Home prices increased by 6.6 % in the 4th quarter of 2022

In the fourth quarter of 2022, higher construction costs and demand led to continued home price appreciation. According to a report by the Central Bank of Cyprus (CBK), the Residential Property Price Index (RPPI) increased by 6.6% year-on-year. In the third quarter of 2022, growth was 6.3% y/y. Apartment prices rose by 7.7% in the fourth quarter of 2022, while house prices increased by 5.6%.

By area, house prices in Paphos rose by 10.4%, while apartment prices rose significantly in Limassol (9.3%), Larnaca (9.4%) and Paphos (8.6%). CBK said, "The increase in key ECB interest rates and the corresponding decrease in demand for mortgages does not seem to have a significant impact on real estate demand. "

In the fourth quarter of 2022, house prices increased in all areas except Famagusta. Slight increases were recorded in Nicosia (0.3%), Limassol (2.5%), Larnaca (2%) and Paphos (2%), and a slight decrease in Famagusta (0.8%). In terms of annual changes in house price indices by area, increases were recorded in all regions.

In quarterly terms, house prices increased in all districts. In Nicosia they increased by 0.3%, in Limassol by 1.2%, in Larnaca by 1.7%, in Paphos by 2.2% and in Famagusta marginally by 0.1%. On an annualized basis, home prices also increased in all neighborhoods. House prices in Nicosia, Limassol, Larnaca, Paphos and Famagusta increased by 2.9%, 7.1%, 3.3%, 10.4% and 4.2% respectively.

Apartment prices increased quarter-on-quarter in all areas except Famagusta. In Nicosia they rose slightly by 0.2%, in Limassol by 3.6%, in Larnaca by 2.3%, in Paphos by 1.4% and in Famagusta they fell by 3.7%. Compared to the fourth quarter of 2021, apartment prices in Nicosia increased by 4.3%, in Limassol by 9.3%, in Larnaca by 9.4%, in Paphos by 8.6% and in Famagusta by 5.1%.