The Residential Property Price Index (RPPI) continued its upward trend in the third quarter of 2019, with both housing and apartment indices showing increases, and the Central Bank(CBC) announcing a reduction in RPPI dynamics by 2020 due to reduced interest from foreigners. investors as a result of the stricter criteria of the Cyprus Investment Program.
In particular, the RPPI, compiled by the CBC, recorded a quarterly increase of 0.7% in the third quarter of 2019, with all provinces moving upwards. The individual quarterly indices for apartments and houses increased by 1.5% and 0.3%, respectively.
On an annual basis, ie compared to the 3rd quarter of 2018, the RPPI increased by 2.8%. Specifically, there was an annual increase in both apartments by 4.4% and homes by 2.2%.
The largest annual increase in house prices was recorded in Paphos with 4.3% and apartments in Larnaca 8.3%.
The differences in the increases per type of houses (houses and apartments) and per province continued this quarter as well.
Significant increases continued to be recorded in apartment prices in the provinces of Larnaca with an increase of 8.3% and Limassol with 6.8%, while this quarter a large increase of 5.3% is observed in the province of Paphos.
The CBC also reiterated in this report that the increase in apartment prices mainly concerns the coastal areas of the aforementioned provinces and seems to be partly due to the demand for real estate from foreigners, which comes from the Cyprus Investment Program (CIP) and permanent licenses. accommodation.
However, “in the second half of 2019, interest from foreigners seems to have dropped significantly due to the RPPI’s stricter criteria in May 2019,” the CBC notes, noting that “this is expected to affect the momentum for further upward trajectory.” of the real estate sector in 2020 “.