Residential Property Price Index up by 6.6% in Q4 2022

Increased construction costs and increased demand led housing prices to continue their upward trend during the fourth quarter of 2022, with the Residential Property Price Index (RPPI) up by 6.6% year-on-year, compared to a 6.3% y-o-y increase recorded during the previous quarter of 2022, according to the Central Bank of Cyprus (CBC).

Apartment prices went up by 7.7% in the fourth quarter of 2022, while houses prices recorded an increase of 5.6%.

By district, house prices in Paphos registered an impressive annual increase of 10.4%, while apartment prices recorded a large annual increase in Limassol (9.3%), Larnaca (9.4%) and Paphos (8.6%).

CBC notes that "the increase in key ECB interest rates and the consequent reduction in mortgage demand do not seem to have affected real estate demand to a substantial extent" so far.

During the fourth quarter of 2022 house prices on a quarterly basis increased in all districts except Famagusta. A marginal increase of 0.3% was recorded in Nicosia, 2.5% in Limassol, 2% in Larnaca, 2% in Paphos, while a marginal decrease of 0.8% was recorded in Famagusta.

In terms of annual changes in housing price indices by district, according to CBC, an increase was recorded in all districts. In Nicosia, house prices increased by 3.5%, in Limassol by 8.7%, in Larnaca by 5.1%, in Paphos by 9.8% and in Famagusta by 4.4%.

On an annual basis, the growth rate of housing prices in the districts of Limassol, Larnaca and Paphos accelerated, a development possibly related to the demand created due to the headquartering policy. On the contrary, in the districts of Nicosia and Famagusta the rate of growth slowed down.

On a quarterly basis, house prices recorded increases in all districts, as reported by the CBC. In Nicosia they increased by 0.3%, in Limassol by 1.2%, in Larnaca by 1.7%, in Paphos by 2.2% and in Famagusta by marginally by 0.1%.

On an annual basis, house prices also went up in all districts. House prices in Nicosia, Limassol, Larnaca, Paphos and Famagusta increased by 2.9%, 7.1%, 3.3%, 10.4% and 4.2%, respectively.

Apartment prices on a quarterly basis recorded an increase in all districts except Famagusta. In Nicosia they increased marginally by 0.2%, in Limassol 3.6%, in Larnaca 2.3%, in Paphos 1.4%, while in Famagusta they recorded a decrease of 3.7%.

On a year-over-year basis, apartment prices rose in all districts for the sixth consecutive quarter. In the fourth quarter of 2022 compared to the corresponding quarter of 2021, prices in Nicosia increased by 4.3%, in Limassol by 9.3%, in Larnaca by 9.4%, in Paphos by 8.6% and in Famagusta by 5.1%.