Real Estate Prices in Cyprus: Trends, Regional Insights, and Market Projections for 2024

Real Estate Prices in Cyprus: Trends and Insights for 2024

The Central Bank of Cyprus (CBC) has reported a deceleration in the House Price Index (HPI) for houses and apartments in the first quarter of 2024. This trend is anticipated to continue, attributed to a significant slowdown in sales documents, which has yet to impact the index.

Factors Contributing to the Slowdown

According to the Central Bank of Cyprus, several factors are contributing to this slowdown:

• Normalization in Real Estate Demand: Indicated by a marginal increase in the number of sales documents.
• Increase in Supply: More homes are available for rent and sale.
• Rising Lending Rates: Higher interest rates for home purchases.
• Slight Reductions in Construction Costs: Despite reductions, costs remain high.

Quarterly and Annual Changes

In the first quarter of 2024:

• Quarterly HPI: Homes and apartments rose by 1.6%, down from a 2.3% increase in the previous quarter. This includes a 0.8% increase in house prices and a 3.4% increase in apartment prices.
• Annual HPI: House prices saw a 7.8% increase, compared to an 8.3% rise in Q4 2023. Apartment prices surged by 13.9%, while house prices increased by 4.7% during the same period.

For a more detailed analysis of house price trends, visit Cyprus Property News.

Regional Price Increases

Quarterly Basis:

• Paphos: 3.1%
• Famagusta: 4.4%
• Nicosia: 0.2%
• Limassol: 1.5%
• Larnaca: 2.2%

Annual Basis:

• Paphos: 11.2%
• Famagusta: 11.8%
• Nicosia: 4%
• Limassol: 9.2%
• Larnaca: 10.7%

Further details on regional price changes can be found at Financial Mirror.

Focus on House Prices by Province

Quarterly Changes:

• Paphos: 3.3%
• Famagusta: 2.6%
• Limassol: 0.3%
• Larnaca: 1.1%
• Nicosia: No change

Annual Changes:

• Paphos: 7.1%
• Nicosia: 3.6%
• Limassol: 3.9%
• Larnaca: 6.6%
• Famagusta: 10.6%

Apartment Prices

Quarterly Changes:

• Nicosia: 0.8%
• Limassol: 3.7%
• Larnaca: 4.3%
• Paphos: 3.5%
• Famagusta: 10.7%

Annual Changes:

• Limassol: 16.5%
• Larnaca: 18.1%
• Famagusta: 16.5%
• Nicosia: 5.1%
• Paphos: 21.4%

Market Stabilization

Data from the land registry corroborates this slowdown, with sales documents for all property types showing a marginal year-on-year increase of 0.6% in Q1 2024 (3,597 compared to 3,574 in Q1 2023). This reflects a relative stabilization in overall property demand.

“This slowdown is not yet reflected in the HPI, which, because it is calculated on the basis of estimates of real estate market prices, incorporates developments in actual transactions with some time lag,” the CBC said. For more information, see the land registry data.

Conclusion

Real estate prices in Cyprus are experiencing a deceleration, influenced by various economic factors and market dynamics. Understanding these trends can help buyers and investors make informed decisions. For more insights and detailed information, visit the Soneverse Real Estate page and explore our homepage.

By staying informed on the latest trends and projections, stakeholders can better navigate the evolving landscape of real estate prices in Cyprus.