ACCORDING to the Central Bank’s December Economic Bulletin, property prices fell by 1.8% during the first three quarters of 2010 compared to the 4.1% price fall they suffered in 2009.
This is the first time that the results of the Real Estate Index prepared by the Central Bank, in collaboration with domestic monetary and financial institutions, have been published.
The Index correlates with other trends in the housing market including the rate of change in the construction production index, the construction material price index and domestic sales of cement.
The Real Estate Price Index will be published on a quarterly basis by District and/or type of property.
The Central Bank of Cyprus is expected to provide a more detailed description of the methodology in further releases or announcements.
The Economic Bulletin also reported that loans to the real estate sector at the end of September accounted for 20.6 percent of total domestic loans while home loans increased 15.4 percent in September this year compared to September 2009.
View the Central Bank’s December Economic Bulletin (Greek). Information on the Real Estate Price Index can be found on page 64.