Nicosia: The increase in residential property prices continued to slow down in the fourth quarter of 2024, according to the Central Bank of Cyprus, which notes that the main cause is the high cost of construction materials and the high cost of borrowing.
According to Cyprus News Agency, based on the Central Bank of Cyprus’s quarterly results, during the fourth quarter of 2024, on an annual basis, the residential property price indices for houses and apartments recorded a deceleration in increase, with the Apartment Price Index experiencing a greater slowdown compared to the House Price Index.
Various indices indicate a general slowdown in the real estate sector’s upward trajectory, as evidenced by a reduction in the increase in the number of sales documents, combined with an increase in supply, which includes more housing availability for rent and sale.
The Central Bank of Cyprus identifies the fluctuating high levels of construction material costs and relatively higher borrowing costs compared to the previous five years as inhibiting factors for the real estate sector’s expansion.
According to the Central Bank of Cyprus, the fourth quarter of 2024 saw an acceleration in price increase only in Paphos at 13.4%, while Nicosia, Limassol, Larnaca, and Famagusta recorded slowdowns at 0.7%, 4.4%, 6.5%, and 9.2% respectively.
On an annual basis, house price increases accelerated in Paphos at 14.7%, while slowdowns were seen in Limassol and Famagusta at 5.1% and 7.8% respectively. Nicosia recorded a decrease of 0.4%, while Larnaca maintained a stable growth rate of 6.1%.
The annual increase in apartment prices slowed down in all districts. In Nicosia, apartment prices increased by 2.6%, in Limassol by 5.5%, in Larnaca by 8.7%, in Paphos by 12.1%, and in Famagusta by 14.2%. The fourth quarter of 2024 also saw an annual increase in the number of sales documents in all districts except Nicosia and Famagusta, which recorded a decrease.
The residential property price indices for Cyprus are prepared by the Central Bank of Cyprus’s Real Estate Unit, in collaboration with member banks of the Association of Cyprus Banks and KEDIPES. These indices are based on property valuation data collected since 2006 from independent property surveyors in connection with mortgage transactions.
The data, representing the Cyprus property market, covers all areas under the effective control of the Republic of Cyprus, including Nicosia, Limassol, Larnaca, Paphos, and Famagusta, and focuses on residential properties such as houses and apartments.