The Housing Price Index increased by 0,6% on a quarterly basis in the first quarter of the year, continuing its upward trend for the seventh consecutive quarter.
According to data compiled by the Central Bank of Cyprus (CBC), the Housing Price Index reached 75,0 points from 74,6 points in the 4th quarter of last year.
The Housing Price Index (houses and apartments) shows a continuous recovery from the third quarter of 2016, according to the CBC.
On an annual basis (1st quarter 2017) the Housing Price Index increased by 1,8%.
At the same time, according to the CBC, the apartment price index and the house price index recorded a quarterly increase of 0,9% and 0,4%, respectively.
By province, all sub-indices of house prices recorded an increase with the exception of the province of Larnaca, which recorded a marginal decrease of 0,1%.
"The recovery of the real estate sector is expected to continue in the coming quarters," said the CBC, adding that this is reflected in relevant indicators of the economy that continue to show a positive trend in the first quarter of 2018.
He also notes that sales documents and building permits continued to record increases in the first quarter of 2018, despite the imposition of VAT on land sales that has been implemented since 2018.
On an annual basis, both apartment and house prices recorded an annual increase during the quarter under review, 4% and 1%, respectively.
Famagusta is the first
On a quarterly basis, the house price index increased by 1,6% in Famagusta, 0,8% in Limassol, 0,6% in Nicosia and Paphos, while in Larnaca there was a 0,1% decrease.
Regarding the annual changes in the general house price index by province, increases were recorded in all provinces. Specifically, the largest annual increase was recorded in Famagusta and was of the order of 2,9%.
An increase of 2,7% was recorded in Limassol, 2% in Paphos, 1,2% in Nicosia and 1,1% in Larnaca.
According to the CBC, apartment prices on a quarterly basis recorded the largest increase in Paphos (2,6%) and the largest decrease in Larnaca (1,4%).
In the provinces of Nicosia, Limassol and Famagusta they recorded quarterly growth of 0,7% 2% and 0,6%, respectively.
In terms of house prices, all provinces recorded a quarterly increase with the largest being in the province of Famagusta (1,8%).
The provinces in detail:
- Famagusta 1,8%
- Nicosia 0,5%
- Limassol 0,3%
- Larnaca 0,2%
- Paphos 0,1%.
On an annual basis, apartment prices increased in all provinces except Larnaca province, which decreased by 1%.
In the province of Nicosia, apartment prices recorded an annual increase of 3,8%, in Limassol 6,9%, in Paphos 4,7% and in Famagusta 0,2%.
Sales of luxury homes for the purpose of obtaining a passport are not included
In the province of Limassol in the last five quarters there is a significant recovery in property prices, especially apartments.
At this point, the CBC notes that sales of luxury homes made for the purpose of obtaining a passport are not financed by the domestic banking system, and are therefore not included in the sample for the
construction of CBC indicators.
"Nevertheless, these sales seem to have an indirect effect on the market, to which the
"Continued recovery of house (and especially apartment) prices, especially in the province of Limassol", it is reported.
On an annual basis, house prices increased or stabilized in all provinces with the largest increase in the province of Famagusta (3,9%). In the province of Nicosia the prices remained stable, while in the province of Limassol they increased by 1,2%, in Larnaca by 1,4% and in Paphos by 1,2%.
Source: Liberal