Insider Business Central Bank warns over real estate prices

Central Bank warns over real estate prices

The Central Bank of Cyprus has warned that house prices must be closely monitored, at least in some of the Mediterranean island’s areas.

The warning came after the House Price Index for the fourth quarter of 2018 indicated that prices in Cyprus continued to record an increase for yet another quarter. However, the price level is still lower than what it was before the financial crisis.

Despite the significant recovery of GDP in Cyprus, real estate prices are rising in moderation with the exception of coastal Limassol where the increase in demand as well as prices is affected by external factors.

These factors include the construction of the marina, the license for the casino resort and the demand for property due to the investment for citizenship scheme.

In the meantime, real estate prices appear to be suppressed by an increased supply due to the sale of properties by asset management companies or banks trying to get rid of non-performing mortgaged loans, the Central Bank noted.

Increased demand for homes and apartments continues to push prices up, but increased supply of real estate from restructurings of non-performing loans holds them down for specific property categories, it added.

Nonetheless, all indicators show that the upward trend in the real estate sector will continue in 2019. In fact, apartment prices throughout Cyprus recorded an increase of 8.7% over the first six months compared to the historically low level of the fourth quarter of 2015.

And house prices recorded an overall increase of 1.6% from the historically low level of the fourth quarter of 2016, but still remain 30% below their highest level. Nicosia, Limassol and Paphos districts have recorded quarterly growth, while Larnaca and Famagusta showed a slight decline.

 

Read more:

https://in-cyprus.com/cyprus-the-21st-healthiest-country-in-the-world-bloomberg-index/

 

Top Stories

Greece records over 2 thousand new covid cases in tragic peak-135 in ICUs (update)

  Greece recorded a new surge in new covid-cases, going over two thousand daily tally for the first time since the start of the pandemic. 2,056...

Cyprus records Covid death, raising number to 33, five critical-149 new cases

  A ninety one year old woman with underlying illnesses, succumbed to Covid-19 today at the Famagusta General raising the number of positive cases who...

Greek Orthodox priest shot in Lyon, France; assailant flees (update 2)

  A Greek Orthodox priest was shot and injured at a church in the French city of Lyon by an assailant who then fled. The priest...

Tala fire under control

  A massive blaze between the Tala, Koili and Kissonerga communities was placed under control late this afternoon, after more than two hours. It destroyed trees,...

The first 007 dies at 90-So long Sean Connery

  Scottish movie legend Sean Connery, who shot to international stardom as the suave, sexy and sophisticated British agent James Bond and went on to...

Taste

Squash soup

Ingredients: 1 kg pumpkin, cut into small cubes, approximately 5 cups 2 medium (400g) sweet potatoes, cut into cubes, approximately 2 ½ cups 1 chopped leek, only...

Mezedes

No visit to Cyprus is complete without enjoying the traditional meal of many small dishes known as ‘meze’. This large feast, which has been a...

Prawns with fried cheese, barley shaped pasta

Put the barley shaped pasta into a small pan with salted water, bring to a boil and when tender, drain. Peal the prawns leaving...

Salmon and shrimp sheftalies

Mix all ingredients for tabbouli in a bowl and keep to one side so flavours can combine. Prepare the sheftalies: wash and soak the casing...