Cyprus: Property rentals lead recovery after 2013 bailout

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Four years after the fiscal and banking crisis in Cyprus, prices of property have not improved since the real estate and construction sector burst. According to sources, rents in properties have recovered since the bail-in.

Due to more stringent controls on lending of Cypriot banks, the demand within real estate leaned towards renting properties rather than buying them.

With regards to property rentals, rents increased by 14.4% for offices, 10.2% for houses, 8.3% for flats, 6.8% for retail premises and 4.2% for warehouses, in comparison to Q2 of 2016.

According to the Cyprus division of the Royal Institute of Chartered Surveyors (RICS), property prices have not managed to recover lost ground since the second quarter of 2013.

In Q2 of 2017, prices of apartments were still 4.8% below than those in the corresponding quarter of 2013 across Cyprus. On other hand, houses were 0.6% below and have almost recovered the loss in value according to the RICS data.