THE CYPRUS Central Bank reports that property prices recorded a small quarterly increase of 0.3 percent in the fourth quarter of 2016 in the latest edition of its Residential Property Price Index (RPPI).
This is the second consecutive quarterly rise which, although small, points to a recovery in the island’s real estate sector said the Central Bank in its report.
Over the fourth quarter of 2016, apartment prices rose 1.3% and house prices fell 0.1%, while compared to the fourth quarter of 2015, both house prices and apartment prices fell by 1.9%.
The RPPI recorded quarterly increases in Nicosia (0.5%), Limassol (0.5%) and Famagusta (0.2%) and losses in Paphos (-1.1%) and Larnaca (-0.7%).
Compared to the fourth quarter of 2016, the RPPI reports that home prices fell in all districts; in Famagusta (-5.6%), in Nicosia (-1.1%) and in Larnaca and Paphos (-1.5%).
On a quarterly basis, apartment prices rose 2.0% in Limassol, 1.9% in Larnaca, 0.8% in Nicosia and 0.1% in Famagusta.
Although apartment prices in Paphos fell by 2.4% over the quarter, the Central Bank reports that the fall would have been smaller if debt-to-asset swaps had been taken out of the equation. (The Bank notes that debt-to-asset swaps will be excluded from future analyses in order to comply with the Eurostat methodology).
On an annual basis, apartment prices in Larnaca, Paphos, Limassol and Nicosia rose by 2.8 percent, 2.2%, 1.6% respectively, while falling in Famagusta by 6.4%.
On a quarterly basis, house prices in Famagusta and Nicosia rose by 0.5% and 0.4% respectively and remained stable in Limassol. Meanwhile quarterly falls of 2.1% and 0.7% were recorded in Larnaca and Paphos respectively.
However, on an annual basis house prices fell in all districts; Famagusta (-4.6%), Larnaca (-3.5%), Nicosia (-1.6%), Paphos (-1.5%) and Limassol (-1.2%).