Saturday, October 22, 2016
Property prices rise in Cyprus
Cyprus Property Prices:
The Property Price Index has recorded increases in almost all cities and asset classes, with significant increases being recorded in Larnaca area, whilst other cities are progressively bottoming out. Larnaca recorded the largest quarterly increase in apartment prices (1.1%), while the largest rise in house prices (1.1%) was recorded in Paphos. The values of holiday homes rose 2.7% for apartments and 1.1% for houses.
This news is important for my holding in Bank of Cyprus. As property prices recover it makes it easier to reconcile and dispose of properties that the bank has had to repossess due to defaults by borrowers. This is another example that countries just do not dry and blow away after a financial crisis.
If the correct policies are enacted the healing effects can be eventually be seen. This also means that asset prices get revalued to reflect this healing process. I believe that is happening in Cyprus now.