PROPERTY: Cyprus house prices record second biggest drop in EU

Average house prices in Cyprus fell by 1.8% in Q1, 2018, registering the second biggest drop in the European Union where the trend for property prices is upwards, according to official data.

According to Eurostat figures, also released Tuesday, Cyprus has the second largest quarterly decrease in house prices in the EU.

The largest quarterly decreases in house prices were observed in Malta (-4.7%), Cyprus (-1.8%) and Sweden (-0.8%), Eurostat said.

The highest annual increases in house prices in Q1 2018 were recorded in Latvia (+13.7%), Slovenia (+13.4%), Ireland (+12.3%) and Portugal (+12.2%), while prices fell in Sweden and Italy (both -0.4%) as well as in Finland (-0.1%).

Compared with the previous quarter, the highest increases were recorded in Latvia (+7.5%), Hungary and Slovenia (both +4.4%) as well as in Portugal (+3.7%).

The House Price Index (HPI) for Q1 reached 103.34 units, the Cyprus statistical service said.

Compared to Q4 of 2017, the index decreased by 1.8% while year-on-year it increased by 3.7%.

This paints a mixed picture as annual growth is moving upward but quarterly figures do temper optimism of a revival in the property market.

HPI is a quarterly index measuring changes in the average prices of all types of residence with the land value also included.

According to the latest available figures from the Cyprus Central Bank, house prices increased 0.4% in Q4, 2017 with an annual rise of 1.5%.

The biggest increase in the price of houses and flats was in Limassol (2.9%) and the lowest rise was in Larnaca (0.5%)

House prices, as measured by the House Price Index, rose by 4.5% in the euro area and by 4.7% in the EU in the first quarter of 2018 compared with the same quarter of the previous year.

Compared with Q4 2017, house prices rose by 0.6% in the euro area and by 0.7% in the EU in the first quarter of 2018, Eurostat said.

Quarterly and annual percentage changes are presented in the Cystat table: