The Cyprus Statistical Service has released the House Price Index (HPI) for the fourth quarter of 2024.
According to the authority's fresh data, it reached 112.47 points (2015 base = 100), a decrease of 1% compared to the third quarter of 2024.
Statistics Cyprus highlighted that this is the largest quarterly decline since the fourth quarter of 2022. However, it is worth noting that on a year-on-year basis, the index still increased by 2.3%.
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.
The report adds that investors are increasingly considering lower-cost property options due to the closure of the Citizenship by Investment scheme, the tightening of the criteria for obtaining a residence permit, and the removal of government subsidies on loan interest rates.
The agency also adds that the house price index in Cyprus is on a downward trend, due to a change in the preferences of buyers, who are increasingly investing in apartments rather than houses. However, the fact that the wave of rising prices of basic building materials is pushing up property prices regardless of demand, makes it necessary to constantly monitor the market to see if this will affect demand.
Meanwhile, Eurostat has also released new data on house price growth in the European Union.
According to the agency's report, property values in Cyprus increased by 2.3% in the fourth quarter of 2024 compared to the same period last year, but decreased by 1% compared to the third quarter of 2023. The top three countries where property prices are rising fastest are: Hungary (+234%), Estonia (+228%) and Lithuania (187%).