House prices climbed 5.9% in Q1

The House Price Index (HPI) recorded a 5.9% annual increase for the first three months of 2023, marking its fifth consecutive quarterly growth, according to a preliminary estimate by the Cyprus Statistical Service.

Specifically, the Housing Price Index (HPI) in Q1 2023 reached 110.14 units from 108.03. This marks the fifth consecutive quarterly increase of the Index annually.

The last decrease in the Index was observed in Q4 2021, with a decline of 5.2%.

Compared to Q4 2022, the HPI increased by 2.0% following a 4%vdecrease in Q4 2022 compared to the third quarter of the same year.

The HPI is a quarterly index which measures the change in the average prices of residential dwellings.

The Central Bank of Cyprus House Price Index (CPI) (houses and apartments) recorded quarterly and annual growth in Q4 2022.

Rising house prices are mainly underpinned by increased, albeit decelerating, construction costs, while the increase in demand in real estate is estimated to contribute in the same direction.

The CPI in Q4 2022 registered a quarterly increase of 1.6% compared to 2.1% in the previous quarter.

Year-over-year, house prices were projected to increase by 6.6% in Q4 2022, compared to 6.3% in Q3 2022.