Flat prices rose in April to June 3.3% compared to the respective quarter of 2016 and 1.5% compared to January to March, the Central Bank of Cyprus said.

House prices rose in the second quarter an annual 0.4% and a quarterly 0.1%, 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% in the second quarter, in Nicosia 0.8% and in Paphos 0.3%, while they fell in Larnaca and Famagusta 1.4% and 0.6% respectively, the central bank said. In Paphos they rose a quarterly 1.8%, 0.6% in Limassol, 0.3% in Nicosia and 0.2% in the Famagusta district while they fell 0.2% in Larnaca.

Apartment prices rose in all districts but Paphos, where they fell 3.2% in the second quarter compared to April to June last year, the bank supervisor said. In Limassol, they rose 6.1%, in Nicosia 2.7%, in Famagusta 2.3% and in Larnaca 0.9%. Compared to January to March, flat prices increased in the second quarter 2.3% in Nicosia, 2.2% in Limassol, 2% in Famagusta and fell 1.1% and 1% in Larnaca and Paphos.

House prices increased 2.2% in Paphos in April to June compared with the second quarter of 2016, 1.1% in Limassol and fell 2.3% in Larnaca and 0.1% in both Nicosia and Famagusta, the central bank said. In the second quarter, they increased a quarterly 2.6% in Paphos and 0.1% in Larnaca, remained stable in Limassol and Famagusta and fell 0.7% in Nicosia.

Source: Cyprus Mail