The General House Price Index from the Central Bank of Cyprus (CBC) indicated a deceleration in property price growth during the third quarter of 2024. The increase in apartment prices slowed more noticeably than that of houses.

The House Price Index recorded a 0.9% quarterly increase, down from 1.6% in the previous quarter. Annually, house prices rose by 6.5%, compared to 8% in Q2. Apartment prices saw the most significant slowdown, with an 8.8% annual increase, down from 12% in the previous quarter.

Demand from local buyers remained strong, while purchases by foreign investors saw a slight decline. The total number of sales contracts reached 4,081, marking a 6.6% annual rise. Transactions by local buyers surged by 13.7%, whereas foreign purchases declined by 2.3%.

Among Cyprus’s districts, Limassol had the highest number of transactions, followed by Larnaca, Nicosia, Paphos, and Famagusta. Paphos remains the top choice for foreign buyers, while local demand dominates other districts.

Property price trends varied across Cyprus:

Quarterly House Price Growth:

• Nicosia: +1%
• Famagusta: +3%
• Limassol: +9%
• Larnaca: +1%
• Paphos: +2%

Annual House Price Growth:

• Paphos: +11.8% (highest)
• Famagusta: +11.1%
• Limassol: +7.4%
• Larnaca: +8.1%
• Nicosia: +2.7%

Annual Apartment Price Growth:

• Famagusta: +19.2%
• Larnaca: +15.1%
• Paphos: +14.4%
• Nicosia and Limassol saw more moderate growth.

These trends reflect local supply and demand dynamics. Limassol and Nicosia offer more new properties, while Larnaca, Paphos, and Famagusta face limited supply, driving prices up.

Several factors are shaping property prices:

• New Developments: Residential construction approvals increased by 4% in the first half of 2024 compared to 2023.
• Construction Costs: Building material prices fell by 2% year-on-year.
• Mortgage Rates: Housing loan interest rates stood at 59% in Q3, slightly higher than the previous quarter.
• Lending Activity: New mortgage lending grew by 5%, reaching €270 million, though banks maintained strict loan criteria.

The moderation in price growth is expected to continue as more properties enter the market and demand from foreign investors stabilizes. According to European Commission research, property price expectations are lower than in 2023, suggesting the market is transitioning toward a more stable phase.

While prices are still rising, the pace of growth is slowing, indicating a shift towards a more balanced property market in the coming months.