Cyprus house prices rise 5.9% in 2006

Rising by more than CYP 465 per month

 

House price inflation in Cyprus accelerated in 2006 compared with 2005, according to the latest results from the hedonic BuySell Home Price Index, despite a month-on-month dip towards the end of the year.

The BuySell Home Price Index rose by 5.9% year on year in January-December 2006, having risen by 2.5% in the same period of 2005.

The Average Home Price in December was CYP 90,881 (approx EUR 155,000), compared with CYP 85,292 in December 2005. This means that average house prices rose by more than CYP 465 per month.

 

Highest level ever in August

 

After hovering at around 2005 levels during the first two months of the year, prices began a six-month rally form March, which lasted up until the end of the summer, bringing the BuySell Home Price Index at its highest-ever level of 119.59 in August.

The cumulative increase over this six-month period was 8.9%.

Autumn, on the other hand, saw a corrective path for housing prices, with October recording the largest month-on-month decrease for the year (-0.9%).

The year ended with a further marginal decrease of 0.4% for December. However, home prices were still 5.9% higher in 2006 than in 2005.

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.

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.

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. For more information on the methodology of the Index and on Hedonic Prices please refer to: The “Asking Price and Transaction–based Indices for the Cyprus Housing Market (Rebased)” by Dr. Stelios Platis and Marios Nerouppos of S. Platis ECONOMIC RESEARCH.

The BuySell Home Price Index constitutes the only valid gauge of the Cyprus housing market and is considered as an effective tool for home buyers, sellers and investors. F.M.