Growth in house prices slows down

The increase in property prices has decelerated in the first quarter of 2024, based on recent data from the Statistical Office.

Preliminary estimates from the Statistical Service indicate that the house price index for Q1 2024 stands at 111.53 points.

This represents a 1.1% increase compared to the same quarter in 2023, a slowdown from the 1.6% annual increase observed in Q4 2023.

Comparing the index on a quarterly basis, it increased by 1.4% after declining by 0.6% in the prior quarter.

With land value taken into account, the House Price Index (HPI) is a quarterly metric that analyses changes in the average cost of residential properties, including both new and existing homes.

All territories within the jurisdiction of the Government of the Republic of Cyprus are covered by the data used in the HPI, which comes from the Department of Cadastre and Land Survey of the Ministry of Interior.

The data is divided into two categories: existing and new housing units. Individual indicators are compiled for each category using the Rolling Window Hedonic Regression model, and they are then weighted by the total property value in each category from the prior year.