On Tuesday 16th July, the Central Bank of Cyprus published the Residential Property Price Index (HRC) for the first quarter of 2024.
According to the fresh data, house prices in the island nation rose 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 fourth quarter of 2023, when the index rose by 2.3 per cent, the first quarter of 2024 saw an increase of 1.6 per cent. At the same time, on an annualised basis, the HRC increased by 7.8%, compared to 8.3% in the corresponding quarter of 2023. It is worth noting that this trend affected both apartments and houses in Cyprus.
Thus, apartment prices increased by 3.4% compared to the fourth quarter of 2023. And house prices increased by 0.8 per cent, continuing the trend of the previous quarter. On a year-on-year basis, flat prices increased by 13.9 per cent in the quarter under review, while house prices rose by 4.7 per cent.
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 during the first quarter of 2002, house prices rose in all cities in Cyprus.
In particular, the increase was 0.2 per cent in Nicosia, 1.5 per cent in Limassol, 2.2 per cent in Larnaca, 3.1 per cent in Paphos and 1.4 per cent in the free areas of Famagusta.
On an annual basis, the house price index rose by 4% in Nicosia, 9.2% in Limassol, 10.7% in Larnaca, 11.2% in Paphos and 11.8% in the free areas of Famagusta.
On a quarterly basis, house prices rose in all Cypriot cities except Nicosia (0%): Limassol (+0.3%), Larnaca (+1.1%), Paphos (+3.3%) and the free areas of Famagusta (+2.6%). On an annual basis, house prices rose in all provinces: Paphos (+7.1%), Nicosia (+3.6%), Limassol (+3.9%), Larnaca (+6.6%) and the Free Districts of Famagusta (10.6%).
On a quarterly basis, however, apartment prices rose by 4% in Nicosia, 9.2% in Limassol, 10.7% in Larnaca, 11.2% in Paphos and 11.8% in the free areas of Famagusta. On a yearly basis, a similar trend was observed. Prices rose by 5.1% in Nicosia, 16.5% in Limassol, 18.1% in Larnaca, 21.4% in Paphos and 16.5% in the free areas of Famagusta.