According to a central bank report there has been a rise in house prices for the first time since 2008.
In the fourth quarter of 2017, according to the house price index the apartment prices and house prices rose quarterly by 0.9% and 0.2%, respectively, and on an annual basis of 3.3% and 0.9% respectively.
In the report it is noted that the gradual recovery in the real estate sector is based on sound economic fundamentals. Real estate transactions, building permits, demand for residential mortgages and property confidence indicators are on the increase, while construction activity continues to surge, assisted by the low-interest rate environment. However, non-performing loans, especially those secured for a first-time residence, are still a challenge.
Concerning price changes in the provinces, the largest increase of house prices on a quarterly basis, at 2.9%, was recorded in Limassol. The largest increase in apartment prices was recorded in Paphos (2.2%).