Cyprus and Greece are the only countries in the EU where rental prices have declined over the past decade, according to the latest data from Eurostat.
From 2010 to the second quarter of 2021, rental rates in Cyprus fell by 3%, and in Greece - by 25%.
The highest growth was recorded in Estonia (142%), Lithuania (109%) and Ireland (66%). As for the average cost of rental housing in the European Union for the same period, it increased by 16%. This trend is noted in 25 EU countries.
It is worth noting that Cyprus has also entered the top three among the EU member states in terms of the overall decline in the cost of housing since 2010.
On the island, this figure was equal to -8%. Most of all, real estate prices fell in Greece (-28%) and Italy (-13%). The highest growth was recorded in Estonia (133%), Luxembourg (111%) and Hungary (109%). Overall, property prices in the European Union rose by an average of 34% between 2010 and the second quarter of 2021.
According to the Eurostat report, rents and house prices in the EU continued to grow steadily in the second quarter of 2021, increasing by 1.3% and 7.3%, respectively, compared to the same period in 2020. From 2010 to the second quarter of 2011, housing prices and rents in the EU have followed the same trajectory, but since the second quarter of 2011 they have diverged significantly. While rents rose steadily until the second quarter of 2021, home prices fluctuated wildly.
After falling sharply between the second quarter of 2011 and the first quarter of 2013, house prices remained relatively stable between 2013 and 2014. Then, in early 2015, there was a sharp jump and house prices rose much faster than rents.
It is worth noting that the current sharp rise in property prices in Cyprus, where there is a significant increase in housing and rentals in the second quarter of 2021, is primarily due to their sharp drop as a result of the 2020 pandemic crisis.
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