Property prices in Cyprus are falling. This is evidenced by the data of the Statistical Service of the country (CyStat).
According to the latest CyStat report, in the second quarter of 2021, the Cyprus Residential Property Price Index (HPI) was fixed at around 104.07 points.
The decline was 4.9% compared to the second quarter of 2020 and 5.8% - compared to the first quarter of 2021.
The Cyprus House Price Index (HPI) is a quarterly index that measures the change in average residential property prices. It covers all types of residential properties, both new and secondary. The source of the data used to set the indices is the Department of Lands and Surveys of the Ministry of the Interior. The data covers all areas that are under the control of the government of the Republic of Cyprus.
But in the EU, in contrast to Cyprus, prices, on the contrary, are growing.
According to data published by the statistical agency Eurostat, in the second quarter of 2021, property prices in the EU increased by 7.3% yearly, only in the Eurozone - by 6.8%.
This is the highest annual growth for the Eurozone since the fourth quarter of 2006 and the third quarter of 2007 for the EU. By the way, in the first quarter of 2021, housing prices increased by 5.7% and 6.1%, respectively.
Among the EU member states for which data are available, the highest annual growth in house prices in the second quarter of 2021 was recorded in Estonia (+16.1%), Denmark (+15.6%) and the Czech Republic (+14.5 %). At the same time, prices fell for real estate only in Cyprus (-4.9%).
Compared to the previous quarter, the largest growth in property prices was recorded in Latvia (+6.7%), Slovenia (+4.5%) and Austria (+4.2%).
It is worth noting that, unlike CyStat, the Central Bank of Cyprus recently released slightly different data. According to the report of the country's main financial institution, prices for apartments and houses in Cyprus have increased in 2021.
Moreover, in some cases, they even exceeded the indicators of 2019, which became a turning point for overcoming the negative climate in the country's real estate sector after the 2013 financial crisis.
It should be mentioned that the House Price Index of the Central Bank of Cyprus is calculated based on the market value of real estate using a statistical methodology widely used in international practice, and in part taking into account developments in previous quarters using normalized regression coefficients.
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