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House prices not recovered from 2007 crash

House prices and rents in Cyprus have yet to recover to the levels last seen before the island’s property market bubble burst in 2007 according to the statistical office of the European Union (Eurostat).

Cyprus house prices not recovered from 2007 crash AN ANALYSIS by Eurostat reveals that Cyprus and Greece are the only two countries in the European where house prices and rents are lower than they were thirteen years ago in 2007.

The price of houses and rents in the EU have followed very different paths since the financial crisis. While rents increased steadily throughout the period up to the third quarter of 2019, house prices have fluctuated significantly.

After an initial sharp decline following the financial crisis, prices remained more or less stable between 2009 and 2014. Then there was a rapid rise in early 2015, since when house prices have increased at a much faster pace than rents.

Over the period 2007 until the third quarter of 2019 rents increased by 21.0% and prices of houses by 19.1%.

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Between 2007 and the third quarter of 2019, there were increases in house prices in 22 EU Member States and decreases in 6, with the highest rises in Austria (+85.5%), Luxembourg (+80.6%) and Sweden (+80.3%). The largest decreases were observed in Greece (-40.0%), Romania (-27.2%) and Ireland (-16.7%).

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For rents, the pattern was different with increases in all Member States, except Greece1 (-17.5%) and Cyprus (-0.3%). The largest increases were observed in Lithuania (+101.1%), Czechia (+78.6%) and Hungary (+67.8%).

1 Annual estimate 2018 instead of third quarter of 2019.

(In a separate Eurostat news release, Cyprus recorded the largest quarterly drop in house prices of all the European Union member states in the third quarter of 2019.)

Readers' comments

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  • Lost Faith in Justice says:

    Excellent pictogram for all those foreign investors who were missold property in Cyprus in 2007 and are currently in the queue for a court hearing. Of course, the value of the underlying loans will be shooting out in the opposite direction (and probably off the chart).

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