After seven long years of house price falls, Cyprus’ housing market is now showing some improvement, amidst recovering economy. House price falls are now decelerating. Property transactions are rising. Residential construction activity is also increasing.
These developments follow the 2015 passage of a “Trapped Buyers Law” to enable access to title deeds, a 2014 regulatory reform to ensure greater transparency, and measures to exempt buyers who buy during 2016 from all future capital gains taxes, and give them a 50% discount on Title Deeds transfer tax.
During 2015, the nationwide residential property price index dropped 1.8% but when adjusted for inflation, it actually increased slightly by 0.17%, based on figures released by the Central Bank of Cyprus. On a quarterly basis, residential property prices were unchanged in Q4 2015.
This was supported by figures released by the Royal Institution of Chartered Surveyors (RICS), which showed that house prices in Cyprus fell by 1.42% y-o-y in 2015, to an average of €372,714. Nationwide house prices also increased 0.56% during 2015 when adjusted for inflation. House prices fell 0.8% (-1.46% inflation-adjusted) q-o-q in Q4 2015.
- Nicosia, Cyprus’ capital, house prices declined by 1.42% (increased 0.56% inflation-adjusted) to an average price of €372,714 (US$414,065)
- Paphos house prices rose by 3.1% (5.7% inflation-adjusted) to an average price of €353,991 (US$393,265)
- In Farmagusta-Paralimni, house prices remained unchanged at €320,916 (US$356,520) (increased 2.1% inflation-adjusted)
- In Larnaca, house prices declined by 0.04% (increased 1.97% inflation-adjusted) to an average price of €277,222 (US$307,978)
- In Limassol, house prices declined by 3.18% (-1.23% inflation-adjusted) to an average price of €304,105 (US$337,844)