The Central Bank of Cyprus raised the alarm on Tuesday, calling for vigilance and close monitoring of rising property prices in Limassol, a result of the government’s citizenship-by-investment programme.
CBC figures show that the Property Price Index (PPI), which includes both residential homes and apartments for the third quarter of 2018 presented a 0.3 per cent increase compared to the previous quarter, and a 1.6 per cent increase compared to the corresponding period last year.
Apartment prices rose by 1.2 per cent on a quarterly basis, and by 8.7 per cent on an annual basis, figures show.
This increase, the CBC notes, “seems to be due to increased demand, particularly in coastal areas, mainly due to the transactions made in the framework of the investment programme for obtaining of a Cyprus passport.”
By district on a quarterly basis, Limassol properties showed the biggest price increase with 1.4 per cent, followed by Famagusta with 1.3 per cent, Larnaca with 0.3 per cent. Nicosia prices remained stable while Paphos property prices decreased by 0.8 per cent.
Famagusta recorded the highest property price increase on an annual basis, with prices up by 4.1 per cent, followed by Limassol with 3.6 per cent, Larnaca with 1.6 per cent, Nicosia with 0.7 per cent and Paphos with 0.1 per cent.
While the price of residential homes rose only in Limassol and Famagusta on a quarterly basis, apartment prices rose in all districts, with Famagusta leading by 3 per cent, followed by 2.9 per cent in Limassol, 2.2 per cent in Larnaca, 0.6 per cent in Paphos and 0.1 per cent in Nicosia.
With apartment prices soaring by 8.7 per cent in the third quarter of 2018 compared to that of the previous year, the CBC called for close monitoring of the situation.