According to Eurostat, property prices in Cyprus continue to decline rapidly.
So, in the first quarter of 2021, the cost of housing in the country fell by a record 5.8% compared to the same quarter of 2020.
At the same time, property prices in the eurozone increased by 5.8% over the year. The growth of the indicator became the maximum since the 4th quarter of 2006. In the 27 EU countries, house prices rose 6.1% on an annualized basis after rising 5.8% in the previous quarter. The growth of the indicator became the maximum since the 3rd quarter of 2007. Compared to the 4th quarter, the increase in house prices accelerated to 1.7% after 1.4% a quarter earlier.
It is worth noting that the largest annual growth in house prices in the first quarter of 2021 was recorded in Luxembourg (+ 17%), Denmark (+ 15.3%), Lithuania (+ 12%), Czech Republic (+ 11.9%) and the Netherlands (+ 11.3%).
Compared to the previous quarter, the largest price increases were recorded in Estonia (6.6%), Denmark (5.8%) and Lithuania (5%). And the largest drop is in Cyprus (-5.8%), Malta (-1.6%) and Slovakia (-1.2%).
Eurostat also reported that over 10 years (from 2010 to the 1st quarter of 2021), housing prices in the EU increased by 30.9%, rents - by 15.3%.
From 2010 to the second quarter of 2011, house prices and rents in the EU followed a similar trajectory. But since the second quarter of 2011, they have gone completely different paths. While rents rose steadily throughout the period up to the first quarter of 2021, property prices fluctuated significantly.
After a sharp decline between the second quarter of 2011 and the first quarter of 2013, house prices remained more or less stable between 2013 and 2014. Then, at the beginning of 2015, there was a rapid increase. And since then, housing prices have risen much faster than the cost of rent.
From 2010 to the first quarter of 2021, house prices rose in 23 EU member states and fell in four. The largest growth was recorded in Estonia (+ 126.8%) and Luxembourg (+ 108.2%). A decrease was observed in Greece (-28.1%), Italy (-14.4%), Cyprus (-8.9%) and Spain (-4.8%).
The picture was different for rent. When comparing the first quarter of 2021 to 2010, rates increased in the 25 EU member states and decreased in two. The largest growth was observed in Estonia (+ 140.4%), Lithuania (+ 108.6%) and Ireland (+ 63.3%). A decrease was recorded in Greece (-25.2%) and Cyprus (-3.8%).
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