The Rise of Residential Property Prices in Q4 2022

Jul 21, 2023 | Cyprus Economy

The fourth quarter of 2022 witnessed a particularly significant increase in apartment prices, which rose by 7.7%, while house prices also experienced a notable growth of 5.6%. These figures demonstrate the strong appeal and investment potential of the residential property sector in Cyprus.

When examining the regional dynamics apartment prices rose significantly in Limassol (9.3%), Larnaca (9.4%), and Paphos (8.6%). These regional variations highlight the diverse opportunities available to potential buyers and investors in different areas of Cyprus.

Despite the increase in key interest rates by the European Central Bank (ECB) and the subsequent decrease in demand for mortgages, the CBC notes that the impact on real estate demand has been relatively minimal. This resilience in the face of changing economic conditions further underscores the stability and attractiveness of the Cyprus housing market.

Analyzing the quarterly and annual trends, it is evident that house prices experienced positive growth in all districts except for Famagusta, which had a slight decrease of 0.8%. The annualized growth rates were particularly noteworthy, with Nicosia witnessing a 3.5% increase, Limassol at 8.7%, Larnaca at 5.1%, Paphos at 9.8%, and Famagusta at 4.4%. These figures underscore the consistent appreciation of property values across the region.

In terms of apartments, prices increased quarterly in most areas except for Famagusta, which experienced a decrease of 3.7%. However, the year-on-year growth of apartment prices was positive across all districts for the sixth consecutive quarter. Notably, Nicosia witnessed a 4.3% increase, Limassol at 9.3%, Larnaca at 9.4%, Paphos at 8.6%, and Famagusta at 5.1%.

These trends demonstrate the promising outlook for the residential property market in Cyprus, presenting opportunities for both homebuyers and investors alike. The sustained growth in property prices, coupled with regional variations and the overall resilience of the market, indicates a favorable environment for individuals considering real estate ventures in Cyprus.

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