On Monday, 26 May, the Central Bank of Cyprus published the Residential Property Price Index (RPPI) for the fourth quarter of 2024.
According to the new data, the cost of housing in the island nation increased slightly both quarterly and annually. However, the rate of increase declined compared to the previous quarter.
Specifically, the overall HRC increased by 0.4% in the fourth quarter of 2024 compared to 0.9% in the third quarter and 4.5% on an annualised basis. This trend affected both flats and houses in Cyprus. Flat prices increased by 0.1%compared to the third quarter of 2024, while house prices rose by 0.5%t. On a year-on-year basis, flat prices rose by 5.5 per cent in the quarter under review, while house prices increased by 4.6%t. The Central Bank noted that this was the lowest growth rate in the previous 10 quarters.
The Cyprus House Price Index (HPI) is a quarterly index that measures changes in the average price of residential properties. It covers all types of residential properties, both new and existing. The Land and Surveys Department of the Home Office provides the data used to set the indices. The data covers all areas under the control of the Government of the Republic of Cyprus.
Examining the data in more detail, property prices increased in almost all cities in Cyprus in the fourth quarter of 2024.
Paphos saw the most significant increase in apartment prices (+13.4%). More moderate price increases were recorded in Nicosia (+0.7%), Limassol (+4.4%), Larnaca (+6.5%) and the free areas of Famagusta (+9.2%).
As for house prices, positive dynamics were recorded in Paphos (+14.7%), Larnaca (+6.1%), Limassol (+5.1%) and the free areas of Famagusta (+7.8%). Only Nicosia (-0.4%) saw negative dynamics.
According to the regulator's assessment, the slowdown in property price growth is likely to continue in the near future. The main reasons for this are an increase in market supply and a decline in interest from foreign buyers. It is also expected that stabilisation or a decline in the cost of construction materials will prevent further growth in house prices.