The residential property price index Q1 2018

The RPPI1 (houses and apartments) increased by 0,6% in 2018Q1. This was the seventh consecutive quarterly increase. The apartment price index and the house price index recorded a quarterly increase of 0,9% and 0,4%, respectively. Sub- indices of house prices by district have increased, with the exception of Larnaca, which recorded a marginal decrease of 0,1%.

The RPPI increased by 1,8% on an annual basis in 2018Q1. All RPPI district sub-indices have recorded an increase, with the largest being in Famagusta (2,9%) and the lowest in Larnaca (1,1%).

The recovery of the real estate sector is expected to continue in the coming quarters. This is based on relevant economic indicators, which registered a positive trend in 2018Q1. Although VAT imposed on land transactions has been applied since January 2018, sales contracts and building permits have continued to increase in 2018Q1.