Residential property prices recorded their first annual increase in seven years, according to data released on Friday by the Central Bank of Cyprus (CBC). In particular, residential property prices recorded a slight increase of 0.2% in the first quarter of 2017.
Apartment prices recorded an annual increase for the second consecutive quarter (1.6%), while house prices recorded the lowest annual decline since end 2010 (0.3%).
As noted by the Central Bank, the continued quarterly increases, albeit small, confirm the recovery of the real estate sector in Cyprus, as other relevant indicators also show.
Both house price and apartment price indices recorded a 0.3% increase on a quarterly basis.
As CBC noted, the recovery of Cyprus economy at a steady pace, the reduction of unemployment and the strengthening of trust are factors supporting the positive course of property prices in Cyprus.
Price changes per district
On a quarterly basis, the residential property prices index increased for the third consecutive quarter in Nicosia (0.2%), Limassol (0.9%), and Famagusta (0.1%). Larnaca and Paphos recorded small decreases of 0.7% and 0.6%, respectively.
With regard to annual changes in the residential property prices, Limassol recorded an increase of 0.9%, the first from the third quarter of 2010. On the other hand, the remaining districts recorded annual decreases, with the highest being in Famagusta (3.7%), and the lowest in Nicosia (0.1%). In Larnaca, residential property prices recorded an annual decline of 0.8%, and in Paphos 1.4%.
It is however noted that these annual declines have slowed and the districts are expected to record increases in the near future, given the recovery of the real estate sector continues.
On a quarterly basis, apartment prices recorded a 1.4% increase in Limassol and stabilization in Larnaca and Famagusta districts. On the contrary, in Paphos and Nicosia, apartment prices recorded a quarterly decline of 1.5% and 0.1%, respectively.
As far as house prices concerns, the districts of Nicosia, Limassol and Famagusta noted small quarterly increases of 0.3%, 0.7% and 0.2%, respectively. A small decrease of 0.9% was recorded in Larnaca while prices in Paphos remained stable.
On an annual basis, apartment prices in the first quarter of 2017 increased in Nicosia (0.2%), Limassol (2.1%) and Larnaca (3%). On the contrary, there was an annual decrease in the districts of Paphos (3,1%) and Famagusta (2,6%).
On an annual basis, house prices rose 0.5% and 0.3% in the districts of Limassol and Pafos, respectively. An annual decrease was recorded in Nicosia by 0.2%, in Larnaca by 2.5% and in Famagusta by 3.1%.