Cyprus residential property prices rose again in the first quarter of 2018 according to the Cyprus Residential Property Price Index.
The property price tracker – which includes both houses and apartments – reached 75 units in the first quarter, up from 74.6 units the previous quarter, keeping an ongoing upward trajectory since the third quarter of 2016.
The prices of apartments and houses in Quarter one 2018 registered an increase of 0.9 per cent and 0.4 per cent respectively compared with Quarter four 2017.
The Central Bank of Cyprus, who compiles the price index, confirmed that an annual basis Cyprus residential property prices were up by 1.8 per cent compared to the previous year.
All districts of Cyprus showed increases in the first quarter, with the one exception of Larnaca which recorded a slight reduction of 0.1 per cent.
The Central Bank of Cyprus also confirmed that sales contracts and building permits also increased in the first quarter of the year, despite the application of VAT on the sale of plots introduced since January 1, 2018. This confirms that developers are confident about the future of the Cyprus residential property market.
Compared with the previous quarter, the district of Famagusta topped the list with a quarterly rise of 1.6 per cent in the Cyprus Residential Property Price Index, followed by 0.8 per cent in Limassol, 0.6 per cent in Nicosia and Paphos, while the district of Larnaca registered a marginal decline of 0.1 per cent.
The Central Bank of Cyprus commented that ‘the recovery of the real estate sector is expected to continue in the following quarters’, confirming that the economy’s key indicators also show a positive trend.
With the continual upward movement of prices almost reaching two years now, it seems that overseas property investors can have confidence in Cyprus residential property as an investment for the future.