Cyprus property prices up in Q4; Larnaca shines

A Cyprus property price index put together by RICS showed that residential real estate values rose in the last quarter of 2016, with Larnaca outperforming on the island.

Residential prices for both houses and flats increased on a quarterly basis by 1.7% and 0.7% respectively, with the biggest increase being in Larnaca (3.3% for flats) and Limassol (1.8% for houses), said RICS in a statement.

During the fourth quarter of 2016, the Cyprus economy showed further signs of stability, growing by a quarterly pace of 0.7% while unemployment remained at about 13%.

The number of property transactions being completed in the country are on the rise amidst an uptick in confidence in the country's banking system. Financial institutions have been more willing to fund real estate deals but interest from locals remains sluggish.