Cyprus Residential Property Price Index decelerated in the first quarter of 2024 with the Central Bank of Cyprus cautioning over a new deceleration in the coming quarters due a slowdown in property sale contracts which have not been reflected in the current quarter.

The CBC which constructs the index said the deceleration is driven by a normalisation in real estate demand, combined with a rise in supply, the rising interest rates, small reduction in construction material prices although they remain at high levels.

Compared with the previous quarter the index (both flats and houses) marked an increase of 1.6% following an increase of 2.3% in the previous quarter. “This rise in the index in the first quarter was driven by an increase of 0.8% in the prices of houses and 3.4% in flat prices,” the CBC said.

On an annual basis, that is compared with Q1 2023, the index recorded an increase of 7.8% from an 8.3% increase in the fourth quarter of 2023, with flats prices marking an increase of 13.9% and houses by 4.7%.

Changes in prices by district

House prices on a quarterly basis in Q1 2024 recorded accelerated increase in Pafos and Famagusta with 3.1% and 4.4% respectively, whereas house prices in Nicosia, Limassol and Larnaca marked a slow down with 0.2%, 1.5% and 2.2% respectively.

Compared with the first quarter of 2023 the index in Pafos and Famagusta rose by 11.2% and 11.8% respectively while prices in Nicosia, Limassol and Larnaca decelerated to 4%, 9.2% and 10.7% respectively.

Quarterly house prices in Pafos and Famagusta rose by 3.3% and 2.6% respectively, whereas prices in Limassol, Larnaca and Nicosia decelerated to a respective 0.3%, 1.1% and 0%.

Flat prices on quarterly basis, marked a decelerated increase in all districts, excluding Famagusta where prices accelerated. IN Nicosia flat prices rose by 0.8%, in Limassol by 3.7%, in Larnaca by 4.3%, in Pafos by 3.5% with Famagusta registering an increase of 10.7%.

Compared with the first quarter of last year, flats prices registered accelerated increases in Limassol, Larnaca and Famagusta with 16.5%, 18.1% and 16.5% respectively with prices in Nicosia and Pafos decelerating to 5.1% and 21.4% respectively.