Cyprus house price inflation accelerates

Up 10.3% year on year in August

Residential house prices rose for their sixth consecutive month in August, according to the BuySell Cyprus Home Price index. This marked the longest rally since the BuySell Home Price Index began recording home prices in Cyprus.

Prices increased by 1.6% month on month in August, bringing the average home price to CYP 93,191.

On a year on year basis, prices are accelerating. Residential house prices (“home prices”) rose by 10.3% year on year in August–the highest year-on-year growth on record–compared with a low this year of 1.3% in March.

Prices have risen by a cumulative 8.5% since the start of the year.

The BuySell Home Price Index was created and is updated monthly on behalf of BuySell Cyprus Real Estate by the independent economic research organisation S. Platis Economic Research.

Is is an hedonic index, which means that among other things it takes account of factors such as the improvements in the quality of housing (provision for air-conditioning, for example).

The Index is announced during the second week of each month and depicts the movement of prices at which residential properties are sold in Cyprus, based on the extensive BuySell Cyprus Real Estate database.

For the calculation of the June 2006 index point, the BuySell database included housing units from the Nicosia district (11%), Limassol district (16%), Larnaca district (23%), Paphos district (24%), and Famagusta district (26%).

The BuySell Home Price Index has been rebased in September 2005, in order to keep the Index updated with respect to the most recent quality characteristics of the housing market in Cyprus.