On Friday 5 July, the Cyprus Statistical Service released the House Price Index (HPI) for the first quarter of 2024.
According to the agency's new data, it reached 111.53 points (2015 base = 100), an increase of 1.6 per cent compared to the fourth quarter of 2023 and 1.1 per cent year-on-year.
Statistics Cyprus highlighted that "the increase in housing prices in the country between January and March was mainly due to an increase in construction costs, which is reflected in the cost of apartments and houses". The agency noted that this is the ninth consecutive quarter in which the index has risen on a year-on-year basis.
Recall that 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 programme, the tightening of the criteria for obtaining a residence permit and the phasing out of government subsidies on loan interest rates.
The agency notes that the house price index in Cyprus continues to show an upward trend, driven by the purchase of apartments. The fact that the wave of rising prices of basic construction materials is pushing up property prices regardless of demand, requires continuous monitoring of the market to see if it affects demand.
Meanwhile, Eurostat has also released new data on house price growth in the European Union.
As it turns out, Cyprus is among the top three countries where property prices are rising fastest:
- 1st place - Denmark (+2.5%),
- 2nd place - Hungary (+2.2%),
- 3rd place - Croatia and Cyprus (+2%).