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:


Top Stories

Further easing of restrictions in force from today

  The further easing of restrictions on gatherings and in the outdoor areas of catering establishments come into force from today, July 12, reflecting the...

Paphos: Eight catering establishments booked

  Paphos police last night carried out 13 checks on catering establishments and booked eight for breaking decrees to prevent the spread of coronavirus. The eight...

Another sizzler, temperatures stuck above 40 C inland

    Cyprus will continue to bake today with temperatures rising to 41 C inland and the heat wave forecast to continue until Wednesday. A yellow alert...

Poles vote in presidential election that could define EU relations

  Poles vote on Sunday in a knife-edge presidential election that may shape the country's future relations with the European Union, which have been frayed...

In first, Trump dons masks in visit to a military medical facility

  President Donald Trump, who has avoided wearing a mask in public even as the coronavirus pandemic spread, donned one on Saturday at a military...


Kolokasi (Taro Root)

Ingredients: (Serves 4) 1 kg kolokasi (taro) root ½ kg pork (lean belly pork or shoulder) cut into large cubes 6 tbsp olive oil 1 head of fresh celery,...


Moungra is a traditional Cypriot mezze which consists in cauliflower pickled in fermented bread dough and typically served as an appetizer or meze. It...

Cheesy Eggplant Rolls

Ingredients 4 Eggplants 2 tbsp olive oil 1 chopped onion, 2 grated carrots 1 garlic clove (sliced) ¾ of the cup finely chopped canned tomato, ½ ts sugar 1 ts oregano 2 tbsp...

Black eyed peas with chard (Louvia me laxana)

Ingredients: 2 cups black eyed peas small lemon (juice) + 1 tsp lemon zest 1 bunch Cypriot chards olive oil & lemon for serving salt & pepper Method: Step 1 Put the...