Insider Economy Finance Ministry: Property boom is not a bubble

Finance Ministry: Property boom is not a bubble

The property boom in Cyprus is not a bubble, according to a Finance Ministry report which also considers such an eventuality as remote.

However, it does acknowledge that a potential massive sell-off of properties acquired by commercial banks through debt-to-asset swaps, as well as large investment firms acquiring non-performing loans portfolios, could push prices down.

Phileleftheros reported that Finance Minister Harris Georgiades will present on Tuesday the 2019 economic developments and prospects for the period 2020-2022 report to the House Finance Committee.

This also indicates that based on Central Bank of Cyprus figures the development sector as well as Cyprus’ GDP have recovered, however, property prices are moderately rising with the exception of areas affected by specific factors.

“Due to their significant impact on growth, developments in property prices are always closely monitored, especially in view of the fact that price pressures could have a negative impact.  To start with, an unsustainable surge in demand can push prices upwards with the risk of a bubble, even though data, so far, has this scenario as being remote,” says the report.

The Ministry also notes that the ongoing property market recovery, as well as the rise in construction activity, are factors helping the boost of banks’ balance sheets. Because they are increasing the total value of mortgage assets and improve the prospect of repayment of the construction sector’s ever high non-performing loans.

 

Read more:

https://in-cyprus.com/building-costs-during-the-bubble-were-lower/

Top Stories

244 new cases, out of 11,163 tests announced on Friday

The Health Ministry announced 244 new Coronavirus cases out of 11,163 PCR and rapid antigen tests on Friday, 15 January, taking confirmed infections to...

Where to get antigen rapid tests on Saturday

The Health Ministry announced the following antigen rapid test sites for Saturday, 16 January 2021:   LIMASSOL Tassos Papadopoulos building – TEPAK, Limassol 08:30-16:30 Church Agia Varvara, Zakaki...

President Anastasides to get the second dose of COVID-19 vaccine next Monday

Cyprus President, Nicos Anastasiades, will receive the second dose of the vaccine against COVID-19, next Monday at the Health Center of Latsia, according to...

Expert says milder version of pandemic likely to be present in 2022

Dr Constantinos Tsioutis, Assistant Professor, Internal Medicine & Infection Prevention and Control at the Department of Medicine of the European University Cyprus and head...

Spain’s COVID-19 incidence climbs above 500 cases per 100,000 people

Increased activity at hospitals and health centres near Madrid was seen on Friday (January 15) as Spain's coronavirus incidence as measured over the past...

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...