articles | 08 October 2015

Eurostat reports a surprising 7.4% rise in Q2 2015 home prices

Home prices in Cyprus surprisingly rose a quarterly 7.4% in the second quarter of 2015 after falling 2.8% in January to March, the European Union’s statistical division said recently.

Compared to a year before, home prices rose in April to June 2.4% after increasing 0.6% in the first quarter, Eurostat said in a statement on its website today.

Eurostat’s data contradict the findings of the Central Bank of Cyprus which said on September 28 that home prices in Cyprus dropped a quarterly 0.4% and an annual 5%.

Property valuator Pericles Markaris said that the difference in the findings may be related to a difference in the methodology and inclusion of transactions of homes ‘at prime locations’ involving non-Cypriots.

“What is positive is that there is indeed animprovement and optimism among interested buyers and investors who are considering their next steps, either by investing in residential property or even land and plots,” Markaris said in a telephone interview. “I would have expected prices to rise but at a slower pace”.

The Limassol-based property valuator added that new legislation passed by the parliament in the past three months, including laws that reduce transfer fees for property transactions, the suspension of the capital gains tax as well as a law allowing investors who bought properties from insolvent developers to obtain title deeds may directly or indirectly increase demand for property in Cyprus.

The title deeds law “will help improve Cyprus’s image and the stability of the property market,” he said.

Source: Cyprus Mail

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