The rise in house prices in Cyprus is due to both the increase in the cost of building materials and increased demand, according to the Estate Agents Registration Board. This trend was also reflected in the rental costs of both apartments and houses.
According to data from the Central Bank of Cyprus for the first quarter of 2023, the house price index increased by 7.7% compared to the previous year (houses increased in price by 6.6%, apartments by 8.4%). For example, an apartment that cost €150,000 at the beginning of 2022 is now on sale for €163,000, and a house that cost €250,000 is now offered for €265,000.
This situation is causing concern among industry experts as rising interest rates are making it more difficult for families in Cyprus to afford property. In addition, increasing rental prices put pressure on tenants.
It is noticeable that in the Cyprus real estate market a significant part of transactions comes from foreign buyers. In August 2023, every third transaction was made among non-residents.
