According to a recent report by the rating agency DBRS, real estate prices in Cyprus by 2021 increased by 87% compared to the first quarter of 2008, when the global financial crisis occurred.
DBRS assessed the real estate market of Cyprus and five other countries: Spain, Ireland, Italy, Greece and Portugal.
It turned out that in all six countries there was a decline in real estate prices. At the same time, in Ireland in 2013, a sharper drop was recorded, by about 46.0%, compared with the value of real estate in the first quarter of 2008.
Real estate prices in Spain have gradually recovered, to about 85%, after falling to 63.4% in 2014. The fall in property prices in Italy has slowed since 2011, reaching its lowest level in 2019 - 82%.
Greece and Cyprus followed a similar trajectory with a continuous and gradual decline, reaching 58% and 70.7%, respectively, compared to the value of the first quarter of 2008 by the end of 2016 - beginning of 2017.
According to DBRS, the Greek real estate market has recovered by 69% of the lost positions in 13 years, and Cyprus - by 87% compared to the first quarter of 2008.
It is noteworthy that in Portugal, real estate prices not only caught up with the indicators of 2008, but also exceeded them, amounting to 148.8% of the 2008 level.
Until 2008, the growth rates of housing prices in Cyprus exceeded the EU average.
The Cyprus real estate market reacted to the global financial crisis with a clear delay. After the acute phase of the financial crisis in 2013, the prices of houses and apartments in Cyprus collapsed. Until 2019, there was an increase, which was replaced by a slight decline due to the coronavirus pandemic. Nevertheless, in 2021, Cyprus real estate prices not only recovered, but in some cases exceeded the figures of 2019, when the Cyprus real estate market was on the rise.
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