IDEAS home Printed from https://ideas.repec.org/a/erc/cypepr/v3y2009i1p3-25.html
   My bibliography  Save this article

Factors Affecting House Prices in Cyprus: 1988-2008

Author

Listed:
  • Panos Pashardes

    () (Department of Economics and Economics Research Centre, University of Cyprus)

  • Christos S. Savva

    (Department of Commerce, Finance and Shipping, Cyprus University of Technology,and Economics Research Centre, University of Cyprus)

Abstract

In this paper we investigate the impact of various macroeconomic variables on house prices in Cyprus during the period 1988-2008. Furthermore, we examine how specific characteristics of the house affect its price. We find house prices to be particularly sensitive to changes in island’s population. They are also sensitive to the cost of building materials and labour, economic growth and the sterling-euro exchange rate. As regards the question which of these factors contributed most to the large increase in house prices during the period 1988-2008, our analysis points to increase in the cost of materials and labour, the population and the per capita Gross Domestic Product (GDP). In contrast, developments in the stock market and the increase in the number of foreign workers helped towards restraining house price increases.

Suggested Citation

  • Panos Pashardes & Christos S. Savva, 2009. "Factors Affecting House Prices in Cyprus: 1988-2008," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 3(1), pages 3-25, June.
  • Handle: RePEc:erc:cypepr:v:3:y:2009:i:1:p:3-25
    as

    Download full text from publisher

    File URL: http://www.ucy.ac.cy/erc/documents/FullTextPashardesSavva.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Baffoe-Bonnie, John, 1998. "The Dynamic Impact of Macroeconomic Aggregates on Housing Prices and Stock of Houses: A National and Regional Analysis," The Journal of Real Estate Finance and Economics, Springer, vol. 17(2), pages 179-197, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:erc:cypepr:v:11:y:2017:i:1:p:69-82 is not listed on IDEAS
    2. Kim, Taeyoung & Cho, Seong-Hoon & Larson, Eric R. & Armsworth, Paul R., 2014. "Protected area acquisition costs show economies of scale with area," Ecological Economics, Elsevier, vol. 107(C), pages 122-132.
    3. Petros Sivitanides, 2015. "Macroeconomic Influences on Cyprus House Prices: 2006Q1- 2014Q2," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 9(1), pages 3-22, June.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:erc:cypepr:v:3:y:2009:i:1:p:3-25. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Angela Shekersavva). General contact details of provider: http://edirc.repec.org/data/erucycy.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.