Cyprus House Prices up 5.9% in 2006

The BuySell Home Price Index recorded a total increase of 5.9% last year compared to a otal increase of 2.5% during 2005...

House prices have been more dynamic in 2006 compared to the previous year. From January to December 2006, the BuySell Home Price Index recorded a total increase of 5.9% compared to a otal increase of 2.5% during 2005.

House prices remained at around heir 2005 levels during the first two months of the year. In March, however, prices began a six-month rally which lasted up until the end of the summer, bringing the BuySell Home Price Index at its highest-ever level of 119.59. The cumulative increase over this six-month period has been 8.9%.

Autumn, on the other hand, saw a corrective path for housing prices with October recording he largest month-on-month decrease for the year (-0.9%). The year ended with a further marginal decrease of 0.4% for December bringing home prices in Cyprus to an annual +5.9% for 2006. The BuySell Home Price Index reached 116.65 in December 2006 bringing the Average Home Price in Cyprus to CYP 90,881.

The BuySell Home Price Index was created and is updated monthly on behalf of BuySell Cyprus Real Estate by the independent economic research organisation S. Platis Economic Research. The Index is announced during the second week of each month and depicts the movement of prices at which residential properties are sold in Cyprus, based on the extensive BuySell Cyprus Real Estate database.

The BuySell Home Price Index has been rebased in September 2005, in order to keep the Index updated with respect to the most recent quality characteristics of the housing market in Cyprus.