The Cyprus Central Bank recorded a slowdown both quarterly and annually in its Residential Property Price Index. The slowdown came from the house price index, while the apartment price index continued to grow.
Regarding the supply of housing supply, its availability for rent and sale has increased, particularly in the Limassol district. This increased housing supply, combined with the continued fall in construction costs on an annual basis, is expected to ease upward price pressures.
Changes in the Residential Property Price Index
On a quarterly basis, the index rose 1.6% in Q1 2024 compared to the 2.3% increase in the previous quarter. The rise of 1.6% resulted from a 0.8% rise in house prices and a 3.4% rise in apartment prices.
On an annual basis, the index rose 7.8% in Q1 2024, compared to an 8.3% increase in the fourth quarter of 2023.
The chart below is derived from the MS-Excel relevant quarterly data series published by the Central Bank of Cyprus.
Bank of Cyprus Residential Property Price Index Q1 2006 – Q1 2024 (Q1 2010 = 100)
Changes in house prices
On a quarterly basis, house prices in Q1 2024 recorded increases in Paphos and Famagusta of 3.1% and 4.4% respectively. However, the increases slowed in Nicosia, Limassol, and Larnaca where they recorded 0.2%, 1 .5%, and 2.2% respectively.
On an annual basis, house prices rose in Paphos and Famagusta by 11.2% and 11.8% respectively, while the increases slowed in Nicosia by 4%, in Limassol by 9.2%, and in Larnaca by 10.7%.
Changes in apartment prices
On a quarterly basis, the growth in apartment prices slowed in all districts with the exception of Famagusta, where they rose 10.7%. Apartment prices in Nicosia rose 0.8%, in Limassol 3.7%, in Larnaca 4.3%, and in Paphos 3.5%.
On an annual basis, apartments prices rose 21.4% in Paphos, 18.1% in Larnaca, 16.5% in both Limassol and Famagusta, and 5.1% in Nicosia.
About the residential property price Indices
The residential property price indices for Cyprus are constructed by the Central Bank of Cyprus’ Real Estate Unit (REU), which is part of the Economic Analysis and Research Department, in collaboration with the member banks of the Association of Cyprus Banks (Bank of Cyprus, Hellenic Bank, Alpha Bank, National Bank of Greece, the Cyprus Development Bank, Societe Generale, Astro Bank, Ancoria Bank and Eurobank).
The indices are based on property valuation data collected since 2006 by the contracted banks, which receive the relevant information from independent property surveyors in connection with mortgage transactions, such as housing loans, mortgage refinancing and mortgage collateral. The data, which are representative of the Cyprus property market, cover all the areas under the effective control of the Republic of Cyprus (Nicosia, Limassol, Larnaca, Paphos and Famagusta) and refer to residential properties (houses and apartments).
The base period for all the indices is the first quarter of 2010 (i.e. 2010Q1=100). The Central Bank of Cyprus will be publishing the relevant data series on a quarterly basis. Further information and explanations on the methodology used for the construction of the various price indices is available in the methodology report.
Source: Cyprus Property News