PROPERTY: Residential property prices in Cyprus continue upward trend since 2016

Residential Property Price Index in Cyprus rose by 0.6% in the first quarter of 2018, continuing its upward trend for seven consecutive quarters, the Central Bank of Cyprus said.

The property price tracker (comprising both houses and apartments) in the first quarter reached 75 units from 74.6 units the previous quarter, keeping an upward trajectory since the third quarter of 2016.

On an annual basis, the RPPI rose by 1.8%.

The indices of apartments and houses in Q1 2018 registered an increase of 0.9% and 0.4% respectively compared with Q4 2017.

All indices per district recorded increases with the exception of Larnaca which observed a borderline reduction of 0.1%.

“The recovery of the real estate sector is expected to continue in the following quarters,” the CBC said, adding this trend is shown from in the economy’s key indicators which continue on a positive course.

The CBC said sale contracts and building permits also increased in the first quarter of 2018 despite the application of VAT on the sale of plots since January 1, 2018.

Compared with the previous quarter, the district of Famagusta topped the list with a quarterly rise of 1.6% in the residential property index followed by 0.8% in Limassol, 0.6% in Nicosia and Paphos, while the district of Larnaca registered a marginal decline of 0.1%.