The latest RICS Cyprus Property Price Index for Q4 2017 has just been released and reports that the average price of residential apartments and houses across the island rose by 0.8% and 1.4% respectively over the fourth quarter of 2017.
There were significant price rises for houses and apartments in Limassol and Larnaca and for offices in Nicosia. However, residential demand in the coastal areas of Limassol and Larnaca has been caused by overseas investors wanting Citizenship or Permanent Residency, so it will be interesting to see what effect the recent decision by the Cypriot Council of Ministers to limit the number of citizenship applications to 700 a year will have on house and apartment prices in 2018.
Larnaca recorded the largest quarterly increase in apartment prices (up 2.7%), while Limassol reported the largest rise in house prices (up 1.5%). Compared to a year earlier, (the fourth quarter of 2016), prices of houses and apartments rose by 4.3% and 7.1% respectively. Limassol recorded the highest increase in both house and apartment prices, up by 12.6% and 11.1% respectively.
Meanwhile prices for offices, warehouses and retail over the year rose by 8.3%, 4.4% and 3.1% respectively.