The Cyprus Residential Property Price Indices (RPPIs) rose again in the first quarter of 2021, according to data from the Central Bank of Cyprus, which was released on Thursday, 24 June.
The increase was 0.5% compared to a 0.2% fall in the fourth quarter of 2020.
At the same time, the RPPIs recorded an annualized growth of 0.9% compared to 0.8% in the corresponding quarter of 2020.
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 Ministry of the Interior. The data covers all areas that are under the control of the government of the Republic of Cyprus.
As for the categories of real estate, in the first quarter of 2021, house prices increased by 0.2%, and apartment prices by 1.2%. On an annualized basis, house prices rose by 0.2%, while apartment prices rose by 2.5%.
It should be mentioned that the demand for real estate in Cyprus from local buyers, thanks to low interest rates on loans and the government's plan to partially subsidize bank rates, is still at a fairly high level. The domestic sector and local buyers are expected to be the main driving force for the real estate sector in 2021.
According to real estate professionals, there is an increased demand from local buyers in most cities, mainly for apartments and houses of smaller size and value than in the past. This may be due, in particular, to the possibility of using the government scheme to subsidize the interest rate on the first home, or the desire to purchase inexpensive real estate in order to be able to receive passive income in the future. On the other hand, there has been a decline in interest in luxury coastal properties due to the cancellation of KEP.
It is worth noting that the consequences of the coronavirus pandemic and the reduction in economic activity will inevitably affect the real estate market and construction activities, which ultimately affects the adjustment of housing prices.
You can find profitable options for buying real estate in Cyprus on DOM Portal. The website also has a large number of rental properties, both residential and commercial real estate. Choose and contact professionals who will help you make the right choice!
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