Cyprus witnessed a notable increase in house prices during the second quarter of 2023, with the House Price Index (HPI) rising by 3.2 per cent during this time, compared to the same period in 2022.

The index reached 109.72 units, based on a preliminary estimate released by the Cyprus Statistical Service (Cystat) on Tuesday.

The reference year for the index, which is set at 100, is 2015.

When compared to the first quarter of 2023, the House Price Index (HPI) showed a slight decrease of 0.4 per cent, indicating a moderate fluctuation in the housing market during the initial months of the year.

These statistics reflect the evolving dynamics of the real estate sector in Cyprus, capturing both the steady growth in property values over the past year and the minor quarterly adjustment in the second quarter of 2023.

Notably, the rising property prices in Cyprus, primarily driven by increasing construction costs and demand, have raised concerns among experts.

Marinos Kineyirou, president of the Council for Registration of Real Estate Agents, recently noted that many owners are seeking unrealistically high property prices.

“We have noticed in recent times that many property owners, land development entrepreneurs, and even private individuals are seeking unnaturally high selling and rental prices for their properties,” Kineyirou said.

“Currently, there are prices that do not align with the traditional and logical parameters of the Cypriot property market,” he added.