The Central Bank of Cyprus published a residential property price index for the third quarter of 2018. The highest annual growth is shown by the prices for apartments in Limassol: 8.7%. This is much more than the rest of Cyprus.
In general, apartments go up at a faster pace than at home. This is especially true for the coastal areas of Limassol.
It is noted that the index does not take into account the data on sales of elite real estate objects in the framework of the program “citizenship for investments”. Such transactions are not funded by banks, and the Central Bank bases its analysis on bank data. However, in some areas of Limassol, such transactions have an indirect effect, contributing to the increase in both sales prices and rental prices.
Recently, the growth in real estate prices in the Paphos and Famagusta regions has also accelerated, stimulated by significant demand from abroad. For comparison, in Nicosia, which is not very popular among foreign buyers, the growth rate is much lower.
In the third quarter, the price index of the Central Bank rose by 0.3% qoq. At the same time, prices for houses seem to have stabilized, while for apartments – increased by 1.2%. In annual terms, houses went up by 0.8%, and apartments – by 3%.
The aggregate index of residential real estate prices during this period increased compared with the second quarter in Limassol (1.4%), Larnaca (0.3%) and Famagusta (1.3%), remained unchanged in Nicosia and slightly decreased in Paphos ( –0.8%). In annual terms, the change was positive in all regions and amounted to 3.6%, 4.1%, 1.6%, 0.7% and 0.1%, respectively.
Houses. In quarterly terms, prices rose in Famagusta (0.9%) and Limassol (0.7%), decreased in Nicosia, Larnaca (in both regions by 0.1%) and Paphos (–1.7%). Compared to the third quarter of 2017, all regions showed an increase, except Paphos (–2%): Famagusta — 4.5%, Limassol — 1.6%, Larnaca — 1.1% and Nicosia — 0.5%.
Apartments. Compared with the second quarter of 2018, a rise in prices was noted in all regions: in Famagusta – by 3%, Limassol – by 2.9%, Larnaca – by 2.2%, Paphos – by 0.6% and Nicosia – by 0 ,one%. A similar trend was recorded for annual changes: an increase of 8.7% in Limassol, by 5.2% in Paphos, by 5% in Famagusta, by 2.7% in Larnaca and by 1.2% in Nicosia.