Housing prices in Cyprus continued their upward trend in the second quarter of 2024, albeit the trend is decelerating particularly in field of apartments, according to the Central Bank of Cyprus (CBC).

The overall Residential Property Index in the second quarter of 2024 reached 96.6 units marking an quarterly increase of 1.6% (the same as in the previous quarter) while compared with the second quarter of last year, the increase amounted to 8% from 7.8% in the first quarter of the year.

The Property Price Index for houses in the second quarter of 2024 rose by 2% compared with the first quarter of this year (from a quarterly growth of 0.8% in the first quarter), marking an annual increase of 6.2% (4.7% in the previous quarter). For apartments the price index decelerated to 1.4% quarter on quarter (from 3.4% in Q1), whereas its annual growth (compared with Q2 of 2023) amounted to 12% from an annual 13.9% in the previous quarter. The annual rise in the price index from apartments remained double of the rise in housing, reflecting the increased demand for apartments.

Concerning wider developments in the residential market, the CBC said that on the basis of data by the Department of Lands and Surveys (DLS) the total number of sale contracts, covering all types of real estate, marked an annual reduction in the second quarter, driven mainly by the decline in demand by foreign buyers. The reduction in demand is not reflected in the current index, as demand in residential property is factored in with a time lag, the CBC said.

Regarding supply, the CBC said data by approved building permits show an increased inflow of new properties in the market, potentially driven by the continued decline in the index of construction material prices.

Concerning residential property prices per district, prices on a quarterly basis accelerated in Limassol, Larnaca and Paphos, with 3.2% 2.1% and 3.7% respectively, while they decelerated in Nicosia and Famagusta with -0.5% and 0.8% respectively.

Compared with the second quarter of 2023, housing prices rose by in Limassol, Larnaca and Paphos with 7.7%, 7% and 10.1% respectively, while Nicosia showed a decelerating trend with 1.3% and 9.4%.

Apartment prices compared with the first quarter of this year showed signs of deceleration in all districts. In Nicosia prices rose by 0.6%, in Limassol by 1.1% in Larnaca by 3%, in Paphos by 3.4% and in Famagusta by 2.6%

The same applied in apartment prices when compared with the second quarter of last year.  In Nicosia prices rose by 4.3%, in Limassol by 13.3% in Larnaca by 16.8% in Paphos by 17.7% and in Famagusta by 16.5%, the CBC said.