House prices slow, apartment values go up

A slowdown in the residential Cyprus property price indices has been recorded in the second quarter of 2021 due to a small decrease in house prices and an increase in apartment values.

According to the Residential Property Price Index (RPPI) report for Q2 published by the Cyprus Central Bank, a quarterly increase of 0.3% was recorded from 0.5% in Q1 2021.

It recorded an increase of 0.2% from 0.9% in the previous quarter on an annual basis.

“The price of houses presents a different picture from the price of apartments, with the first recording a decrease, compared to the prices of apartments which record an increase”, the report notes.

According to the Central Bank, the price of houses dropped both quarterly and on an annual basis to 0.3% and 1%, respectively.

On the contrary, apartment prices increased by 1.3% quarterly and by 3% annually.

This trend was seen in all districts except Limassol, which recorded a rise in house prices, while in Paphos, there was an annual drop in the price of apartments.

The Central Bank said the uptick in apartment prices reflects the continued demand by local buyers and investors for flats compared to houses in most districts.

It said Cypriots invest more in smaller houses and apartments. It is attributed to the fact that savings are geared for purchasing property either as an investment or to live in.

Moreover, the increase in construction material cost has played a key role in maintaining the price levels.

According to the sales documents, the Central Bank said demand for property by investors has stabilised due to the promotion of investments and the government’s programme for foreigners to obtain permanent residence permits in Cyprus.