The Residential Property Price Index recorded an increase of 0.4% for the fifth consecutive quarter in the third quarter of 2017, on a quarterly basis, while the Index increased by 1.4% yoy.
According to data released by the Central Bank of Cyprus (CBC), the outlook for the real estate sector is auspicious. Building permits and demand for residential loans are rising, while construction activity continues to recover, the announcement said.
However, according to CBC, “the challenge of non-performing loans remains a significant barrier to full recovery, while the impact on the real estate market from the application of VAT on land from 2018 is still uncertain “.
In particular, the apartment price index and the house price index, on a quarterly basis, increased by 0.5% and 0.3%, respectively.
All individual indices recorded an increase in all areas, with the exception of the apartments in Famagusta and the houses in Pafos.
In the third quarter of 2017 there were annual increases in most of the indices, with the highest increases being recorded in Nicosia and Limassol.
Apartment prices rose for the fifth consecutive quarter, recording a quarterly increase of 0.5% and house prices rose for the third consecutive quarter, recording an increase of 0.3%
Household prices rose for a third consecutive quarter, recording an increase of 0.3%.
On an annual basis, house prices recorded an acceleration of 1.4% in the third quarter of 2017, compared with 1.1% in the previous quarter.
On a quarterly basis, residential Property Price Index recorded increases in all areas, with the exception of Pafos, which recorded a decrease of 0.8%. In particular, residential Property Prices rose by 0.4% in Nicosia, 0.6% in Limassol, 1% in Larnaca and 1.1% in Famagusta.
As regards to annual changes in the general residential Property Price Index per province, the largest increase was recorded for another quarter in Limassol, 2.6%. An increase of 1.3% was recorded in Nicosia and 1.6% in Famagusta. Annual decreases of 0.7% and 0.8% respectively were registered in Larnaca and Pafos.
A similar picture was also recorded in house prices where all provinces recorded quarterly increases, with the exception of Pafos where a quarterly drop of 0.9% was recorded.
On an annual basis, apartment prices for the second consecutive quarter increased in all provinces with the exception of Pafos Province, which recorded an annual decrease of 3.9%.
An annual increase of 3.6% was recorded in Nicosia, 6.4% in Limassol, 2.5% in Larnaca and 1.7% in Famagusta.