The Cyprus property market witnessed a record number of sales during the second quarter of 2023, reaching a level not seen in 15 years, according to a report released this week by the Central Bank of Cyprus (CBC).
Furthermore, property prices, especially for apartments, have continued to rise, driven primarily by increased demand, itself fuelled by foreign investor interest.
Delving into the data, the CBC report noted that during the second quarter of 2023, the Cyprus House Price Index (HPI) reported a 1.5 per cent increase compared to the 2.1 per cent rise in the previous quarter.
This growth was primarily attributed to a 0.7 per cent increase in house prices and a substantial 3.1 per cent increase in apartment prices.
On an annual basis, housing prices increased by 7.4 per cent in the second quarter of 2023 compared to 7.7 per cent in the first quarter, with apartment prices rising by 10.1 per cent and house prices by 5.6 per cent.
The majority of property transactions involved domestic buyers. However, the largest annual increase in sales came from foreign investors.
The surge in demand, combined with limited new housing supply, appears to be the most significant factor contributing to the increase in property prices during the second quarter of 2023, the Central Bank of Cyprus noted.
What is more, the report explained that the increased fo