Cyprus Housing Market Unravels Price Surge Amid High Demand and Construction Costs
Cyprus Housing Market Unravels Price Surge – House prices in Cyprus continued to rise during the fourth quarter of 2022 due to increased construction costs and high demand. The Residential Property Price Index (RPPI) increased by 6.6% compared to the previous year. Apartment prices saw a higher increase of 7.7%, while house prices rose by 5.6%.
Among the districts, Paphos experienced the highest annual increase in house prices at 10.4%. Limassol, Larnaca, and Paphos also saw significant annual rises in apartment prices at 9.3%, 9.4%, and 8.6% respectively.
Despite the increase in interest rates and a decrease in mortgage demand, the Central Bank of Cyprus stated that it did not have a substantial impact on real estate demand.
Quarterly, house prices increased in all districts except Famagusta. Nicosia saw a marginal increase of 0.3%, Limassol and Larnaca increased by 2.5% and 2% respectively, and Paphos increased by 2%. Famagusta, on the other hand, saw a slight decrease of 0.8%.
Looking at annual changes in housing prices, all regions experienced an increase. Nicosia had a 3.5% increase in house prices, Limassol saw an 8.7% increase, Larnaca had a 5.1% increase, and Paphos experienced a significant rise of 9.8%. Famagusta saw a more modest increase of 4.4%.
Overall, house prices increased quarterly and annually in all districts, with varying growth rates. Apartment prices also increased in all districts except Famagusta on a quarterly and annual basis. Nicosia, Limassol, Larnaca, Paphos, and Famagusta all experienced different levels of price increases for both houses and apartments.
Article Credits go to – Editorial (Cyprus Property News)
