Increased construction costs and demand led house prices to continue their upward trend during the fourth quarter of 2022, with the Residential Property Price Index (RPPI) up by 6.6% year-on-year.
It compares to a 6.3% y-o-y increase recorded during Q3 2022, according to the Central Bank of Cyprus (CBC).
Apartment prices went up by 7.7% in the fourth quarter of 2022, while house prices recorded an increase of 5.6%.
By district, house prices in Paphos registered an impressive annual increase of 10.4%, while apartment prices recorded a large annual rise in Limassol (9.3%), Larnaca (9.4%) and Paphos (8.6%).
CBC said: “The increase in key ECB interest rates and the consequent reduction in mortgage demand does not seem to have affected real estate demand substantially”.
During Q4 2022, house prices increased quarterly in all districts except Famagusta.
A marginal increase of 0.3% was recorded in Nicosia, 2.5% in Limassol, 2% in Larnaca, and 2% in Paphos, while a marginal decrease of 0.8% was recorded in Famagusta.
In terms of annual changes in housing price indices by district, an increase was recorded in all regions.
In Nicosia, house prices increased by 3.5%, Limassol by 8.7%, Larnaca by 5.1%, Paphos by 9.8%, and Famagusta by 4.4%.
On an annual basis, the growth rate of house prices in the districts of Limassol, Larnaca and Paphos accelerated, possibly related to the demand created due to the headquartering policy.
On the contrary, in Nicosia and Famagusta districts, the growth rate slowed.
Quarterly, house prices recorded increases in all districts.
In Nicosia, they increased by 0.3%, in Limassol by 1.2%, in Larnaca by 1.7%, in Paphos by 2.2% and in Famagusta marginally by 0.1%.
On an annual basis, house prices also went up in all districts.
House prices in Nicosia, Limassol, Larnaca, Paphos and Famagusta increased by 2.9%, 7.1%, 3.3%, 10.4% and 4.2%, respectively.
Apartment prices quarterly recorded an increase in all districts except Famagusta.
In Nicosia, they increased marginally by 0.2%, in Limassol by 3.6%, in Larnaca by 2.3%, in Paphos by 1.4%, while in Famagusta, they recorded a decrease of 3.7%.
On a year-over-year basis, apartment prices rose in all districts for the sixth consecutive quarter.
In Q4 2022, compared to the same quarter of 2021, prices in Nicosia increased by 4.3%, Limassol by 9.3%, Larnaca by 9.4%, Paphos by 8.6%, and Famagusta by 5.1%.