By Stelios Orphanides
Home prices rose in the second quarter 1.1 per cent compared with the respective quarter of 2016 and a quarterly 0.5 per cent as flat prices pick up, the Central Bank of Cyprus said.
Flat prices rose in April to June 3.3 per cent compared to the respective quarter of 2016 and 1.5 per cent compared to January to March, the Central Bank of Cyprus said.
House prices rose in the second quarter an annual 0.4 per cent and a quarterly 0.1 per cent, the bank supervisor said. It was the first time in seven years that house prices rose in a quarter compared to a year before.
The overall accelerated rate at which home prices recover lost ground both on a quarterly and annual basis “confirms the gradual recovery of the real estate sector in Cyprus as reflected in other indicators,” the central bank said. “Combined with the robust recovery of the wider economy, confidence in the sector is strengthened and creating prospects for stronger demand”.
Home prices rose in the district of Limassol an annual 2.3 per cent in the second quarter, in Nicosia 0.8 per cent and in Paphos 0.3 per cent, while they fell in Larnaca and Famagusta 1.4 per cent and 0.6 per cent respectively, the central bank said. In Paphos they rose a quarterly 1.8 per cent, 0.6 per cent in Limassol, 0.3 per cent in Nicosia and 0.2 per cent in the Famagusta district while they fell 0.2 per cent in Larnaca.
Apartment prices rose in all districts but Paphos, where they fell 3.2 per cent in the second quarter compared to April to June last year, the bank supervisor said. In Limassol, they rose 6.1 per cent, in Nicosia 2.7 per cent, in Famagusta 2.3 per cent and in Larnaca 0.9 per cent. Compared to January to March, flat prices increased in the second quarter 2.3 per cent in Nicosia, 2.2 per cent in Limassol, 2 per cent in Famagusta and fell 1.1 per cent and 1 per cent in Larnaca and Paphos.
House prices increased 2.2 per cent in Paphos in April to June compared with the second quarter of 2016, 1.1 per cent in Limassol and fell 2.3 per cent in Larnaca and 0.1 per cent in both Nicosia and Famagusta, the central bank said. In the second quarter, they increased a quarterly 2.6 per cent in Paphos and 0.1 per cent in Larnaca, remained stable in Limassol and Famagusta and fell 0.7 per cent in Nicosia.