Demand bolsters house prices in Cyprus

Housing prices in Cyprus continued along their upward trajectory in the fourth quarter of 2022, driven by increased construction costs and higher demand. According to the Central Bank of Cyprus (CBC), the Residential Property Price Index (RPPI) recorded a year-on-year increase of 6.6%, surpassing the 6.3% rise observed in the previous quarter in 2022.

Apartment prices rose by a notable 7.7% in the fourth quarter of 2022, while house prices observed growth of 5.6%.

Broken down into districts, Paphos stood out with an impressive annual rise of 10.4% in house prices, while Limassol (9.3%), Larnaca (9.4%), and Paphos (8.6%) registered significant annual growth in apartment prices.

Despite the increase in key European Central Bank interest rates and a subsequent decline in mortgage demand, the CBC noted that real estate demand has not been substantially affected...