Housing prices increased by6.6% in the fourth quarter of2022.

As a result of rising construction costs and demand for real estate, housing prices continue to increase in the fourth quarter of 2022. According to a report from the Central Bank of Cyprus (CBC), the Residential Property Price Index (RPPI) rose by 6.6% compared to the previous year.

In the third quarter of 2022, the growth was 6.3% year-on-year. Apartment prices increased by 7.7% in the fourth quarter of 2022, while house prices rose by 5.6%. By region, house prices in Paphos grew by 10.4% over the year, and apartment prices significantly increased in Limassol (9.3%), Larnaca (9.4%), and Paphos (8.6%).

CBC noted: "The increase in key interest rates by the ECB and the corresponding decrease in mortgage demand do not seem to have had a significant impact on the demand for real estate." In the fourth quarter of 2022, housing prices increased quarterly in all areas except Famagusta. A slight increase of 0.3% was recorded in Nicosia, 2.5% in Limassol, 2% in Larnaca, and 2% in Paphos, while a slight decrease of 0.8% was noted in Famagusta.

As for the annual changes in housing price indices by district, growth has been recorded in all regions. In Nicosia, house prices increased by 3.5%, in Limassol by 8.7%, in Larnaca by 5.1%, in Paphos by 9.8%, and in Famagusta by 4.4%. The annual growth rate of housing prices in the districts of Limassol, Larnaca, and Paphos is accelerating, possibly related to the policy of relocating headquarters.

Quarterly, housing prices have increased in all areas. In Nicosia, they rose by 0.3%, in Limassol by 1.2%, in Larnaca by 1.7%, in Paphos by 2.2%, and in Famagusta slightly by 0.1%. Annual growth in housing prices was also observed in all areas. Prices in Nicosia, Limassol, Larnaca, Paphos, and Famagusta increased by 2.9%, 7.1%, 3.3%, 10.4%, and 4.2% respectively.

Apartment prices have increased quarterly 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%, while in Famagusta they decreased by 3.7%. Year-on-year, apartment prices have been rising in all areas for six consecutive quarters. In the fourth quarter of 2022 compared to the same quarter in 2021, 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%.