Housing prices rise 2.3% in Q4 of 2023, driven by apartments

The Cyprus housing market continued its upward trajectory throughout the fourth quarter of 2023, according to data released by the Central Bank of Cyprus.

The Residential Property Price Index (RPPI) witnessed a notable 2.3% increase, marking the fourth consecutive quarter of growth.

Driving this surge were substantial gains in apartment prices, which soared by 3.2%. This surge underscores a persistent trend favouring smaller, more affordable housing options, particularly in urban areas.

The robust demand from domestic buyers remains a primary driver, fueled in part by investment strategies such as buy-to-let ventures. However, a decrease was observed in the number of property sale deeds submitted by foreign buyers. Additionally, a decrease was observed in the number of registrations of companies of foreign interests through the Companies Facilitation Unit compared to 2022, within the framework of the (headquartering policy).

The RPPI (houses and apartments) during the fourth quarter of 2023 recorded an increase of 2.3% compared to a 2.2% increase in the previous quarter. The increase in the RPPI during the fourth quarter of 2023 compared to the previous quarter stemmed from a 1.8% increase in house prices and a 3.2% increase in apartment prices.

On an annual basis, there was an 8.3% increase in housing prices during the fourth quarter of 2023, compared to 7.6% in the third quarter of 2023. Apartment prices increased by 12.7%, and house prices by 5.7% during the quarter under review.

Housing prices on a quarterly basis increased in all districts for the fourth consecutive quarter during the fourth quarter of 2023. Specifically, in Nicosia, there was an increase of 1.5%, in Limassol 3%, in Larnaca 2.5%, in Paphos 2.7%, and in Famagusta 2.1%.

Regarding the annual changes in the RPPI by district, there was an increase across Cyprus. Specifically, in Nicosia, housing prices increased by 5.1%, in Limassol by 10.7%, in Larnaca by 11%, in Paphos by 8.3%, and in Famagusta by 9.5%.

House prices, on a quarterly basis, increased in all districts. Specifically, in Nicosia by 1.5%, in Limassol by 2.5%, in Larnaca by 1.2%, in Paphos by 1.7%, and in Famagusta by 1.4%. On an annual basis, house prices increased in all districts as well. Specifically, in Nicosia, Limassol, Larnaca, Paphos, and Famagusta, prices increased by 5%, 6.5%, 7.7%, 2.6%, and 10.9%, respectively.

(Source: CNA)