
On a quarterly basis, house prices rose in Limassol (+0.9%), Larnaca (+1.1%), Paphos (+2%), Nicosia (+1%) and the free areas of Famagusta (+3%). On a yearly basis, house prices also rose in all Cypriot cities: by 11.8% in Paphos, 11.1% in the free areas of Famagusta, 7.4% in Limassol, 8.1% in Larnaca and 2.7% in Nicosia.
On a quarterly basis, flat prices rose by 0.6% in Nicosia, 1.3% in Limassol, 1.4% in Larnaca, 2.1% in Paphos and 0.6% in the free areas of Famagusta. On an annual basis, flat prices rose by 3.3% in Nicosia, 10.2% in Limassol, 15.1% in Larnaca, 14.4% in Paphos and 19.2% in the free areas of Famagusta.