After the Central Bank of Cyprus, the data on changes in real estate prices were published by the Statistical Service.
According to the agency, the Residential Property Price Index (HPI) in the third quarter of 2023 reached 110.65 units.
Compared to the second quarter of 2023, this index increased by 3.6%, compared to the first quarter of 2023 - by 6.1%, and on an annualized basis - recorded an increase of 0.6%.
The House Price Index is a quarterly index that measures the change in the average price of a housing unit. It covers all types of housing units, both new construction and the secondary market. The cost of land is included in the price. The source of data for the index is the Land Registry Department. The data covers all areas under the control of the Government of the Republic of Cyprus. The 2015 figures are taken as 100 units.
The Cyprus Statistical Service emphasized that "the increase in house prices in the country is mainly due to rising construction costs and growing demand for real estate, which is reflected in the cost of apartments and houses." The office also noted that this is the sixth consecutive quarter in which the Index has increased year-on-year. The report adds that investors are increasingly considering lower-priced properties due to the closure of the Citizenship for Investment program, the tightening of the criteria for obtaining a residence permit, as well as the winding down of government subsidies on loan interest rates.
According to the Central Bank's data, property prices in Cyprus are also rising.
The Central Bank of Cyprus house price index recorded both quarterly and annual growth in the third quarter of 2023. The quarterly growth of the index amounted to 2.2% (1.5% in the previous quarter). On an annualized basis, house prices on the island increased by 7.9% (7.4% in the second quarter of 2023).