Increase of prices of residential properties slows down in 3Q 2024

The Residential Property Price Indices (houses and apartments) recorded a slowdown as regards annual price increase during the third quarter of 2024, according to the Central Bank of Cyprus, which notes that the market is entering a period of slowing down in its upward trend.

It notes that the Apartment Price Index recorded a slowdown in the annual growth rate to a greater extent than the House Price Index.

The Central Bank of Cyprus, that published on 12 March, the residential property price indices report for the 3rd quarter of 2024, says that based on various data, the real estate sector seems to continue to record a general deceleration in its growth, while house prices are expected to show more moderate increase in the short term. 

It notes that a factor inhibiting the expansion of activity in the real estate sector is the cost of construction materials, which continues to fluctuate at high levels despite the small decreases recorded, as well as the cost of borrowing, which remains relatively high.

The Central Bank of Cyprus notes that  the general housing price indices (houses and apartments) by district during the third quarter of 2024, recorded an accelerating quarterly increase in Nicosia and Famagusta (1% and 3%, respectively) and decelerating quarterly increase in Limassol, Larnaca and Paphos (0.9%, 1.1% and 2%, respectively). 

Regarding the annual changes in the general housing price indices (houses and apartments) by district, an acceleration in increase was recorded in Nicosia and Famagusta (2.7% and 11.1%, respectively) while a slow down in increase was recorded in Limassol, Larnaca and Paphos (7.4%, 8.1%, and 11.8%, respectively).

Demand for real estate, based on data from the Department of Lands and Surveys show that the total number of sales documents, for all types of real estate, during the third quarter of 2024 recorded a slowing down annual increase. 

It notes that sales documents from domestic buyers recorded an annual increase, while a slight decrease was recorded from foreign buyers. 

During the third quarter of 2024 all districts recorded an increase in sales documents except Paphos which recorded a decrease.

(Source: CNA)