The Residential Property Price Index (RPPI) for the first quarter showed signs of slowing down due to the stricter criteria imposed on the Cyprus Investment Programme and uncertainty created by the coronavirus pandemic.
Central Bank of Cyprus (CBC) said on Wednesday its compiled RPPI rose by an annual 1.8% in the first quarter of 2020 compared with an increase of 2.2% in Q4, 2019 and 2.8% in Q3.
“The limited increase is due to the reduction of demand for real estate both by foreign investors and local buyers,” the CBC said.
It argued the slowdown was fuelled by the stricter criteria in the Cyprus investment for passports that came into force in mid-2019, while the Covid-19 pandemic renders the climate even more uncertain.
In Q1 2020 both house and apartment prices registered an annual growth of 0.8% and 4.6% respectively compared to 1.5% and 4.1% respectively in the previous quarter.
In January to March, the RPPI recorded a quarterly increase in al districts with the exception of Limassol where prices fell by 0.3%.
Prices in Larnaca rose by 1.7%, in Paphos was up by 0.8%, in Nicosia a sluggish 0.4% and Famagusta also saw a fractional rise of 0.3%.
Compared with Q1 2019, the RPPI rose in all districts. Famagusta had the biggest rise with 3.6%, followed by Larnaca 3.0%, Limassol 1.9%, Paphos 1.4% and Nicosia trailing with 1.2%.
On a quarterly basis (compared with Q4 2019), house prices in Limassol declined by 1% followed by Paphos where they declined by 0.6%.
In Larnaca house prices edged up 1.8%, in Famagusta by 0.6% and in Nicosia, there was a slender 0.2% increase.
On an annual basis, house prices fell by 0.2% in Limassol while prices in Paphos remained unchanged.
Apartment prices in Q1 2020 registered their eighth annual increase for the eighth consecutive quarter, with prices in Larnaca showed signs plateauing.
Apartment prices in Larnaca increased by 5.0% compared with a hike of 7.4% in the previous quarter.
Prices in Limassol rose by 7.9% from 7.6% in the previous quarter, it was 4.3% in Paphos (from 1.6%), 2.4% in Famagusta (0.8%) and 2.3% in Nicosia (up from 1.5%).