Neapolis Property Price Index (NPPI)

The Neapolis Property Price Index (NPPI) is published on a quarterly basis by the Real Estate Department of Neapolis University Pafos, which currently tracks dwelling prices, starting with the initial release for the first quarter of 2023. The objective is to expand the scope of the analysis to include more property types in the near future, thus providing more comprehensive information of the local real estate market.

The NPPI is compiled to enhance transparency and to make a meaningful contribution to the macroeconomic analysis of the local real estate market. Through the index development initiative, it is sought to establish it as an unbiased source of information for various real estate sector participants, including appraisers, real estate agents, investors, land developers, as well as economists, researchers, and government organizations.

Academically, the index serves as a dynamic educational tool for our students in the fields of real estate economics, property valuation and market/data analysis. Incorporating NPPI into our academic programs allows students to gain deeper understanding of how property prices are influenced by various factors and how these prices reflect broader economic trends.

Methodological Note

The NPPI currently monitors the prices of both new and used dwellings, including houses and apartments, throughout all districts of Cyprus from 2012 onwards. The indices are calculated using transaction-based data obtained from the Department of Land and Surveys of Cyprus. Approximately the entire population of the dataset is utilized, which undergoes an extensive process of enrichment and cleaning to elevate the accuracy and reliability of the index. Due to the complexity of the data, diligent attention is paid to the structuring of the database to extract optimal results.

The analysis of the data relies on the hedonic regression method which was found to be the most suitable approach for this instance, considering various property attributes, such as location, size, condition, age, and more. The index report is divided into two main sections: the first summarizing index trends and the second providing database statistics to support the index’s credibility and validity.

The methodology of the NPPI is based on the research article titled “A Proposal for a Residential Housing Price Index in Cyprus Through Analysis of Transaction-Based Data and Comparison with Existing Indices” (2023) authored by Stelios Apostolidis, Dr. Thomas Dimopoulos, and Dr. Martha Katafygiotou, all of whom are affiliated with the Department of Real Estate at NUP. The article can be found to the following link

Index Information

Data Type	:	Transaction-Based, All-Transactions
Data Source	:	Department of Land and Surveys of Cyprus
Method	:	Hedonic Regression, Seasonally Adjusted
Frequency	:	Quarterly
Units	:	Index Points
Base	:	2012Q1 = 100
Indices	:	Dwellings (Houses & Flats), Houses, Flats
Coverage	:	Cyprus, Nicosia, Limassol, Larnaca, Pafos, Famagusta