On Thursday, April 4, the Cyprus Statistical Service published the Residential Property Price Index (HPI) for the fourth quarter of 2023.
According to the agency's latest data, it reached 109.95 units (2015 base = 100), up 0.6% quarter-on-quarter and 1.6% year-on-year.
Statistics Cyprus emphasized that "the acceleration in house price growth in the country is mainly due to an increase in construction costs, which is reflected in the cost of apartments and houses." By the way, the Index was set at 110.31 units in the first quarter of 2023 and 110.15 units in the second quarter of the same year.
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 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.
The report adds that investors are increasingly considering lower-priced real estate options.
The agency also notes that the Cyprus House Price Index continues to record an upward trend driven by the purchase of apartments. The fact that the wave of rising prices of basic building materials increases the price of real estate regardless of demand, makes it necessary to constantly monitor the market to see if it does not affect demand.
Recall that earlier statistics on housing prices were published by the Central Bank of Cyprus. According to the main financial institution of the island state, the cost of housing increased both on a quarterly and annual basis.
In particular, the growth amounted to 2.2% compared to 1.5% in the previous quarter. At the same time, on an annualized basis, the 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 house prices - by 1.4%, continuing the trend of the previous quarter. On an annualized basis, apartment prices increased 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 increase in the cost of both apartments and houses".
