Macroeconomic Influences on Cyprus House Prices: 2006Q1- 2014Q2

Petros Sivitanides ()
Additional contact information
Petros Sivitanides: Department of Real Estate Valuation and Development, Neapolis University Paphos

Cyprus Economic Policy Review, 2015, vol. 9, issue 1, 3-22

Abstract: This paper attempts to explain the determinants of intertemporal variations in housing prices in Cyprus over the last nine years. The analysis focuses on explaining quarterly percentage changes in the House Price Index published by the Central Bank of Cyprus. After estimating several alternative specifications we were able to explain about 70% of the quarterly percentage changes in Cyprus house prices. Our findings indicate that nominal GDP per capita, and, alternatively, nominal GDP, have the largest impact on prices followed by construction costs and the number of households. Interest rates were found to have the smallest effect. The results provide also indications of an asymmetric effect of GDP on house prices before and after the Lehman Brothers collapse. We believe that the considerably stronger effect of GDP on house prices during the pre-crisis period was due to the abundance of both equity and debt capital for house purchases.

Keywords: Cyprus housing market; House prices; Macroeconomic determinants; Housing market; Real estate market; House price determinants (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://www.ucy.ac.cy/erc/documents/Sivitanides_3-21.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:erc:cypepr:v:9:y:2015:i:1:p:3-22

Ordering information: This journal article can be ordered from

Access Statistics for this article

Cyprus Economic Policy Review is currently edited by Prof. Elena Andreou

More articles in Cyprus Economic Policy Review from University of Cyprus, Economics Research Centre Contact information at EDIRC.
Bibliographic data for series maintained by Vasiliki Bozani ().