Rents rising more than house prices

In the fourth quarter of 2022, annual house prices in Cyprus increased by 4.4% but dropped by 4.0% compared to the third quarter, according to Eurostat.

On the EU level, during Q4 2022, compared to 2021, there was a 2.5% rise in rents and a 3.6% increase in house prices.

Compared with Q3 2022, house prices decreased for the first time since the upward trend began in 2015 (-1.5% in Q4 compared with Q3).

Meanwhile, rents continued their upward trajectory (+0.6% compared with Q3 2022).

House prices and rents in the EU followed a similar increasing path between 2010 and Q2 2011.

However, after this quarter, house prices and rents have evolved differently.

While rents increased steadily throughout this period up to Q4 2022, house prices fluctuated considerably.

After a sharp decline between Q2 2011 and Q1 2013, house prices remained more or less stable between 2013 and 2014.

After a rapid rise in early 2015, house prices increased faster than rents until Q2 2022.

In Q3 2022, house prices increased at the same pace as rents (both +0.7% compared with Q2).

From 2010 until Q4 2022, rents increased by 19% and house prices by 47%.

When comparing Q4 2022 with 2010, house prices increased more than rents in 18 EU countries.

In the past decades, Cyprus has been one of the few member states where house prices decreased while rent prices increased slightly.

Between 2010 and 2022, house prices increased in 24 EU countries and decreased in three.

They more than doubled in Estonia (+199%), Hungary (+174%), Lithuania (+142%), Luxembourg (+136%), Latvia (+133%), Austria (+126%) and Czechia (+125%).

Decreases were observed in Greece (-14%), Italy (-9%) and Cyprus (-4%).

For rents, prices increased in 26 EU countries and decreased in one, with the highest rises in Estonia (+216%) and Lithuania (+160%).

The only decrease was recorded in Greece (-23%).