The rise in residential property prices (both houses and apartments) slowed down in the third quarter of 2024, signaling a cooling trend in the market, according to the Central Bank of Cyprus. The latest data suggests that the upward momentum in real estate is easing, particularly in apartment prices, which saw a sharper slowdown compared to houses.
Market Trends and Influencing Factors
In its Q3 2024 Residential Property Price Index Report, published on Wednesday, the Central Bank of Cyprus highlighted a general deceleration in price growth across the sector. Moving forward, house prices are expected to increase at a more moderate pace.
Several factors continue to limit expansion in the real estate market:
- High construction material costs, which remain elevated despite minor declines.
- High borrowing costs, which have not significantly decreased.
Regional Price Index Changes
The housing price trends varied by district in Q3 2024:
Quarterly Changes (Compared to Q2 2024)
- Price growth accelerated in Nicosia (+1%) and Famagusta (+3%).
- Price growth slowed in Limassol (+0.9%), Larnaca (+1.1%), and Paphos (+2%).
Annual Changes (Compared to Q3 2023)
- Prices increased at a faster rate in Nicosia (+2.7%) and Famagusta (+11.1%).
- Price growth slowed in Limassol (+7.4%), Larnaca (+8.1%), and Paphos (+11.8%).
Real Estate Demand and Sales Activity
Data from the Department of Lands and Surveys indicates a slower annual increase in real estate transactions across all property types in Q3 2024.
- Sales to domestic buyers continued to rise.
- Sales to foreign buyers saw a slight decline.
- All districts recorded an increase in sales documents, except Paphos, which reported a decrease.
The Central Bank’s findings suggest that while the real estate sector remains active, rising costs and economic factors are tempering its growth.
Source: Stockwatch.com.cy