The Cyprus real estate market is showing steady price growth, which emphasizes its reliability and stability. The average quarterly increase in property prices in Cyprus is 0.1%, but sometimes there are fluctuations of up to 5% per quarter.
According to the official House Price Index of Cyprus, the first quarter of 2023 saw a quarterly increase of 2.1% and an annual increase of 7.7%. Unlike in 2022, when the price increase was driven by higher construction costs, the current trend is supported by demand.
The largest price increases are in the residential real estate market, especially for apartments, which have risen in price for seven consecutive quarters. One of the reasons for this is a new policy requiring foreign companies operating in Cyprus to relocate their headquarters to the island. As of August 2023, one-third of all transactions in the real estate market were made by foreigners and expats from countries outside the European Union.
Limassol has one of the highest rates of real estate price growth in the country. Apartment prices here increased by 10.4% year-on-year from 2022 to 2023, while house prices rose by 9.4%. Overall, residential property prices in the area grew by 10.6% year-on-year.
Larnaca also shows a significant increase in apartment prices, rising by 12.3% year-on-year. House prices rose by 5.8% and overall residential property prices rose by 7.7% year-on-year.
Paphos ranks among the leaders in terms of annual apartment price growth, which amounted to 10.3%. House prices increased by 5.7% and the overall increase in residential property prices reached 6.8% year-on-year.
Nicosia is also showing steady price growth. Apartment prices in the area increased by 4.4% year-on-year, while house prices rose by 4.2%. Overall, annual growth in residential property prices amounted to 4.3%.
In conclusion, the Cyprus real estate market continues to show positive momentum, supported by strong demand and new economic conditions.
Read more: https://imin-cyprus.com/guide/cyprus-property-cost/#.