According to the Central Bank's study on the dynamics of prices for houses and apartments, the real estate sector in the country continues to actively recover from the coronavirus pandemic.
This is evidenced by the rise in housing prices. In the first quarter of 2021, the price for real estate in Cyprus increased by 0.9% compared to the same period last year. At the same time, the cost of apartments increased by 2.5%, and houses - by 0.2%
If you look at the cities of the island, then, in the first quarter of 2021, housing prices rose the most in Limassol, Larnaca and the free areas of Famagusta. Real estate in Paphos, on the contrary, fell in value, and prices stabilized in Nicosia.
Prices in Limassol increased by 1.5%, in Larnaca - by 0.6% and in the free areas of Famagusta - by 0.1%. In contrast, Paphos saw a 0.6% decline in prices.
If you look at the annual changes in the indicators of housing prices in the cities of Cyprus, then the growth was recorded in all regions except Paphos.
Housing prices in Limassol rose by 2.8%, in Nicosia - by 0.2%, in the free areas of Famagusta - by 0.3%, in Larnaca - by 0.7%, in Paphos - by 2%.
The value of houses in the first quarter of 2021 decreased in all cities of Cyprus, except for Limassol and Larnaca. Thus, in Nicosia, Paphos and the free areas of Famagusta, house prices fell by 0.4%, 1.5% and 0.6%, respectively. And in Limassol and Larnaca - they grew by 1.6% and 0.3%.
On an annualized basis, house prices fell in all cities of Cyprus, except for Limassol, where an increase of 2.7% was recorded. Housing prices in Nicosia decreased by 0.9%, in Larnaca - by 0.8%, and in Paphos - by 1.6%, in the free areas of Famagusta - by 0.1%.
As for apartment prices, they continued the upward trend in all cities of Cyprus for the fourth quarter in a row.
Thus, the cost of apartments in the first quarter of 2021 in Nicosia increased by 0.5%, in Limassol - by 1.1%, in Larnaca - by 1.9%, in Paphos - by 2.2% and in the free areas of Famagusta - by 3%.
On an annualized basis, the dynamics of apartment prices by city of Cyprus is as follows:
- in Nicosia, prices increased by 2.2%,
- in the free areas of Famagusta - by 3.2%,
- in Limassol - by 3.4%,
- in Larnaca - by 6%,
- in Paphos, prices fell 3%.
According to experts from the Central Bank, the rise in apartment prices in Larnaca may be caused by the demand of foreign investors as part of the program for obtaining permanent residence in Cyprus.
It is worth noting that government subsidies on mortgage interest rates have largely contributed to the recovery in demand from Cypriot buyers for real estate in the country. To some extent, this offset the decline in foreign buyer interest, which is mainly due to the coronavirus pandemic.
You can find profitable options for buying real estate in Cyprus on the DOM Portal. The website also has a large number of rental properties - both residential and commercial. Choose and contact professionals who will help you make the right choice!
Photos: DOM LiVE