THE CENTRAL Bank of Cyprus reports that home prices, which include apartments and houses, increased 0.5 per cent in the second quarter of 2017 compared with the first quarter in its latest Residential Property Price Index.
Compared with the first quarter of 2016, apartment prices in Larnaca fell by 1.1% and by 1.0% in Paphos. However in the remaining districts of Nicosia, Limassol and Famagusta they rose by 2.3%, 2.2% and 2% respectively.
On an annual basis, apartment prices in Paphos fell by 3.2%, but rose in the other four districts. Prices in Limassol rose by 6.1%, prices in Nicosia rose by 2.7%, while prices in Famagusta and Larnaca rose by 2.3% and 0.9% respectively.
Compared with the first quarter of 2016, house prices in Nicosia fell by 0.7% while remaining steady in both Limassol and Famagusta and rising by 0.1% in Larnaca and 2.6% in Paphos.
On an annual basis, house prices in Larnaca fell by 2.3% and by 0.1% in both Nicosia and Famagusta. Meanwhile house prices in Paphos rose by 2.2% and in Limassol by 1.1%
The Central Bank considers that the pace at which home prices are increasing, both on a quarterly and annual basis, confirm the gradual recovery of the Cyprus real estate sector as suggested by other relevant indicators and, combined with robust growth in the wider economy, confidence in the sector is strengthened creating prospects for further development and a recovery in demand.