Cyprus Residential Property Prices Continue to Rise

The prices of residential property in Cyprus rose by 0.3 per cent over the first quarter of 2017 compared to the previous three months.

The latest Residential Property Price Index from the Cyprus Central Bank confirmed the rise, which represents the third consecutive quarterly rise in residential property prices.

The Central Bank noted that although the continued quarterly increases recorded were small, it confirms a sustained recovery in the Cyprus real estate market.

Residential property prices in Nicosia rose 0.2 per cent for a third consecutive quarter. Prices in Limassol rose by 0.9 per cent, while in Famagusta they rose 0.1 per cent. However, property prices in Larnaca and Paphos fell 0.7 per cent and 0.6 per cent respectively.

On an annual basis, prices in Limassol rose by an annual 0.9 per cent. However, property prices in Famagusta fell 3.7 per cent, while in Paphos, Larnaca and Nicosia they fell by 1.4 per cent, 0.8 per cent and 0.1 per cent respectively.

Cyprus was saved from the brink of bankruptcy in March 2013 under a three-year 10-billion-euro economic assistance program. The program was offered by the Eurogroup and the International Monetary Fund, after a slowdown of the economy which started in 2010 that deepened to the extent of cutting Cyprus off the international markets.

The latest Cyprus Property Price Index from the Royal Institution of Chartered Surveyors (RICS) was even more upbeat, showing prices for residential houses and flats increased on a quarterly basis by 2.3 per cent and 1.3 per cent respectively, with the biggest increase recorded in Larnaca, at 4.6 per cent for flats and 2.8 per cent for houses.

Confirming good news for overseas property investors, the report showed prices for holiday homes on a quarterly basis across Cyprus grew by 1.7 per cent for flats and 1.3 per cent for houses.

Limassol recorded the highest quarterly increases for holiday apartments with an increase of 2.9 per cent and Paralimni for holiday homes with an increase of 2.1 per cent.

Rents were also shown to be up across Cyprus. On the same quarterly basis, rental values rose by 2.5 per cent for apartments and 2.6 per cent for houses.