Cyprus house rates drop y-o-y in Q2

Cyprus house rates drop y-o-y in Q2

House prices in Cyprus have marked their biggest annual drop since the first quarter of 2014 as the Covid-19 outbreak and a scandal involving Cyprus’ golden passport scheme have left their scars on the house market.

The Cyprus House Price Index (HPI) decreased 2.9% in the second quarter from a year ago, with experts attributing the drop to a reduction in the numbers of foreign students, coupled with a report claiming that criminals and fugitives had access to Cyprus passport for a price.

Panos Danos, CEO of Danos Group, a Europe-based consultant company, told Xinhua that real estate agents have recorded a sharp decrease in demand for housing from foreign students, which in turn has pushed a number of properties to the market for rent or sale.

“Cyprus banks are making things harder as they are unwilling to give out housing loans to new couples, for fear of increasing their Non-Performing Exposure,” said Danos.

The HPI for 2020’s second quarter was 109.48 units, down from 112.73 a year ago. Compared to the first quarter of 2020, the HPI increased by 0.3 percent from 109.13, according to data released by Cyprus Statistical Services last week. [Xinhua]

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