The property market in Cyprus reached its highest level in the last 15 years at the end of the first half of the year. This is confirmed by the data in the report presented by the Central Bank of Cyprus (CBC). Prices for housing, especially flats, are actively growing, which is due to increased demand. Apartments, on average, rose in price by 3.1%.
In Q2 2023, the Cyprus House Price Index (HPI) showed an increase of 1.5% compared to an increase of 2.1% in the previous quarter. On a year-on-year basis, property values increased by 7.4% in Q2 2023 compared to 7.7% in Q1, with apartment values rising by 10.1% and house prices increasing by 5.6%. Foreign investors have fueled much of the interest.
The majority of property transactions were concluded by local residents. However, foreign buyers also played a significant role in the housing market. Analysts believe that the main factor in the price growth is the increase in demand amid supply constraints.
The report says that the increased foreign demand can be attributed to the policy of locating the headquarters of large companies and encouraging international firms to relocate to Cyprus, as well as an increase in the number of students and an increased interest in property as an investment.
In Q2 2023, housing prices in all regions of Cyprus rose on a quarterly basis.
In particular, prices increased by 4.4% in Nicosia, by 10.1% in Limassol, by 8.7% in Larnaca, and by 5.9% in Famagusta. A slight decrease was observed only in Limassol. The Central Bank of Cyprus notes that even the tightening of lending norms did not have a negative impact on demand.