The Cyprus housing market continued its upward trajectory throughout the fourth quarter of 2023, according to data released by the Central Bank of Cyprus. The Residential Property Price Index (RPPI) witnessed a notable 2.3% increase, marking the fourth consecutive quarter of growth.

Driving this surge were substantial gains in apartment prices, which soared by 3.2%. This trend underscores a persistent preference for smaller, more affordable housing options, particularly in urban areas.

Robust demand from domestic buyers remains a primary driver, fueled in part by investment strategies such as buy-to-let ventures. However, a decrease was observed in the number of property sale deeds submitted by foreign buyers. Additionally, there was a decline in the number of registrations of companies of foreign interest through the Companies Facilitation Unit compared to 2022, within the framework of the headquartering policy.

During the fourth quarter of 2023, the RPPI (houses and apartments) recorded a 2.3% increase compared to a 2.2% increase in the previous quarter. This growth stemmed from a 1.8% increase in house prices and a 3.2% increase in apartment prices.

On an annual basis, housing prices saw an 8.3% increase in the fourth quarter of 2023, compared to 7.6% in the third quarter. Apartment prices rose by 12.7%, while house prices increased by 5.7% during the same period.

Quarterly housing prices increased in all districts for the fourth consecutive quarter during Q4 2023. Specifically, Nicosia saw a 1.5% increase, Limassol 3%, Larnaca 2.5%, Pafos 2.7%, and Famagusta 2.1%.

Regarding annual changes in the RPPI by district, there was an increase across Cyprus. Specifically, housing prices in Nicosia increased by 5.1%, in Limassol by 10.7%, in Larnaca by 11%, in Pafos by 8.3%, and in Famagusta by 9.5%.

House prices on a quarterly basis increased in all districts. Specifically, in Nicosia by 1.5%, in Limassol by 2.5%, in Larnaca by 1.2%, in Pafos by 1.7%, and in Famagusta by 1.4%. On an annual basis, house prices increased in all districts as well. Specifically, in Nicosia by 5%, in Limassol by 6.5%, in Larnaca by 7.7%, in Pafos by 2.6%, and in Famagusta by 10.9%.