Property prices see significant quarterly and annual growth across Cyprus

Residential property prices have increased for both houses and apartments across Cyprus, with some districts recording significant growth, the latest quarterly index shows.

Overall, across the island, prices increased on a quarterly basis by 0.8% and 1.4% respectively, with the biggest increase being apartments in Larnaca up 2.7% and houses in Limassol up 1.5%.

The index from the Royal Institution of Chartered Surveyors (RICS) also shows that values for holiday homes across Cyprus increased by 0.4% for flats and 0.3% for houses on a quarterly basis.

Paphos recorded the highest quarterly increases for holiday apartments with an increase of 1.33% and Paralimni for holiday homes with an increase of 0.9%.

Year on year apartment prices increased by 7.1% across Cyprus and houses by 4.3% with the strongest growth being apartments in Limassol up 11.1% and houses up 12.6%.

In the lettings market apartment rents increased on a quarterly basis by 2.9% while house rents were up 1.9%. Compared to the fourth quarter of 2016, rents for apartments increased annually by 13.7% while for houses there was a rise of 8.2%.

The report points out that during the fourth quarter of 2017 the Cyprus economy showed further signs of recovery, with a seasonally adjusted quarterly GDP growth of 3.9% and an annual seasonally adjusted GDP growth of 3.9%.

It adds that an improved confidence in the Cyprus banking system and the marginally improved availability of finance have consequently assisted in a relatively higher transaction volume during the quarter, which further enhanced market sentiment.